Oi Electric Co., Ltd. (6822) 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

Allied Telesis Holdings K.K.

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Seiryo Electric Corp.

Daiko Tsusan Co., Ltd.

Oi Electric Co., Ltd.

Artiza Networks, Inc.

Nakayo, Inc.

TECHNO HORIZON Co., Ltd.

SAXA Holdings, Inc.

MOBCAST HOLDINGS, INC.

Iwatsu Electric Co., Ltd.

Why is Oi Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.10%

The company has been able to generate a Return on Capital Employed (avg) of 6.10% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.02

Poor long term growth as Net Sales has grown by an annual rate of 2.79% and Operating profit at 21.04% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.02
The company has been able to generate a Return on Equity (avg) of 7.50% signifying low profitability per unit of shareholders funds

Positive results in Dec 25

NET PROFIT(9M) At JPY 575.73 MM has Grown at 71.76%
RAW MATERIAL COST(Y) Fallen by 0.62% (YoY)

With ROE of 17.72%, it has a attractive valuation with a 0.56 Price to Book Value

Over the past year, while the stock has generated a return of 78.62%, its profits have risen by 28.3% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 78.62% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Oi Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

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

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

Is Oi Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Oi Electric Co., Ltd.

78.62%

3.86

50.45%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.79%

EBIT Growth (5y)

21.04%

EBIT to Interest (avg)

0.02

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

2.25

Tax Ratio

12.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.10%

ROE (avg)

7.50%

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

0.56

EV to EBIT

3.64

EV to EBITDA

2.67

EV to Capital Employed

0.64

EV to Sales

0.19

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

17.51%

ROE (Latest)

17.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

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

3What is working for the Company

NET PROFIT(9M)

At JPY 575.73 MM has Grown at 71.76%

RAW MATERIAL COST(Y)

Fallen by 0.62% (YoY

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.41 times

Here's what is working for Oi Electric Co., Ltd.

Net Profit

At JPY 575.73 MM has Grown at 71.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by 0.62% (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

Highest at JPY 188.97 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Oi Electric Co., Ltd.

Debtors Turnover Ratio

Lowest at 5.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio