Okinawa Cellular Telephone Co. (9436) 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

Vision, Inc. ( Japan)

Forval Telecom, Inc.

Okinawa Cellular Telephone Co.

WirelessGate, Inc.

SoftBank Corp.

KDDI Corp.

Japan Communications Inc.

Why is Okinawa Cellular Telephone Co. ?

Weak Long Term Fundamental Strength with a 4.51% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 3.08% and Operating profit at 4.51% over the last 5 years

With a growth in Net Profit of 30.38%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 16,286 MM
ROCE(HY) Highest at 14.36%
RAW MATERIAL COST(Y) Fallen by -12.56% (YoY)

With ROE of 13.66%, it has a very expensive valuation with a 3.44 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 -21.39%, its profits have risen by 6.8%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.39% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Okinawa Cellular Telephone Co. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Okinawa Cellular Telephone Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okinawa Cellular Telephone Co.

-21.67%

0.24

57.17%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.08%

EBIT Growth (5y)

4.51%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.86

Tax Ratio

28.30%

Dividend Payout Ratio

47.17%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

18.80%

ROE (avg)

12.24%

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

3.44

EV to EBIT

17.61

EV to EBITDA

13.22

EV to Capital Employed

3.52

EV to Sales

3.90

PEG Ratio

Dividend Yield

ROCE (Latest)

20.01%

ROE (Latest)

13.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

Bullish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 16,286 MM

ROCE(HY)

Highest at 14.36%

RAW MATERIAL COST(Y)

Fallen by -12.56% (YoY

OPERATING PROFIT(Q)

Highest at JPY 7,382 MM

OPERATING PROFIT MARGIN(Q)

Highest at 33.54 %

PRE-TAX PROFIT(Q)

Highest at JPY 5,939 MM

NET PROFIT(Q)

Highest at JPY 4,060 MM

EPS(Q)

Highest at JPY 44.09

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Okinawa Cellular Telephone Co.

Operating Cash Flow

Highest at JPY 16,286 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Operating Profit

Highest at JPY 7,382 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 33.54 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 5,939 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 4,060 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 44.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -12.56% (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