Risk factor
Modest price volatility
Profitability factor
Slightly undervalued vs peers
About
Nippon Denko Co., Ltd., together with its subsidiaries, engages in the ferroalloys, functional materials, incineration ash resource recovery, aqua solutions, and electric power businesses in Japan. The company offers ferroalloys products, including high and low carbon ferromanganese, silomanganese, and ferrosilicon; warehousing, port cargo handling, and functional materials, such as zirconium and boron oxide, metal hydride and boron alloys, storage alloys, manganese inorganic chemical products, and cathode materials for lithium-ion batteries. It also provides eco-melt systems and the utilization of ECOLAROCK, as well as melting and solidification, detoxification treatment/recycling; and aqua solutions comprising wastewater treatment equipment and pure water production systems. In addition, the company is involved in the electric power business and operates dams and power plants. Nippon Denko Co., Ltd. was founded in 1925 and is based in Chuo, Japan.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is 'cheap' on EV/EBITDA.