Shin Nippon Air Technologies Co., Ltd. (1952) 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

Shin Nippon Air Technologies Co., Ltd.

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Why is Shin Nippon Air Technologies Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.85%

Healthy long term growth as Operating profit has grown by an annual rate 13.42%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 16.87%, it has a very attractive valuation with a 2.20 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 3.99%, its profits have risen by 84.8%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Shin Nippon Air Technologies Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

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

Is Shin Nippon Air Technologies Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shin Nippon Air Technologies Co., Ltd.

3.99%

1.03

43.76%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.66%

EBIT Growth (5y)

13.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.90

Tax Ratio

27.98%

Dividend Payout Ratio

41.08%

Pledged Shares

Institutional Holding

ROCE (avg)

19.62%

ROE (avg)

10.85%

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

2.20

EV to EBIT

10.02

EV to EBITDA

9.57

EV to Capital Employed

2.58

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

25.79%

ROE (Latest)

16.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

4What is working for the Company

CASH AND EQV(HY)

Highest at JPY 50,329 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.04 times

PRE-TAX PROFIT(Q)

At JPY 4,139 MM has Grown at 75.38%

NET PROFIT(Q)

At JPY 2,739 MM has Grown at 73.46%

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 28,375

RAW MATERIAL COST(Y)

Grown by 26.92% (YoY

INTEREST(Q)

Highest at JPY 4 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,135 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.2 %

Here's what is working for Shin Nippon Air Technologies Co., Ltd.

Pre-Tax Profit

At JPY 4,139 MM has Grown at 75.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,739 MM has Grown at 73.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 50,329 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.04 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shin Nippon Air Technologies Co., Ltd.

Interest

At JPY 4 MM has Grown at 100%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 28,375

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 4 MM

in the last five periods and Increased by 100% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 1,135 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 26.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at JPY 0.77 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income