THE NIPPON ROAD CO., LTD. (1884) 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

Mitsubishi Kakoki Kaisha, Ltd.

Matsui Construction Co., Ltd.

Kyowanissei Co., Ltd.

Novac Co., Ltd.

THE NIPPON ROAD CO., LTD.

Kitano Construction Corp.

Daiseki Eco. Solution Co., Ltd.

The Takigami Steel Construction Co., Ltd.

MIYAJI ENGINEERING GROUP, INC.

Lib Work Co., Ltd.

KOZO KEIKAKU ENGINEERING, Inc.

Why is THE NIPPON ROAD CO., LTD. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 2.01% and Operating profit at 5.54% over the last 5 years

Positive results in Jun 25

PRE-TAX PROFIT(Q) At JPY 1,786 MM has Grown at 542.45%
NET PROFIT(Q) At JPY 1,172 MM has Grown at 965.45%
ROCE(HY) Highest at 7.37%

With ROE of 6.35%, it has a very attractive valuation with a 1.06 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 53.36%, its profits have risen by 22.6% ; the PEG ratio of the company is 0.7

Market Beating Performance

The stock has generated a return of 53.36% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.92%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to THE NIPPON ROAD 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 THE NIPPON ROAD CO., LTD. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

THE NIPPON ROAD CO., LTD.

53.36%

1.94

22.12%

Japan Nikkei 225

28.54%

1.16

25.78%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.01%

EBIT Growth (5y)

5.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.48

Tax Ratio

33.08%

Dividend Payout Ratio

41.69%

Pledged Shares

Institutional Holding

ROCE (avg)

12.15%

ROE (avg)

6.42%

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

1.06

EV to EBIT

7.87

EV to EBITDA

5.62

EV to Capital Employed

1.08

EV to Sales

0.47

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

13.75%

ROE (Latest)

6.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 1,786 MM has Grown at 542.45%

NET PROFIT(Q)

At JPY 1,172 MM has Grown at 965.45%

ROCE(HY)

Highest at 7.37%

RAW MATERIAL COST(Y)

Fallen by -52.25% (YoY

CASH AND EQV(HY)

Highest at JPY 87,883 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.35%

-9What is not working for the Company

INTEREST(9M)

At JPY 31 MM has Grown at 24%

INVENTORY TURNOVER RATIO(HY)

Lowest at 97.19%

Here's what is working for THE NIPPON ROAD CO., LTD.

Pre-Tax Profit

At JPY 1,786 MM has Grown at 542.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,172 MM has Grown at 965.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 87,883 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.35%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -52.25% (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 NIPPON ROAD CO., LTD.

Interest

At JPY 23 MM has Grown at 76.92%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 97.19%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio