NIHON PARKERIZING CO

The company manufactures and supplies surface treatment chemicals internationally. It provides chemicals for cleaning, corrosion resistance, painting, and lubrication. Emulsion type rolling oil is also offered for steel rolling and cooling applications. Technical support services are provided along with rust prevention, heat treatment, and rust stabilizing treatments. Additional services include conversion coating, solid lubricant, and rust proof coatings. The company also provides metal surface treatment and coating equipment, as well as building maintenance services.

Overview

Sector

Chemicals

Target Price

1720.9 JPY

Current Price

1396.0 JPY

Potential

23%

Strengths

Current Price to Earnings Ratio (12.22) is lower than the sector mean (34.88).
Price to book ratio (0.82) is lower than the sector mean (6.31).
The company has low debt. Net Debt to EBITDA Ratio is -2.91 and it is lower than the sector mean.
EV/EBITDA (3.12) is lower than the sector mean (18.32).
EV/EBIT (4.20) is lower than the sector mean.
Strong EBITDA Margin of 20.10%.

Weaknesses

The company have lower returns than the sector in which it operates. ROIC (6.14%) is significantly lower than the sector mean (15.25%).
The Price to Free Cash Flow ratio (100.00) is significantly higher than the sector mean.

Key Financial Data

Indicator	Value
PER	12.2
EV/EBITDA	3.1
Price/Free Cash Flow'	100.0
ROIC	6.1%
Net Debt/EBITDA	-2.9