Nousouken Corp. (3541) 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

Denkyo Group Holdings Co. Ltd.

Naito & Co., Ltd.

Otake Corp.

Mansei Corp.

Kimura Co., Ltd.

TORQ, Inc.

A&A Material Corp.

Nousouken Corp.

Nakayamafuku Co., Ltd.

Harima-Kyowa Co., Ltd.

Sanrin Co., Ltd.

Why is Nousouken Corp. ?

Poor Management Efficiency with a low ROE of 4.08%

The company has been able to generate a Return on Equity (avg) of 4.08% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 11 consecutive quarters

NET PROFIT(9M) At JPY 88.87 MM has Grown at 85.94%
ROCE(HY) Highest at 14.81%
RAW MATERIAL COST(Y) Fallen by -0.88% (YoY)

With ROE of 14.61%, it has a attractive valuation with a 7.80 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 63.30%, its profits have risen by 218% ; the PEG ratio of the company is 0.3

Market Beating Performance

The stock has generated a return of 63.30% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nousouken Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Nousouken Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nousouken Corp.

62.88%

0.95

65.48%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.69%

EBIT Growth (5y)

51.50%

EBIT to Interest (avg)

-2.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

4.90

Tax Ratio

18.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

14.13%

ROE (avg)

4.08%

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

7.80

EV to EBIT

43.19

EV to EBITDA

31.56

EV to Capital Employed

18.64

EV to Sales

0.96

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

43.15%

ROE (Latest)

14.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

11What is working for the Company

NET PROFIT(9M)

At JPY 88.87 MM has Grown at 85.94%

ROCE(HY)

Highest at 14.81%

RAW MATERIAL COST(Y)

Fallen by -0.88% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.45%

NET SALES(Q)

At JPY 2,118.25 MM has Grown at 17.56%

-7What is not working for the Company

INTEREST(9M)

At JPY 1.93 MM has Grown at 5.8%

NET PROFIT(Q)

Lowest at JPY 2.61 MM

EPS(Q)

Lowest at JPY 0.13

Here's what is working for Nousouken Corp.

Net Sales

At JPY 2,118.25 MM has Grown at 17.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 7.45%

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 -0.88% (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 16.43 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 Nousouken Corp.

Net Profit

At JPY 2.61 MM has Fallen at -64.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 1.93 MM has Grown at 5.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY 2.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 0.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)