OBIC Co. Ltd. (4684) 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

Fujitsu Ltd.

Nomura Research Institute Ltd.

OTSUKA CORP.

OBIC Co. Ltd.

TIS, Inc. (Japan)

NEC Networks & System Integration Corp.

GMO Internet Group, Inc.

SHIFT, Inc.

NEC Corp.

NS Solutions Corp.

Fuji Soft, Inc.

Why is OBIC Co. Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.79%

Healthy long term growth as Operating profit has grown by an annual rate 11.37%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Positive results for the last 33 consecutive quarters

OPERATING CASH FLOW(Y) Highest at JPY 65,444 MM
NET SALES(Q) Highest at JPY 32,431 MM
RAW MATERIAL COST(Y) Fallen by -0.59% (YoY)

With ROE of 14.89%, it has a attractive valuation with a 5.93 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 -1.25%, its profits have risen by 11.4%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to OBIC Co. Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is OBIC Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

OBIC Co. Ltd.

-1.25%

1.00

20.85%

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)

8.54%

EBIT Growth (5y)

11.37%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.29

Tax Ratio

28.26%

Dividend Payout Ratio

47.65%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

34.88%

ROE (avg)

14.79%

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

5.93

EV to EBIT

30.25

EV to EBITDA

29.24

EV to Capital Employed

10.14

EV to Sales

19.55

PEG Ratio

Dividend Yield

ROCE (Latest)

33.53%

ROE (Latest)

14.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 65,444 MM

NET SALES(Q)

Highest at JPY 32,431 MM

RAW MATERIAL COST(Y)

Fallen by -0.59% (YoY

CASH AND EQV(HY)

Highest at JPY 399,094 MM

OPERATING PROFIT(Q)

Highest at JPY 22,088 MM

OPERATING PROFIT MARGIN(Q)

Highest at 68.11 %

PRE-TAX PROFIT(Q)

Highest at JPY 27,241 MM

NET PROFIT(Q)

Highest at JPY 19,512 MM

EPS(Q)

Highest at JPY 44.36

-3What is not working for the Company

ROCE(HY)

Lowest at 15.8%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.23%

Here's what is working for OBIC Co. Ltd.

Operating Cash Flow

Highest at JPY 65,444 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 32,431 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 22,088 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 68.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 27,241 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 19,512 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 44.36

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 399,094 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.59% (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 OBIC Co. Ltd.

Debtors Turnover Ratio

Lowest at 7.23%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income