Why is THE NIHON SEIMA CO., LTD. ?
1
Poor Management Efficiency with a low ROE of 7.37%
- The company has been able to generate a Return on Equity (avg) of 7.37% signifying low profitability per unit of shareholders funds
2
With a fall in Net Sales of -23.56%, the company declared Very Negative results in Dec 25
- The company has declared negative results for the last 2 consecutive quarters
- The company has declared negative results in Dec 24 after 4 consecutive negative quarters
- NET SALES(Q) At JPY 632.46 MM has Fallen at -23.56%
- NET PROFIT(Q) At JPY -2.7 MM has Fallen at -101.72%
- RAW MATERIAL COST(Y) Grown by 9.63% (YoY)
3
Underperformed the market in the last 1 year
- The stock has generated a return of 25.82% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is THE NIHON SEIMA CO., LTD. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
THE NIHON SEIMA CO., LTD.
-100.0%
0.37
50.95%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
3.26%
EBIT Growth (5y)
56.30%
EBIT to Interest (avg)
21.44
Debt to EBITDA (avg)
0.40
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
1.49
Tax Ratio
34.36%
Dividend Payout Ratio
15.14%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.73%
ROE (avg)
7.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.96
EV to EBIT
5.62
EV to EBITDA
4.58
EV to Capital Employed
0.94
EV to Sales
0.33
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
16.66%
ROE (Latest)
6.92%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
13What is working for the Company
NET PROFIT(HY)
Higher at JPY 583.53 MM
ROCE(HY)
Highest at 28.34%
-33What is not working for the Company
NET SALES(Q)
At JPY 632.46 MM has Fallen at -23.56%
NET PROFIT(Q)
At JPY -2.7 MM has Fallen at -101.72%
RAW MATERIAL COST(Y)
Grown by 9.63% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 1.25 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 0 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.96 times
INTEREST(Q)
Highest at JPY 6.78 MM
PRE-TAX PROFIT(Q)
Lowest at JPY -4.65 MM
Here's what is working for THE NIHON SEIMA CO., LTD.
Depreciation
Highest at JPY 23.25 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 23.25 MM has Grown at 222.53%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for THE NIHON SEIMA CO., LTD.
Net Sales
At JPY 632.46 MM has Fallen at -23.56%
over average net sales of the previous four periods of JPY 827.37 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY -4.65 MM has Fallen at -102.03%
over average net sales of the previous four periods of JPY 229.36 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -2.7 MM has Fallen at -101.72%
over average net sales of the previous four periods of JPY 157.35 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 6.78 MM has Grown at 62.37%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 6.78 MM
in the last five periods and Increased by 62.37% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
Lowest at JPY -4.65 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Debt-Equity Ratio
Highest at 1.25 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 4.96 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 9.63% (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






