Why is Nitto Seimo Co., Ltd. ?
1
Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months
- Poor long term growth as Net Sales has grown by an annual rate of 2.59% and Operating profit at -2.65% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 6.39% signifying low profitability per unit of shareholders funds
2
Negative results in Apr 25
- INTEREST(HY) At JPY 74.24 MM has Grown at 61.17%
- NET PROFIT(HY) At JPY 142.3 MM has Grown at -29.13%
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.04%
3
Underperformed the market in the last 1 year
- The stock has generated a return of 4.30% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Nitto Seimo Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nitto Seimo Co., Ltd.
4.3%
0.26
18.94%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
2.59%
EBIT Growth (5y)
-2.65%
EBIT to Interest (avg)
6.19
Debt to EBITDA (avg)
10.68
Net Debt to Equity (avg)
2.22
Sales to Capital Employed (avg)
0.89
Tax Ratio
37.65%
Dividend Payout Ratio
24.24%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.48%
ROE (avg)
6.39%
Valuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.54
EV to EBIT
23.75
EV to EBITDA
10.83
EV to Capital Employed
0.86
EV to Sales
0.90
PEG Ratio
0.15
Dividend Yield
0.03%
ROCE (Latest)
3.62%
ROE (Latest)
9.05%
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
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -3.87% (YoY
CASH AND EQV(HY)
Highest at JPY 3,032.52 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 205.44 %
NET SALES(Q)
Highest at JPY 6,857 MM
-15What is not working for the Company
INTEREST(HY)
At JPY 74.24 MM has Grown at 61.17%
NET PROFIT(HY)
At JPY 142.3 MM has Grown at -29.13%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.04%
Here's what is working for Nitto Seimo Co., Ltd.
Net Sales
Highest at JPY 6,857 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 3,032.52 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 205.44 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -3.87% (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
Depreciation
Highest at JPY 273.69 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Nitto Seimo Co., Ltd.
Interest
At JPY 40.23 MM has Grown at 18.27%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 40.23 MM
in the last five periods and Increased by 18.27% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
Fallen at -42.85%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Debtors Turnover Ratio
Lowest at 3.04%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






