Okamoto Machine Tool Works, Ltd. (6125) 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

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Okamoto Machine Tool Works, Ltd.

Why is Okamoto Machine Tool Works, Ltd. ?

With a fall in Net Sales of -7.91%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 4 consecutive quarters
ROCE(HY) Lowest at 3.99%
INTEREST COVERAGE RATIO(Q) Lowest at 1,261.29
RAW MATERIAL COST(Y) Grown by 15.91% (YoY)

Underperformed the market in the last 1 year

The stock has generated a return of 3.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Okamoto Machine Tool Works, Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okamoto Machine Tool Works, Ltd.

3.32%

-0.33

46.95%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.98%

EBIT Growth (5y)

3.08%

EBIT to Interest (avg)

38.25

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.11

Tax Ratio

28.02%

Dividend Payout Ratio

48.98%

Pledged Shares

Institutional Holding

ROCE (avg)

20.85%

ROE (avg)

11.90%

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

0.65

EV to EBIT

7.11

EV to EBITDA

4.20

EV to Capital Employed

0.60

EV to Sales

0.49

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

8.50%

ROE (Latest)

4.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-27What is not working for the Company

ROCE(HY)

Lowest at 3.99%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,261.29

RAW MATERIAL COST(Y)

Grown by 15.91% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -7.77 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.5 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.15 times

OPERATING PROFIT(Q)

Lowest at JPY 391 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.22 %

PRE-TAX PROFIT(Q)

Lowest at JPY -194 MM

NET PROFIT(Q)

Lowest at JPY -138 MM

EPS(Q)

Lowest at JPY -20.88

Here's what is not working for Okamoto Machine Tool Works, Ltd.

Pre-Tax Profit

At JPY -194 MM has Fallen at -128.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -138 MM has Fallen at -133.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,261.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 391 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -194 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -138 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -20.88

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -7.77 %

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 1.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 15.91% (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