Why is NittoBest Corp. ?
1
Poor Management Efficiency with a low ROCE of 2.63%
- The company has been able to generate a Return on Capital Employed (avg) of 2.63% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- 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 3.06% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 0.58% and Operating profit at -18.64% over the last 5 years
4
Flat results in Dec 25
- INTEREST(Q) At JPY 40.23 MM has Grown at 16.69%
5
With ROCE of 2.03%, it has a expensive valuation with a 0.69 Enterprise value to Capital Employed
- 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 -1.81%, its profits have risen by 50.8% ; the PEG ratio of the company is 0.4
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is NittoBest Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
NittoBest Corp.
-100.0%
-0.77
9.42%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
0.58%
EBIT Growth (5y)
-18.64%
EBIT to Interest (avg)
5.31
Debt to EBITDA (avg)
3.29
Net Debt to Equity (avg)
0.46
Sales to Capital Employed (avg)
2.19
Tax Ratio
24.09%
Dividend Payout Ratio
37.73%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.71%
ROE (avg)
3.06%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
0.54
EV to EBIT
33.87
EV to EBITDA
7.32
EV to Capital Employed
0.69
EV to Sales
0.29
PEG Ratio
0.39
Dividend Yield
NA
ROCE (Latest)
2.03%
ROE (Latest)
2.74%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
4What is working for the Company
ROCE(HY)
Highest at 2.67%
INVENTORY TURNOVER RATIO(HY)
Highest at 6.9 times
NET SALES(Q)
Highest at JPY 15,403.87 MM
-10What is not working for the Company
INTEREST(Q)
At JPY 40.23 MM has Grown at 16.69%
Here's what is working for NittoBest Corp.
Net Sales
Highest at JPY 15,403.87 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Inventory Turnover Ratio
Highest at 6.9 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 415.91 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 NittoBest Corp.
Interest
At JPY 40.23 MM has Grown at 16.69%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






