Obayashi Corp. (1802) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

KATITAS Co., Ltd.

Open House Group Co., Ltd.

Obayashi Corp.

Token Corp.

HASEKO Corp.

Iida Group Holdings Co., Ltd.

Daiwa House Industry Co., Ltd.

Sumitomo Forestry Co., Ltd.

Nishimatsu Construction Co., Ltd.

Nagawa Co., Ltd.

Pressance Corp.

Why is Obayashi Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 35.39

Positive results in Jun 25

ROCE(HY) Highest at 12.38%
RAW MATERIAL COST(Y) Fallen by -16.83% (YoY)
NET PROFIT(9M) Higher at JPY 112,540.87 MM

With ROE of 13.44%, it has a very attractive valuation with a 1.34 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 53.97%, its profits have risen by 89.3% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Consistent Returns over the last 3 years

Along with generating 53.97% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Obayashi Corp. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Obayashi Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Obayashi Corp.

55.94%

1386.05

25.32%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.80%

EBIT Growth (5y)

-1.27%

EBIT to Interest (avg)

35.39

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

1.58

Tax Ratio

28.67%

Dividend Payout Ratio

39.73%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

9.52%

ROE (avg)

8.80%

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

1.34

EV to EBIT

10.50

EV to EBITDA

8.61

EV to Capital Employed

1.35

EV to Sales

0.57

PEG Ratio

0.11

Dividend Yield

0.02%

ROCE (Latest)

12.84%

ROE (Latest)

13.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

7What is working for the Company

ROCE(HY)

Highest at 12.38%

RAW MATERIAL COST(Y)

Fallen by -16.83% (YoY

NET PROFIT(9M)

Higher at JPY 112,540.87 MM

CASH AND EQV(HY)

Highest at JPY 874,250 MM

DEBT-EQUITY RATIO (HY)

Lowest at -9.01 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.38%

-15What is not working for the Company

INTEREST(HY)

At JPY 2,522 MM has Grown at 21.37%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,005.91

NET SALES(Q)

Lowest at JPY 523,763 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 26,981 MM

NET PROFIT(Q)

Lowest at JPY 17,873.44 MM

EPS(Q)

Lowest at JPY 25.59

Here's what is working for Obayashi Corp.

Cash and Eqv

Highest at JPY 874,250 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -9.01 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.38%

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 -16.83% (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 Obayashi Corp.

Interest

At JPY 2,522 MM has Grown at 21.37%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,005.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 523,763 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

Fallen at -8.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 26,981 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 17,873.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 25.59

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)