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

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

INVENTORY TURNOVER RATIO(HY) Lowest at 2.53 times
NET PROFIT(Q) Fallen at -35.92%

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 26.81%, 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.

26.81%

0.10

35.46%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

1.34

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

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

INTEREST COVERAGE RATIO(Q)

Highest at 930.46

RAW MATERIAL COST(Y)

Fallen by -8.3% (YoY

NET PROFIT(9M)

Higher at JPY 4,731.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at 71.9 %

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.53 times

NET PROFIT(Q)

Fallen at -35.92%

Here's what is working for NTN Corp.

Interest Coverage Ratio

Highest at 930.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 71.9 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.3% (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.

Inventory Turnover Ratio

Lowest at 2.53 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Profit

Fallen at -35.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)