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
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 21.44
- Poor long term growth as Net Sales has grown by an annual rate of -2.93% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 21.44
- The company has been able to generate a Return on Equity (avg) of 7.37% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.93% over the last 5 years
4
The company has declared negative results for the last 3 consecutive quarters
- NET SALES(HY) At JPY 1,231.09 MM has Grown at -43.32%
- PRE-TAX PROFIT(Q) At JPY 17.21 MM has Fallen at -91.47%
- NET PROFIT(Q) At JPY 10.55 MM has Fallen at -92.77%
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?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
THE NIHON SEIMA CO., LTD.
-16.61%
0.49
36.03%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.93%
EBIT Growth (5y)
-215.02%
EBIT to Interest (avg)
20.34
Debt to EBITDA (avg)
0.18
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
1.33
Tax Ratio
27.73%
Dividend Payout Ratio
3.02%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.59%
ROE (avg)
7.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
4
Industry P/E
Price to Book Value
1.24
EV to EBIT
-78.64
EV to EBITDA
78.14
EV to Capital Employed
1.24
EV to Sales
0.93
PEG Ratio
0.04
Dividend Yield
NA
ROCE (Latest)
-1.57%
ROE (Latest)
27.70%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -28.63% (YoY
NET SALES(Q)
At JPY 673.45 MM has Grown at 12.26%
OPERATING PROFIT(Q)
Highest at JPY 39.71 MM
OPERATING PROFIT MARGIN(Q)
Highest at 5.9 %
-31What is not working for the Company
NET SALES(HY)
At JPY 1,231.09 MM has Grown at -43.32%
PRE-TAX PROFIT(Q)
At JPY 17.21 MM has Fallen at -91.47%
NET PROFIT(Q)
At JPY 10.55 MM has Fallen at -92.77%
DEBT-EQUITY RATIO
(HY)
Highest at 2.5 %
INTEREST(Q)
At JPY 4.23 MM has Grown at inf%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.3 times
Here's what is working for THE NIHON SEIMA CO., LTD.
Net Sales
At JPY 673.45 MM has Grown at 12.26%
over average net sales of the previous four periods of JPY 599.92 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 39.71 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 5.9 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -28.63% (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 THE NIHON SEIMA CO., LTD.
Pre-Tax Profit
At JPY 17.21 MM has Fallen at -91.47%
over average net sales of the previous four periods of JPY 201.91 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 10.55 MM has Fallen at -92.77%
over average net sales of the previous four periods of JPY 145.92 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 4.23 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 2.5 % and Grown
In each half year 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
Debtors Turnover Ratio
Lowest at 3.3 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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