ScoreWhy is Okamoto Industries, Inc. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 3.81% and Operating profit at 3.45% over the last 5 years
3
Negative results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 12,375
- ROCE(HY) Lowest at 5.36%
- OPERATING PROFIT(Q) Lowest at JPY 1,485 MM
4
With ROE of 7.93%, it has a very attractive valuation with a 0.94 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 -5.38%, its profits have fallen by -19.7%
- At the current price, the company has a high dividend yield of 0
5
Below par performance in long term as well as near term
- Along with generating -5.38% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Okamoto Industries, Inc. should be less than 10%
- Overall Portfolio exposure to Packaging should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Okamoto Industries, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Okamoto Industries, Inc.
-5.38%
0.57
21.81%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.81%
EBIT Growth (5y)
3.45%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.40
Sales to Capital Employed (avg)
1.17
Tax Ratio
31.03%
Dividend Payout Ratio
31.31%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
17.49%
ROE (avg)
9.09%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.94
EV to EBIT
5.89
EV to EBITDA
4.62
EV to Capital Employed
0.90
EV to Sales
0.47
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
15.34%
ROE (Latest)
7.93%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 4.06%
-37What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 12,375
ROCE(HY)
Lowest at 5.36%
OPERATING PROFIT(Q)
Lowest at JPY 1,485 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.51 %
RAW MATERIAL COST(Y)
Grown by 29.37% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -34.89 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.73%
INTEREST(Q)
Highest at JPY 12 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 1,260 MM
NET PROFIT(Q)
Lowest at JPY 551.83 MM
EPS(Q)
Lowest at JPY 27.64
Here's what is working for Okamoto Industries, Inc.
Debtors Turnover Ratio
Highest at 4.06%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 670 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Okamoto Industries, Inc.
Interest Coverage Ratio
Lowest at 12,375 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At JPY 1,260 MM has Fallen at -64.75%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 551.83 MM has Fallen at -78.31%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 12 MM has Grown at 20%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 1,485 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 5.51 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Interest
Highest at JPY 12 MM
in the last five periods and Increased by 20% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
Lowest at JPY 1,260 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 551.83 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 27.64
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at -34.89 %
in the last five Semi-Annual periodsMOJO 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 4.73%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 29.37% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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