NTN Corp. (6472) 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

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NTN Corp.

Why is NTN Corp. ?

Poor Management Efficiency with a low ROCE of 2.92%

The company has been able to generate a Return on Capital Employed (avg) of 2.92% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.85% and Operating profit at 20.56% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.80% signifying low profitability per unit of shareholders funds

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

NET PROFIT(HY) At JPY -1,998 MM has Grown at -125.13%
ROCE(HY) Lowest at -8.98%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.59%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 52.65%, its profits have fallen by -122.4%
At the current price, the company has a high dividend yield of 0.2

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 Auto Components & Equipments)

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

Is NTN Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NTN Corp.

52.65%

0.57

31.20%

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)

4.85%

EBIT Growth (5y)

20.56%

EBIT to Interest (avg)

1.90

Debt to EBITDA (avg)

5.11

Net Debt to Equity (avg)

0.96

Sales to Capital Employed (avg)

1.33

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

3.13%

ROE (avg)

3.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.48

EV to EBIT

18.64

EV to EBITDA

5.53

EV to Capital Employed

0.74

EV to Sales

0.41

PEG Ratio

Dividend Yield

0.24%

ROCE (Latest)

3.95%

ROE (Latest)

-1.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 63,297 MM

NET PROFIT(Q)

At JPY 1,190 MM has Grown at 595.91%

RAW MATERIAL COST(Y)

Fallen by -9.26% (YoY

PRE-TAX PROFIT(Q)

At JPY 4,032 MM has Grown at 83.27%

EPS(Q)

Highest at JPY 1.99

-12What is not working for the Company

NET PROFIT(HY)

At JPY -1,998 MM has Grown at -125.13%

ROCE(HY)

Lowest at -8.98%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.59%

NET SALES(Q)

Lowest at JPY 199,039 MM

Here's what is working for NTN Corp.

Net Profit

At JPY 1,190 MM has Grown at 595.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 63,297 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)

Pre-Tax Profit

At JPY 4,032 MM has Grown at 83.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 1.99

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -9.26% (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 NTN Corp.

Net Sales

Lowest at JPY 199,039 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 2.59%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio