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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

SRA Holdings, Inc.

Tsuzuki Denki Co., Ltd.

m-up holdings, Inc.

Core Concept Technologies, Inc.

SB Technology Corp.

NSW, Inc. (Japan)

Softcreate Holdings Corp.

TRE Holdings Corp.

Computer Engineering & Consulting Ltd.

JFE Systems, Inc.

Smaregi, Inc.

Why is NSW, Inc. (Japan) ?

Strong Long Term Fundamental Strength with a 9.64% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 39.50% signifying high profitability per unit of total capital (equity and debt)

With ROE of 10.34%, it has a very attractive valuation with a 1.14 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 -20.16%, its profits have fallen by -15.5%

Real-Time Research Report

Verdict Report

How much should you buy?

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)

-20.16%

-0.75

29.63%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.50%

EBIT Growth (5y)

9.64%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

1.51

Tax Ratio

32.54%

Dividend Payout Ratio

34.58%

Pledged Shares

Institutional Holding

ROCE (avg)

39.50%

ROE (avg)

12.45%

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

1.14

EV to EBIT

3.41

EV to EBITDA

3.15

EV to Capital Employed

1.32

EV to Sales

0.42

PEG Ratio

Dividend Yield

ROCE (Latest)

38.84%

ROE (Latest)

10.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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 4,101 MM

CASH AND EQV(HY)

Highest at JPY 38,515 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.67%

-9What is not working for the Company

ROCE(HY)

Lowest at 10.54%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.5%

OPERATING PROFIT(Q)

Lowest at JPY 985 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.61 %

PRE-TAX PROFIT(Q)

Lowest at JPY 890 MM

NET PROFIT(Q)

Lowest at JPY 605 MM

EPS(Q)

Lowest at JPY 40.61

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

Operating Cash Flow

Highest at JPY 4,101 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)

Cash and Eqv

Highest at JPY 38,515 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 14.67%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for NSW, Inc. (Japan)

Debtors Turnover Ratio

Lowest at 4.5% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at JPY 985 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 890 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 605 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 40.61

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)