Why is Nitto Seiko Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Operating profit has grown by an annual rate 7.22% of over the last 5 years
3
Negative results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 5,349.67
- INTEREST(Q) Highest at JPY 24.44 MM
4
With ROE of 6.47%, it has a very attractive valuation with a 0.68 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 10.27%, its profits have risen by 9.6% ; the PEG ratio of the company is 1.1
- At the current price, the company has a high dividend yield of 0.2
5
Underperformed the market in the last 1 year
- The stock has generated a return of 10.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
How much should you hold?
- Overall Portfolio exposure to Nitto Seiko Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nitto Seiko Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nitto Seiko Co., Ltd.
9.52%
0.76
24.28%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
6.73%
EBIT Growth (5y)
7.22%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
1.30
Tax Ratio
32.60%
Dividend Payout Ratio
32.40%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.24%
ROE (avg)
6.41%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.68
EV to EBIT
5.21
EV to EBITDA
3.62
EV to Capital Employed
0.61
EV to Sales
0.35
PEG Ratio
1.10
Dividend Yield
0.17%
ROCE (Latest)
11.63%
ROE (Latest)
6.47%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
4What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at JPY 3.79
RAW MATERIAL COST(Y)
Fallen by -0.09% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 3.79%
-13What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 5,349.67
INTEREST(Q)
Highest at JPY 24.44 MM
Here's what is working for Nitto Seiko Co., Ltd.
Dividend per share
Highest at JPY 3.79 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Debtors Turnover Ratio
Highest at 3.79%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -0.09% (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 Seiko Co., Ltd.
Interest
At JPY 24.44 MM has Grown at 606.39%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 5,349.67
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 24.44 MM
in the last five periods and Increased by 606.39% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






