NOMURA Co., Ltd. (9716) 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

NOMURA Co., Ltd.

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Why is NOMURA Co., Ltd. ?

High Management Efficiency with a high ROE of 7.99%

Company has very low debt and has enough cash to service the debt requirements

With a growth in Net Profit of 399.01%, the company declared Very Positive results in May 25

NET PROFIT(HY) At JPY 7,530.85 MM has Grown at 256.85%
NET SALES(HY) At JPY 96,837 MM has Grown at 42.18%
PRE-TAX PROFIT(Q) At JPY 4,570 MM has Grown at 316.97%

With ROE of 12.44%, it has a very attractive valuation with a 1.95 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 50.68%, its profits have risen by 67.7% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 50.68% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to NOMURA Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is NOMURA Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

NOMURA Co., Ltd.

50.68%

1.95

26.23%

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)

0.90%

EBIT Growth (5y)

-4.30%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

2.67

Tax Ratio

28.20%

Dividend Payout Ratio

52.81%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

41.89%

ROE (avg)

7.99%

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

1.95

EV to EBIT

8.36

EV to EBITDA

7.34

EV to Capital Employed

3.24

EV to Sales

0.50

PEG Ratio

0.23

Dividend Yield

0.11%

ROCE (Latest)

38.79%

ROE (Latest)

12.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

30What is working for the Company

NET PROFIT(HY)

At JPY 7,530.85 MM has Grown at 256.85%

NET SALES(HY)

At JPY 96,837 MM has Grown at 42.18%

PRE-TAX PROFIT(Q)

At JPY 4,570 MM has Grown at 316.97%

ROCE(HY)

Highest at 18.04%

RAW MATERIAL COST(Y)

Fallen by -28.66% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 99.72%

OPERATING PROFIT MARGIN(Q)

Highest at 11.91 %

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 61,006 MM

DEBT-EQUITY RATIO (HY)

Highest at -54.01 %

Here's what is working for NOMURA Co., Ltd.

Pre-Tax Profit

At JPY 4,570 MM has Grown at 316.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,008.85 MM has Grown at 408.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 40,815 MM has Grown at 40.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit Margin

Highest at 11.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 99.72%

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 -28.66% (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 331 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for NOMURA Co., Ltd.

Cash and Eqv

Lowest at JPY 61,006 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -54.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio