Nitto Seiko Co., Ltd. (5957) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rix Corp.

Mimaki Engineering Co., Ltd.

Nitto Seiko Co., Ltd.

Y.A.C. HOLDINGS CO., LTD.

NS Tool Co., Ltd.

Corona Corp.

Yamashin-Filter Corp.

Toyo Kanetsu KK

Nihon Trim Co., Ltd.

Okamoto Machine Tool Works, Ltd.

Yushin Precision Equipment Co., Ltd.

Why is Nitto Seiko Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 21.36% of over the last 5 years

Positive results in Dec 25

RAW MATERIAL COST(Y) Fallen by 1.91% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 3.36 times
DIVIDEND PER SHARE(HY) Highest at JPY 3.7

With ROE of 6.58%, it has a very attractive valuation with a 0.88 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 35.89%, its profits have fallen by -0.5%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 35.89% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 70.84%

Real-Time Research Report

Verdict Report

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.

35.89%

1.41

24.54%

Japan Nikkei 225

69.82%

2.78

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.83%

EBIT Growth (5y)

21.36%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

1.30

Tax Ratio

32.60%

Dividend Payout Ratio

38.76%

Pledged Shares

Institutional Holding

ROCE (avg)

11.24%

ROE (avg)

6.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.88

EV to EBIT

7.07

EV to EBITDA

4.99

EV to Capital Employed

0.85

EV to Sales

0.48

PEG Ratio

Dividend Yield

0.12%

ROCE (Latest)

12.04%

ROE (Latest)

6.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.91% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.36 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.7

NET SALES(Q)

Highest at JPY 14,239.57 MM

OPERATING PROFIT(Q)

Highest at JPY 1,550.02 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,265.39 MM

NET PROFIT(Q)

Highest at JPY 829.28 MM

EPS(Q)

Highest at JPY 22.86

-8What is not working for the Company

INTEREST(HY)

At JPY 33.6 MM has Grown at 161.61%

Here's what is working for Nitto Seiko Co., Ltd.

Net Sales

Highest at JPY 14,239.57 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 14,239.57 MM has Grown at 16.12%

over average net sales of the previous four periods of JPY 12,262.29 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,550.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,265.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 829.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 829.28 MM has Grown at 59.58%

over average net sales of the previous four periods of JPY 519.65 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 22.86

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 3.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3.7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.91% (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 33.6 MM has Grown at 161.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)