NittoBest Corp. (2877) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nitta Gelatin, Inc.

Miyoshi Oil & Fat Co., Ltd.

Shinobu Foods Products Co., Ltd.

Yamae Group Holdings Co., Ltd.

Yamami Co.

AOHATA Corp.

NittoBest Corp.

S&B Foods Inc.

DyDo Group Holdings, Inc.

Rock Field Co., Ltd.

Yoshimura Food Holdings KK

Why is NittoBest Corp. ?

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)

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

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

Positive results in Jun 25

PRE-TAX PROFIT(Q) At JPY 38.62 MM has Grown at 509.85%
NET PROFIT(Q) At JPY 24.91 MM has Grown at 390.69%
ROCE(HY) Highest at 2.65%

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 -7.06%, its profits have risen by 50.8% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NittoBest Corp. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NittoBest Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NittoBest Corp.

-7.06%

-1.07

9.15%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

2.16

Tax Ratio

24.09%

Dividend Payout Ratio

37.73%

Pledged Shares

Institutional Holding

ROCE (avg)

2.71%

ROE (avg)

3.06%

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

0.54

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

ROCE (Latest)

2.03%

ROE (Latest)

2.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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

20What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 38.62 MM has Grown at 509.85%

NET PROFIT(Q)

At JPY 24.91 MM has Grown at 390.69%

ROCE(HY)

Highest at 2.65%

RAW MATERIAL COST(Y)

Fallen by 1.35% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.8%

-10What is not working for the Company

INTEREST(HY)

At JPY 81.46 MM has Grown at 30.53%

OPERATING PROFIT(Q)

Lowest at JPY 410.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.93 %

Here's what is working for NittoBest Corp.

Pre-Tax Profit

At JPY 38.62 MM has Grown at 509.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 24.91 MM has Grown at 390.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 6.8%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.35% (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 NittoBest Corp.

Interest

At JPY 81.46 MM has Grown at 30.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 410.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at JPY 1.67 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income