Nomura Research Institute Ltd. (4307) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

OBIC Co. Ltd.

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Fujitsu Ltd.

NS Solutions Corp.

Nomura Research Institute Ltd.

TIS, Inc. (Japan)

SHIFT, Inc.

Fuji Soft, Inc.

NEC Networks & System Integration Corp.

Why is Nomura Research Institute Ltd. ?

Flat results in Jun 26

NET PROFIT(HY) At JPY -38,730 MM has Grown at -180.74%
ROCE(HY) Lowest at 4.52%

With ROCE of 29.91%, it has a very expensive valuation with a 5.23 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 -23.01%, its profits have fallen by -83.3%

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.01% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nomura Research Institute Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Nomura Research Institute Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nomura Research Institute Ltd.

-23.01%

0.25

49.44%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.46%

EBIT Growth (5y)

12.90%

EBIT to Interest (avg)

24.59

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.12

Tax Ratio

74.58%

Dividend Payout Ratio

289.26%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

24.86%

ROE (avg)

20.46%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

166

Industry P/E

Price to Book Value

6.03

EV to EBIT

17.48

EV to EBITDA

13.13

EV to Capital Employed

5.23

EV to Sales

3.32

PEG Ratio

Dividend Yield

ROCE (Latest)

29.91%

ROE (Latest)

3.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 160,201 MM

NET PROFIT(Q)

At JPY 29,215 MM has Grown at 665.94%

INTEREST COVERAGE RATIO(Q)

Highest at 5,286.76

RAW MATERIAL COST(Y)

Fallen by -2.36% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -0.17 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.71 times

PRE-TAX PROFIT(Q)

Highest at JPY 42,589 MM

-10What is not working for the Company

NET PROFIT(HY)

At JPY -38,730 MM has Grown at -180.74%

ROCE(HY)

Lowest at 4.52%

Here's what is working for Nomura Research Institute Ltd.

Net Profit

At JPY 29,215 MM has Grown at 665.94%

over average net sales of the previous four periods of JPY 3,814.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 160,201 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Interest Coverage Ratio

Highest at 5,286.76

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 42,589 MM has Grown at 195%

over average net sales of the previous four periods of JPY 14,437 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 42,589 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Lowest at -0.17 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.71 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.36% (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