The Nippon Signal Co., Ltd. (6741) 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

New Cosmos Electric Co., Ltd.

The Nippon Signal Co., Ltd.

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Hochiki Corp.

SECURE, Inc. (Japan)

FTGroup Co. Ltd.

Daido Signal Co., Ltd.

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Nohmi Bosai Ltd.

Terilogy Holdings Co., Ltd.

Fenwal Controls of Japan, Ltd.

Why is The Nippon Signal Co., Ltd. ?

With a growth in Operating Profit of 281.73%, the company declared Outstanding results in Jun 26

OPERATING CASH FLOW(Y) Highest at JPY 17,560 MM
PRE-TAX PROFIT(Q) At JPY 3,140 MM has Grown at 1,224.89%
NET PROFIT(Q) At JPY 1,523 MM has Grown at 480.75%

With ROE of 10.14%, it has a very attractive valuation with a 0.92 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 58.29%, its profits have risen by 41.9% ; the PEG ratio of the company is 0.2
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 The Nippon Signal Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is The Nippon Signal Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

The Nippon Signal Co., Ltd.

59.71%

2.60

32.12%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.22%

EBIT Growth (5y)

15.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.72

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.91

Tax Ratio

29.61%

Dividend Payout Ratio

30.13%

Pledged Shares

Institutional Holding

ROCE (avg)

7.26%

ROE (avg)

5.85%

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

0.92

EV to EBIT

9.41

EV to EBITDA

7.04

EV to Capital Employed

0.93

EV to Sales

0.97

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

9.84%

ROE (Latest)

10.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

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

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 17,560 MM

PRE-TAX PROFIT(Q)

At JPY 3,140 MM has Grown at 1,224.89%

NET PROFIT(Q)

At JPY 1,523 MM has Grown at 480.75%

ROCE(HY)

Highest at 12.58%

RAW MATERIAL COST(Y)

Fallen by -37.34% (YoY

CASH AND EQV(HY)

Highest at JPY 30,214 MM

DEBT-EQUITY RATIO (HY)

Lowest at -16.97 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.5 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.43 times

NET SALES(Q)

At JPY 23,554 MM has Grown at 30.41%

-4What is not working for the Company

INTEREST(HY)

At JPY 78 MM has Grown at 9.86%

Here's what is working for The Nippon Signal Co., Ltd.

Pre-Tax Profit

At JPY 3,140 MM has Grown at 1,224.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,523 MM has Grown at 480.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 17,560 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

At JPY 23,554 MM has Grown at 30.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 30,214 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -16.97 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.5 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.43 times

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 -37.34% (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 Signal Co., Ltd.

Interest

At JPY 78 MM has Grown at 9.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)