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

Mitsubishi Kakoki Kaisha, Ltd.

SPACE CO., LTD.

Novac Co., Ltd.

Kitano Construction Corp.

Matsui Construction Co., Ltd.

Tomoe Corp.

The Takigami Steel Construction Co., Ltd.

Daiseki Eco. Solution Co., Ltd.

MIYAJI ENGINEERING GROUP, INC.

Pasco Corp.

KOZO KEIKAKU ENGINEERING, Inc.

Why is Novac Co., Ltd. ?

The company has declared Positive results for the last 4 consecutive quarters

ROCE(HY) Highest at 6.37%
RAW MATERIAL COST(Y) Fallen by -10.93% (YoY)
NET SALES(Q) Highest at JPY 9,504.25 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 -3.63%, 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 -3.63% 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 hold?

Overall Portfolio exposure to Novac Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Novac Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Novac Co., Ltd.

-3.63%

-0.86

18.09%

Japan Nikkei 225

58.07%

1.98

29.31%

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

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly 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

18What is working for the Company

ROCE(HY)

Highest at 6.37%

RAW MATERIAL COST(Y)

Fallen by -10.93% (YoY

NET SALES(Q)

Highest at JPY 9,504.25 MM

OPERATING PROFIT(Q)

Highest at JPY 946.37 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.96 %

PRE-TAX PROFIT(Q)

Highest at JPY 756 MM

NET PROFIT(Q)

Highest at JPY 553.9 MM

EPS(Q)

Highest at JPY 107.46

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -1.4 %

INTEREST(Q)

Highest at JPY 28.3 MM

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

Net Sales

Highest at JPY 9,504.25 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 946.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.96 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 756 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 553.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 107.46

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -10.93% (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 28.3 MM has Grown at 53.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 28.3 MM

in the last five periods and Increased by 53.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -1.4 %

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