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 21.36% of over the last 5 years
3
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 3,465.92
- INTEREST(Q) Highest at JPY 39.69 MM
4
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 31.31%, its profits have fallen by -0.5%
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 31.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%
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.
31.31%
1.25
24.72%
Japan Nikkei 225
71.75%
2.62
26.55%
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)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
1.29
Tax Ratio
32.60%
Dividend Payout Ratio
38.76%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.24%
ROE (avg)
6.41%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
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
NA
Dividend Yield
0.12%
ROCE (Latest)
12.04%
ROE (Latest)
6.58%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
6What is working for the Company
ROCE(HY)
Highest at 7.17%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.17 times
RAW MATERIAL COST(Y)
Fallen by -1.56% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.27 times
-13What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 3,465.92
INTEREST(Q)
Highest at JPY 39.69 MM
Here's what is working for Nitto Seiko Co., Ltd.
Debtors Turnover Ratio
Highest at 4.17 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Inventory Turnover Ratio
Highest at 3.27 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -1.56% (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 39.69 MM has Grown at 134.15%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 3,465.92
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 39.69 MM
in the last five periods and Increased by 134.15% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






