Okayama Paper Industries Co., Ltd. (3892) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Kodoshi Corp.

Okayama Paper Industries Co., Ltd.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Daio Paper Corp.

Mitsubishi Paper Mills Ltd.

Tomoegawa Corp.

Nichiban Co., Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Why is Okayama Paper Industries Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 3.14% over the last 5 years

Flat results in May 25

RAW MATERIAL COST(Y) Grown by 16.93% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -34.2 %
OPERATING PROFIT(Q) Lowest at JPY 181.93 MM

With ROE of 6.70%, it has a very attractive valuation with a 0.62 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 38.43%, its profits have fallen by -31.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Okayama Paper Industries Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Okayama Paper Industries Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okayama Paper Industries Co., Ltd.

38.43%

0.96

22.85%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.14%

EBIT Growth (5y)

-1.25%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.96

Tax Ratio

29.54%

Dividend Payout Ratio

23.21%

Pledged Shares

Institutional Holding

ROCE (avg)

16.09%

ROE (avg)

6.90%

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

0.62

EV to EBIT

2.39

EV to EBITDA

1.88

EV to Capital Employed

0.36

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

15.10%

ROE (Latest)

6.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 98.78%

DIVIDEND PER SHARE(HY)

Highest at JPY 2.58

-11What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 16.93% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -34.2 %

OPERATING PROFIT(Q)

Lowest at JPY 181.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.4 %

PRE-TAX PROFIT(Q)

Lowest at JPY 151.36 MM

NET PROFIT(Q)

Lowest at JPY 117.47 MM

Here's what is working for Okayama Paper Industries Co., Ltd.

Dividend Payout Ratio

Highest at 98.78% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Dividend per share

Highest at JPY 2.58

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Okayama Paper Industries Co., Ltd.

Operating Profit

Lowest at JPY 181.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 151.36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -33.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 117.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -34.2 %

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

Raw Material Cost

Grown by 16.93% (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