Why is Nozawa Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of -0.48% and Operating profit at 6.93% over the last 5 years
3
Flat results in Jun 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.87%
- EPS(Q) Lowest at JPY 6.85
4
With ROE of 6.12%, it has a very attractive valuation with a 0.50 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 20.98%, its profits have risen by 2.7% ; the PEG ratio of the company is 3
How much should you hold?
- Overall Portfolio exposure to Nozawa Corp. should be less than 10%
- Overall Portfolio exposure to Building Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nozawa Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nozawa Corp.
20.98%
0.74
19.79%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.48%
EBIT Growth (5y)
6.93%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
1.14
Tax Ratio
32.20%
Dividend Payout Ratio
39.95%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.47%
ROE (avg)
6.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.50
EV to EBIT
2.19
EV to EBITDA
1.48
EV to Capital Employed
0.26
EV to Sales
0.17
PEG Ratio
3.03
Dividend Yield
NA
ROCE (Latest)
12.07%
ROE (Latest)
6.12%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
16What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 101,028.99
RAW MATERIAL COST(Y)
Fallen by -1.78% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 18.45%
NET SALES(Q)
Highest at JPY 5,806.17 MM
OPERATING PROFIT(Q)
Highest at JPY 766.81 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13.21 %
NET PROFIT(Q)
Highest at JPY 854.02 MM
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.87%
EPS(Q)
Lowest at JPY 6.85
Here's what is working for Nozawa Corp.
Interest Coverage Ratio
Highest at 101,028.99
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At JPY 854.02 MM has Grown at 174.98%
over average net sales of the previous four periods of JPY 310.58 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 5,806.17 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 766.81 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 13.21 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at JPY 854.02 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 18.45%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -1.78% (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 Nozawa Corp.
Debtors Turnover Ratio
Lowest at 2.87% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
EPS
Lowest at JPY 6.85
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)






