NSW, Inc. (Japan) (9739) 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

SRA Holdings, Inc.

m-up holdings, Inc.

Computer Engineering & Consulting Ltd.

Smaregi, Inc.

Softcreate Holdings Corp.

NSW, Inc. (Japan)

Core Concept Technologies, Inc.

Tsuzuki Denki Co., Ltd.

JFE Systems, Inc.

TRE Holdings Corp.

SB Technology Corp.

Why is NSW, Inc. (Japan) ?

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at -45.07 %
OPERATING PROFIT(Q) Lowest at JPY 967 MM
OPERATING PROFIT MARGIN(Q) Lowest at 8.09 %

With ROE of 9.73%, it has a very attractive valuation with a 1.02 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 -4.87%, its profits have fallen by -20%

Below par performance in long term as well as near term

Along with generating -4.87% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NSW, Inc. (Japan) should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is NSW, Inc. (Japan) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NSW, Inc. (Japan)

-100.0%

-1.03

19.65%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.19%

EBIT Growth (5y)

7.07%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

1.46

Tax Ratio

30.01%

Dividend Payout Ratio

50.21%

Pledged Shares

Institutional Holding

ROCE (avg)

37.83%

ROE (avg)

12.71%

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

1.02

EV to EBIT

3.55

EV to EBITDA

3.24

EV to Capital Employed

1.03

EV to Sales

0.37

PEG Ratio

Dividend Yield

ROCE (Latest)

29.05%

ROE (Latest)

9.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 4,153 MM

RAW MATERIAL COST(Y)

Fallen by 1.05% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 14.97 times

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -45.07 %

OPERATING PROFIT(Q)

Lowest at JPY 967 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.09 %

PRE-TAX PROFIT(Q)

Lowest at JPY 868 MM

NET PROFIT(Q)

Lowest at JPY 577 MM

EPS(Q)

Lowest at JPY 38.73

Here's what is working for NSW, Inc. (Japan)

Operating Cash Flow

Highest at JPY 4,153 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio

Highest at 14.97 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.05% (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 NSW, Inc. (Japan)

Operating Profit

Lowest at JPY 967 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 868 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 577 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 38.73

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -45.07 %

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