Okabe Co., Ltd. (5959) 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

MODEC, Inc.

Yamabiko Corp.

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Namura Shipbuilding Co., Ltd.

HOKUETSU INDUSTRIES CO., LTD.

Aichi Corp.

MITSUI E&S Co., Ltd.

Nisshinbo Holdings, Inc.

Giken Ltd.

Kyokuto Kaihatsu Kogyo Co., Ltd.

Okabe Co., Ltd.

Why is Okabe Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.18%

The company has been able to generate a Return on Equity (avg) of 5.18% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -1.03% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -1.03% of over the last 5 years

Flat results in Jun 26

NET PROFIT(9M) At JPY 2,156.43 MM has Grown at -49.16%
INTEREST(Q) At JPY 20 MM has Grown at 25%
CASH AND EQV(HY) Lowest at JPY 17,456 MM

With ROE of 5.32%, it has a very attractive valuation with a 0.69 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 -1.91%, its profits have fallen by -34.2%
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 Okabe Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Okabe Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okabe Co., Ltd.

-3.51%

0.97

19.34%

Japan Nikkei 225

57.85%

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)

2.26%

EBIT Growth (5y)

-1.03%

EBIT to Interest (avg)

42.01

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.04

Tax Ratio

35.38%

Dividend Payout Ratio

43.20%

Pledged Shares

Institutional Holding

1.29%

ROCE (avg)

7.96%

ROE (avg)

5.18%

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

0.69

EV to EBIT

9.10

EV to EBITDA

6.29

EV to Capital Employed

0.67

EV to Sales

0.56

PEG Ratio

Dividend Yield

ROCE (Latest)

7.37%

ROE (Latest)

5.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly 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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 8,855

RAW MATERIAL COST(Y)

Fallen by 1.44% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.78 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.78

-10What is not working for the Company

NET PROFIT(9M)

At JPY 2,156.43 MM has Grown at -49.16%

INTEREST(Q)

At JPY 20 MM has Grown at 25%

CASH AND EQV(HY)

Lowest at JPY 17,456 MM

DEBT-EQUITY RATIO (HY)

Highest at -3.19 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.78 times

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

Interest Coverage Ratio

Highest at 8,855

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 3.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 3.78

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.44% (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 492 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 Okabe Co., Ltd.

Net Profit

At JPY 2,156.43 MM has Grown at -49.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 20 MM has Grown at 25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 17,456 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -3.19 %

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

Inventory Turnover Ratio

Lowest at 2.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio