Novac Co., Ltd. () 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

The Takigami Steel Construction Co., Ltd.

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Tomoe Corp.

Daiseki Eco. Solution Co., Ltd.

MIYAJI ENGINEERING GROUP, INC.

Novac Co., Ltd.

KOZO KEIKAKU ENGINEERING, Inc.

Pasco Corp.

Why is Novac Co., Ltd. ?

With a fall in Net Sales of -7.77%, the company declared Very Negative results in Jul 26

The company has declared negative results in Jul 26 after 4 consecutive negative quarters
INTEREST(HY) At JPY 44.51 MM has Grown at 174.85%
INTEREST COVERAGE RATIO(Q) Lowest at 649.64
NET SALES(Q) Lowest at JPY 8,092 MM

With ROE of 6.04%, it has a very attractive valuation with a 0.70 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 -4.02%, its profits have risen by 1489.5% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.02% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 Construction)

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

Is Novac Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Novac Co., Ltd.

-4.02%

-0.86

17.98%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.59%

EBIT Growth (5y)

-16.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.31

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

1.49

Tax Ratio

34.55%

Dividend Payout Ratio

107.79%

Pledged Shares

Institutional Holding

ROCE (avg)

10.80%

ROE (avg)

4.69%

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

0.70

EV to EBIT

8.99

EV to EBITDA

8.63

EV to Capital Employed

0.73

EV to Sales

0.43

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

8.08%

ROE (Latest)

6.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.92% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.95 times

-22What is not working for the Company

INTEREST(HY)

At JPY 44.51 MM has Grown at 174.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 649.64

NET SALES(Q)

Lowest at JPY 8,092 MM

OPERATING PROFIT(Q)

Lowest at JPY 105.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.3 %

PRE-TAX PROFIT(Q)

Lowest at JPY 70.83 MM

NET PROFIT(Q)

Lowest at JPY 41.77 MM

EPS(Q)

Lowest at JPY 8.1

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

Debtors Turnover Ratio

Highest at 1.95 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 1.92% (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

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

Interest

At JPY 44.51 MM has Grown at 174.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 70.83 MM has Fallen at -67.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 41.77 MM has Fallen at -70.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 649.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 8,092 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 105.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 70.83 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 41.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 8.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

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