ScoreComparison
Why is The Nippon Signal Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of -0.88% over the last 5 years
3
Flat results in Jun 25
- INTEREST(HY) At JPY 71 MM has Grown at 162.96%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,269.23
- RAW MATERIAL COST(Y) Grown by 7.83% (YoY)
4
With ROE of 7.96%, it has a very attractive valuation with a 0.72 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 39.02%, its profits have risen by 48.4% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0
5
Market Beating Performance
- The stock has generated a return of 39.02% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%
Real-Time Research ReportHow much should you hold?
- 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, Medium Return
Absolute
Risk Adjusted
Volatility
The Nippon Signal Co., Ltd.
39.02%
1.18
21.54%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.88%
EBIT Growth (5y)
2.08%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.75
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.88
Tax Ratio
27.16%
Dividend Payout Ratio
31.54%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.59%
ROE (avg)
5.85%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.72
EV to EBIT
8.23
EV to EBITDA
6.50
EV to Capital Employed
0.74
EV to Sales
0.76
PEG Ratio
0.19
Dividend Yield
0.05%
ROCE (Latest)
8.94%
ROE (Latest)
7.96%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 12,477 MM
ROCE(HY)
Highest at 8.22%
DEBT-EQUITY RATIO
(HY)
Lowest at -6.4 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.04%
DEBTORS TURNOVER RATIO(HY)
Highest at 2.15%
-22What is not working for the Company
INTEREST(HY)
At JPY 71 MM has Grown at 162.96%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,269.23
RAW MATERIAL COST(Y)
Grown by 7.83% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 330 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.83 %
PRE-TAX PROFIT(Q)
Lowest at JPY 237 MM
NET PROFIT(Q)
Lowest at JPY -400 MM
EPS(Q)
Lowest at JPY -6.41
Here's what is working for The Nippon Signal Co., Ltd.
Operating Cash Flow
Highest at JPY 12,477 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Debt-Equity Ratio
Lowest at -6.4 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.04%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 2.15%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 820 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for The Nippon Signal Co., Ltd.
Interest
At JPY 71 MM has Grown at 162.96%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 237 MM has Fallen at -61.65%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -400 MM has Fallen at -20,100%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest Coverage Ratio
Lowest at 1,269.23
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at JPY 330 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 1.83 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 237 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -400 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -6.41
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Raw Material Cost
Grown by 7.83% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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