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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nakayamafuku Co., Ltd.

Kimura Co., Ltd.

Nousouken Corp.

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 negative results in Jan 70 after 11 consecutive negative quarters

PRE-TAX PROFIT(Q) At JPY 10.21 MM has Fallen at -84.47%
NET PROFIT(Q) At JPY 4.72 MM has Fallen at -93.27%
ROCE(HY) Lowest at -5.51%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 133.13%, its profits have risen by 218% ; the PEG ratio of the company is 0.3

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 Trading & Distributors)

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

Is Nousouken Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nousouken Corp.

133.13%

2.72

67.07%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

5.47

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

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

1What is working for the Company

NET SALES(Q)

Highest at JPY 2,271.26 MM

-23What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 10.21 MM has Fallen at -84.47%

NET PROFIT(Q)

At JPY 4.72 MM has Fallen at -93.27%

ROCE(HY)

Lowest at -5.51%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,152.87

RAW MATERIAL COST(Y)

Grown by 6% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 67.15 times

OPERATING PROFIT(Q)

Lowest at JPY 21.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.97 %

Here's what is working for Nousouken Corp.

Net Sales

Highest at JPY 2,271.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for Nousouken Corp.

Pre-Tax Profit

At JPY 10.21 MM has Fallen at -84.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 4.72 MM has Fallen at -93.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 3,152.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 21.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 67.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6% (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