OHBA Co., Ltd. (9765) 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

Kyowanissei Co., Ltd.

Tanabe Engineering Corp.

Novac Co., Ltd.

THE NIPPON ROAD CO., LTD.

OHBA Co., Ltd.

Kitano Construction Corp.

Br. Holdings Corp.

Daiseki Eco. Solution Co., Ltd.

MIYAJI ENGINEERING GROUP, INC.

Lib Work Co., Ltd.

KOZO KEIKAKU ENGINEERING, Inc.

Why is OHBA Co., Ltd. ?

High Management Efficiency with a high ROE of 12.56%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 2.76% over the last 5 years

With a fall in Net Sales of -1.21%, the company declared Very Negative results in May 25

The company has declared negative results for the last 2 consecutive quarters
CASH AND EQV(HY) Lowest at JPY 2,732.57 MM
INTEREST(Q) Highest at JPY 7.81 MM

With ROE of 11.64%, it has a very attractive valuation with a 1.35 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 8.77%, its profits have risen by 8.2% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 8.77% 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 OHBA Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is OHBA Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

OHBA Co., Ltd.

8.77%

0.24

17.27%

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)

2.76%

EBIT Growth (5y)

9.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.28

Tax Ratio

33.18%

Dividend Payout Ratio

50.19%

Pledged Shares

Institutional Holding

ROCE (avg)

20.37%

ROE (avg)

12.56%

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

1.35

EV to EBIT

10.23

EV to EBITDA

9.32

EV to Capital Employed

1.28

EV to Sales

1.16

PEG Ratio

1.18

Dividend Yield

0.10%

ROCE (Latest)

12.50%

ROE (Latest)

11.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 73.92%

DIVIDEND PER SHARE(HY)

Highest at JPY 2.65

NET SALES(Q)

Highest at JPY 6,094.84 MM

-12What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 2,732.57 MM

INTEREST(Q)

Highest at JPY 7.81 MM

Here's what is working for OHBA Co., Ltd.

Net Sales

Highest at JPY 6,094.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 2.65

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 73.92%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 60.62 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 60.62 MM has Grown at 26.1%

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 OHBA Co., Ltd.

Interest

At JPY 7.81 MM has Grown at 24.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 7.81 MM

in the last five periods and Increased by 24.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 2,732.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents