Okuma Corp. (6103) 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

Horiba Ltd.

Fuji Corp. (Machinery)

Tokyo Seimitsu Co., Ltd.

Nabtesco Corp.

THK CO., LTD.

NOK Corp.

Fujitec Co., Ltd.

Okuma Corp.

Fujitsu General Ltd.

DMG MORI CO., LTD.

Harmonic Drive Systems, Inc.

Why is Okuma Corp. ?

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

Poor long term growth as Operating profit has grown by an annual rate -0.46% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At JPY 56 MM has Grown at 33.33%
NET PROFIT(HY) At JPY 4,018.49 MM has Grown at -53.98%
ROCE(HY) Lowest at 3.76%

With ROE of 4.54%, it has a very attractive valuation with a 1.11 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 17.43%, its profits have fallen by -47.2%

Underperformed the market in the last 1 year

The stock has generated a return of 17.43% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Okuma Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Okuma Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okuma Corp.

14.0%

0.37

36.15%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.74%

EBIT Growth (5y)

-0.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.97

Tax Ratio

35.09%

Dividend Payout Ratio

63.11%

Pledged Shares

Institutional Holding

ROCE (avg)

11.15%

ROE (avg)

6.21%

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

1.11

EV to EBIT

14.34

EV to EBITDA

8.80

EV to Capital Employed

1.14

EV to Sales

1.02

PEG Ratio

Dividend Yield

ROCE (Latest)

7.94%

ROE (Latest)

4.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

-28What is not working for the Company

INTEREST(HY)

At JPY 56 MM has Grown at 33.33%

NET PROFIT(HY)

At JPY 4,018.49 MM has Grown at -53.98%

ROCE(HY)

Lowest at 3.76%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.58%

INTEREST COVERAGE RATIO(Q)

Lowest at 18,380.95

RAW MATERIAL COST(Y)

Grown by 9.67% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -16.18 %

NET SALES(Q)

Lowest at JPY 44,646 MM

OPERATING PROFIT(Q)

Lowest at JPY 3,860 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.65 %

PRE-TAX PROFIT(Q)

Lowest at JPY 2,152 MM

Here's what is not working for Okuma Corp.

Interest

At JPY 56 MM has Grown at 33.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 18,380.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 1.58% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 44,646 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 3,860 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 2,152 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 -40.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -42.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -16.18 %

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 9.67% (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