Why is Nitto Kogyo Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Positive results in Dec 25
- RAW MATERIAL COST(Y) Fallen by -7.16% (YoY)
- NET SALES(Q) Highest at JPY 54,058 MM
- OPERATING PROFIT(Q) Highest at JPY 7,481 MM
3
With ROE of 9.07%, it has a very attractive valuation with a 1.08 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 27.92%, its profits have risen by 16.1% ; the PEG ratio of the company is 0.7
- At the current price, the company has a high dividend yield of 0
How much should you hold?
- Overall Portfolio exposure to Nitto Kogyo Corp. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nitto Kogyo Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nitto Kogyo Corp.
27.92%
1.07
26.36%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
5.78%
EBIT Growth (5y)
0.58%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
1.29
Tax Ratio
23.67%
Dividend Payout Ratio
50.17%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.79%
ROE (avg)
7.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.08
EV to EBIT
9.28
EV to EBITDA
6.09
EV to Capital Employed
1.08
EV to Sales
0.64
PEG Ratio
0.74
Dividend Yield
0.02%
ROCE (Latest)
11.68%
ROE (Latest)
9.07%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
No Trend
Technical Movement
10What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -7.16% (YoY
NET SALES(Q)
Highest at JPY 54,058 MM
OPERATING PROFIT(Q)
Highest at JPY 7,481 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13.84 %
PRE-TAX PROFIT(Q)
Highest at JPY 5,966 MM
NET PROFIT(Q)
Highest at JPY 4,619 MM
EPS(Q)
Highest at JPY 121.73
-8What is not working for the Company
INTEREST(HY)
At JPY 155 MM has Grown at 51.96%
Here's what is working for Nitto Kogyo Corp.
Net Sales
Highest at JPY 54,058 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 54,058 MM has Grown at 12.82%
over average net sales of the previous four periods of JPY 47,915.5 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 7,481 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 13.84 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 5,966 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 5,966 MM has Grown at 58.75%
over average net sales of the previous four periods of JPY 3,758 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 4,619 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 4,619 MM has Grown at 70.04%
over average net sales of the previous four periods of JPY 2,716.39 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 121.73
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -7.16% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Nitto Kogyo Corp.
Interest
At JPY 155 MM has Grown at 51.96%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






