NKK Switches Co. Ltd. (6943) 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

Kawaden Corp.

The Kodensha, Co., Ltd.

Nippon Gear Co., Ltd.

Canare Electric Co., Ltd.

Mitsuboshi Co., Ltd.

Nippon Tungsten Co., Ltd.

Fuji Electric Industry Co., Ltd.

NKK Switches Co. Ltd.

Otani Kogyo Co., Ltd.

Almedio, Inc.

Origin Co., Ltd.

Why is NKK Switches Co. Ltd. ?

Poor Management Efficiency with a low ROE of 3.44%

The company has been able to generate a Return on Equity (avg) of 3.44% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.44%

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(HY) At JPY -299.97 MM has Grown at -448.64%
NET SALES(HY) At JPY 3,730.93 MM has Grown at -9.55%
ROCE(HY) Lowest at -3.42%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 2.85%, its profits have fallen by -203.8%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 2.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

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 Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NKK Switches Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NKK Switches Co. Ltd.

2.85%

-0.73

19.61%

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)

0.81%

EBIT Growth (5y)

-239.57%

EBIT to Interest (avg)

75.12

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.70

Tax Ratio

32.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.99%

ROE (avg)

3.44%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.28

EV to EBIT

2.23

EV to EBITDA

-12.61

EV to Capital Employed

-0.12

EV to Sales

-0.13

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-3.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 2 MM has Grown at 102.62%

NET PROFIT(Q)

At JPY -12.34 MM has Grown at 87.79%

-18What is not working for the Company

NET PROFIT(HY)

At JPY -299.97 MM has Grown at -448.64%

NET SALES(HY)

At JPY 3,730.93 MM has Grown at -9.55%

ROCE(HY)

Lowest at -3.42%

RAW MATERIAL COST(Y)

Grown by 9.04% (YoY

CASH AND EQV(HY)

Lowest at JPY 9,077.11 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.83%

Here's what is working for NKK Switches Co. Ltd.

Pre-Tax Profit

At JPY 2 MM has Grown at 102.62%

over average net sales of the previous four periods of JPY -76.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -12.34 MM has Grown at 87.79%

over average net sales of the previous four periods of JPY -101.02 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Here's what is not working for NKK Switches Co. Ltd.

Net Sales

At JPY 3,730.93 MM has Grown at -9.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 9,077.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 5.83%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at JPY 29.41 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income