Odawara Engineering Co., Ltd. (6149) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Odawara Engineering Co., Ltd.

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Why is Odawara Engineering Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.40%

The company has been able to generate a Return on Equity (avg) of 6.40% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 32.52% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.40% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 32.52% of over the last 5 years

The company has declared negative results in Jun'2026 after 4 consecutive positive quarters

NET SALES(HY) At JPY 8,414.5 MM has Grown at -18.78%
INTEREST(HY) At JPY 0.13 MM has Grown at 83.1%
DEBT-EQUITY RATIO (HY) Highest at -41.83 %

With ROE of 14.30%, it has a very attractive valuation with a 0.71 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 10.86%, its profits have risen by 374% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Odawara Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Odawara Engineering Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Odawara Engineering Co., Ltd.

10.86%

0.90

30.13%

Japan Nikkei 225

58.07%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.43%

EBIT Growth (5y)

32.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

0.90

Tax Ratio

26.98%

Dividend Payout Ratio

17.28%

Pledged Shares

Institutional Holding

ROCE (avg)

19.29%

ROE (avg)

6.40%

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

0.71

EV to EBIT

1.22

EV to EBITDA

1.06

EV to Capital Employed

0.44

EV to Sales

0.22

PEG Ratio

0.01

Dividend Yield

0.05%

ROCE (Latest)

36.27%

ROE (Latest)

14.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly 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

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.95 times

RAW MATERIAL COST(Y)

Fallen by -1.31% (YoY

NET PROFIT(9M)

Higher at JPY 2,089.65 MM

-13What is not working for the Company

NET SALES(HY)

At JPY 8,414.5 MM has Grown at -18.78%

INTEREST(HY)

At JPY 0.13 MM has Grown at 83.1%

DEBT-EQUITY RATIO (HY)

Highest at -41.83 %

Here's what is working for Odawara Engineering Co., Ltd.

Inventory Turnover Ratio

Highest at 1.95 times 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

Net Profit

Higher at JPY 2,089.65 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -1.31% (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 Odawara Engineering Co., Ltd.

Net Sales

At JPY 8,414.5 MM has Grown at -18.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 0.13 MM has Grown at 83.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -41.83 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio