OIZUMI Corp. (6428) 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

Japan Cash Machine Co., Ltd.

OIZUMI Corp.

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RIZAP GROUP, Inc.

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Sankyo Co., Ltd.

Tsuburaya Fields Holdings, Inc.

Universal Entertainment Corp.

Nagaoka International Corp.

Gamecard-Joyco Holdings, Inc.

Toda Kogyo Corp.

Why is OIZUMI Corp. ?

Poor Management Efficiency with a low ROCE of 3.62%

The company has been able to generate a Return on Capital Employed (avg) of 3.62% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.74% signifying low profitability per unit of shareholders funds

High Debt company with Weak Long Term Fundamental Strength

NET SALES(Q) At JPY 4,502.04 MM has Fallen at -15.44%
PRE-TAX PROFIT(Q) At JPY -224.91 MM has Fallen at -196.54%
NET PROFIT(Q) At JPY -292.73 MM has Fallen at -349.27%

With ROCE of 2.01%, it has a very attractive valuation with a 0.60 Enterprise value to Capital Employed

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 -4.06%, its profits have fallen by -38.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.06% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OIZUMI Corp. should be less than 10%
Overall Portfolio exposure to Diversified should be less than 30%

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

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

Is OIZUMI Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

OIZUMI Corp.

-4.06%

-1.18

14.80%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.26%

EBIT Growth (5y)

-16.64%

EBIT to Interest (avg)

10.19

Debt to EBITDA (avg)

4.28

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.60

Tax Ratio

66.03%

Dividend Payout Ratio

109.59%

Pledged Shares

Institutional Holding

ROCE (avg)

3.62%

ROE (avg)

3.74%

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

0.41

EV to EBIT

30.06

EV to EBITDA

10.80

EV to Capital Employed

0.60

EV to Sales

0.81

PEG Ratio

Dividend Yield

ROCE (Latest)

2.01%

ROE (Latest)

2.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

13What is working for the Company

NET SALES(HY)

At JPY 11,052.4 MM has Grown at 30.57%

NET PROFIT(HY)

At JPY -168.5 MM has Grown at 77.66%

DEBTORS TURNOVER RATIO(HY)

Highest at 11 times

RAW MATERIAL COST(Y)

Fallen by -1.32% (YoY

-21What is not working for the Company

NET SALES(Q)

At JPY 4,502.04 MM has Fallen at -15.44%

PRE-TAX PROFIT(Q)

At JPY -224.91 MM has Fallen at -196.54%

NET PROFIT(Q)

At JPY -292.73 MM has Fallen at -349.27%

DEBT-EQUITY RATIO (HY)

Highest at 55.41 %

INTEREST(Q)

Highest at JPY 52.49 MM

Here's what is working for OIZUMI Corp.

Debtors Turnover Ratio

Highest at 11 times and Grown

In each half year 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 -1.32% (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 OIZUMI Corp.

Net Sales

At JPY 4,502.04 MM has Fallen at -15.44%

over average net sales of the previous four periods of JPY 5,323.86 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -224.91 MM has Fallen at -196.54%

over average net sales of the previous four periods of JPY 232.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -292.73 MM has Fallen at -349.27%

over average net sales of the previous four periods of JPY 117.43 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 52.49 MM has Grown at 33.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 52.49 MM

in the last five periods and Increased by 33.05% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 55.41 %

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