Okamura Foods Co., Ltd. () 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

Okamura Foods Co., Ltd.

Why is Okamura Foods Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 15.00% and Operating profit at 19.20% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 19.36% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 900
DEBT-EQUITY RATIO (HY) Highest at 141.75 %
INTEREST(Q) Highest at JPY 138 MM

With ROE of 12.68%, it has a very expensive valuation with a 3.31 Price to Book Value

Over the past year, while the stock has generated a return of -62.75%, its profits have fallen by -2%

Below par performance in long term as well as near term

Along with generating -62.75% 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 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 Other Agricultural Products)

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

Is Okamura Foods Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okamura Foods Co., Ltd.

-62.75%

-0.16

80.55%

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)

15.00%

EBIT Growth (5y)

19.20%

EBIT to Interest (avg)

20.14

Debt to EBITDA (avg)

3.27

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.87

Tax Ratio

32.88%

Dividend Payout Ratio

15.32%

Pledged Shares

Institutional Holding

ROCE (avg)

11.79%

ROE (avg)

19.36%

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

3.31

EV to EBIT

26.08

EV to EBITDA

18.17

EV to Capital Employed

1.90

EV to Sales

2.37

PEG Ratio

Dividend Yield

ROCE (Latest)

7.30%

ROE (Latest)

12.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

8What is working for the Company

NET PROFIT(HY)

At JPY 1,232.32 MM has Grown at 99.55%

RAW MATERIAL COST(Y)

Fallen by -12.64% (YoY

NET SALES(Q)

At JPY 9,946 MM has Grown at 20.63%

PRE-TAX PROFIT(Q)

At JPY 891 MM has Grown at 88.77%

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 900

DEBT-EQUITY RATIO (HY)

Highest at 141.75 %

INTEREST(Q)

Highest at JPY 138 MM

Here's what is working for Okamura Foods Co., Ltd.

Net Profit

At JPY 1,232.32 MM has Grown at 99.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

At JPY 9,946 MM has Grown at 20.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 891 MM has Grown at 88.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -12.64% (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 428 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 Okamura Foods Co., Ltd.

Interest

At JPY 138 MM has Grown at 20%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 900

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 138 MM

in the last five periods and Increased by 20% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 141.75 %

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