The Nisshin OilliO Group, Ltd. (2602) 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

Fuji Oil Holdings, Inc.

NIPPN Corp.

Kagome Co., Ltd.

Toyo Suisan Kaisha, Ltd.

Yamazaki Baking Co., Ltd.

The Nisshin OilliO Group, Ltd.

Morinaga & Co., Ltd.

ARIAKE JAPAN Co., Ltd.

Meiji Holdings Co., Ltd.

CALBEE, Inc.

House Foods Group, Inc.

Why is The Nisshin OilliO Group, Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.31% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at JPY 9,634 MM
INTEREST(Q) Highest at JPY 872 MM
PRE-TAX PROFIT(Q) At JPY 6,286 MM has Fallen at -33.62%

With ROCE of 7.36%, it has a very attractive valuation with a 0.89 Enterprise value to Capital Employed

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 15.44%, its profits have fallen by -4.7%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 15.44% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Nisshin OilliO Group, Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is The Nisshin OilliO Group, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Nisshin OilliO Group, Ltd.

15.44%

0.82

19.31%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.75%

EBIT Growth (5y)

7.93%

EBIT to Interest (avg)

21.12

Debt to EBITDA (avg)

2.99

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.86

Tax Ratio

28.81%

Dividend Payout Ratio

45.41%

Pledged Shares

Institutional Holding

ROCE (avg)

6.60%

ROE (avg)

7.31%

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

0.85

EV to EBIT

12.13

EV to EBITDA

7.85

EV to Capital Employed

0.89

EV to Sales

0.44

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

7.36%

ROE (Latest)

7.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

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

6What is working for the Company

NET PROFIT(9M)

Higher at JPY 23,664.29 MM

CASH AND EQV(HY)

Highest at JPY 50,140 MM

NET SALES(Q)

Highest at JPY 147,044 MM

OPERATING PROFIT(Q)

Highest at JPY 9,489 MM

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 9,634 MM

INTEREST(Q)

Highest at JPY 872 MM

PRE-TAX PROFIT(Q)

At JPY 6,286 MM has Fallen at -33.62%

NET PROFIT(Q)

At JPY 4,080 MM has Fallen at -35.88%

Here's what is working for The Nisshin OilliO Group, Ltd.

Net Sales

Highest at JPY 147,044 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 9,489 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Cash and Eqv

Highest at JPY 50,140 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 2,941 MM

in the last five periods

MOJO 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 Nisshin OilliO Group, Ltd.

Operating Cash Flow

Lowest at JPY 9,634 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 872 MM has Grown at 17.2%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 872 MM

in the last five periods and Increased by 17.2% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 6,286 MM has Fallen at -33.62%

over average net sales of the previous four periods of JPY 9,469.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 4,080 MM has Fallen at -35.88%

over average net sales of the previous four periods of JPY 6,363.03 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)