OBIC Business Consultants Co., Ltd. (4733) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

RAKUS Co., Ltd.

Capcom Co., Ltd.

NSD Co., Ltd.

KONAMI Group Corp.

Trend Micro, Inc.

OBIC Business Consultants Co., Ltd.

Koei Tecmo Holdings Co., Ltd.

Oracle Corp Japan

Square Enix Holdings Co., Ltd.

Money Forward, Inc.

Sega Sammy Holdings, Inc.

Why is OBIC Business Consultants Co., Ltd. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Net Sales has grown by an annual rate of 9.34%
Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 166.53% signifying high profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 8 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Highest at 76.15%
RAW MATERIAL COST(Y) Fallen by -2.21% (YoY)
CASH AND EQV(HY) Highest at JPY 318,992.04 MM

With ROE of 10.18%, it has a attractive valuation with a 3.93 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 16.85%, its profits have risen by 16.8% ; the PEG ratio of the company is 2.3

Underperformed the market in the last 1 year

The stock has generated a return of 16.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OBIC Business Consultants Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is OBIC Business Consultants Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

OBIC Business Consultants Co., Ltd.

16.85%

1.23

28.29%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.34%

EBIT Growth (5y)

10.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.01

Sales to Capital Employed (avg)

0.28

Tax Ratio

30.47%

Dividend Payout Ratio

46.45%

Pledged Shares

Institutional Holding

ROCE (avg)

166.53%

ROE (avg)

8.72%

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

3.93

EV to EBIT

21.30

EV to EBITDA

20.79

EV to Capital Employed

-223.96

EV to Sales

9.86

PEG Ratio

2.29

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

10.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 76.15%

RAW MATERIAL COST(Y)

Fallen by -2.21% (YoY

CASH AND EQV(HY)

Highest at JPY 318,992.04 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.76%

-2What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 16,749.98 MM

Here's what is working for OBIC Business Consultants Co., Ltd.

Inventory Turnover Ratio

Highest at 76.15% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 318,992.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.76%

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 -2.21% (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

Depreciation

At JPY 159.8 MM has Grown at 685.78%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for OBIC Business Consultants Co., Ltd.

Operating Cash Flow

Lowest at JPY 16,749.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)