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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nabtesco Corp.

Harmonic Drive Systems, Inc.

Okuma Corp.

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 26.53% of over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 9,525.64
RAW MATERIAL COST(Y) Grown by 6.66% (YoY)
CASH AND EQV(HY) Lowest at JPY 95,387 MM

With ROE of 4.69%, it has a very attractive valuation with a 1.13 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 23.51%, its profits have fallen by -20.1%

Underperformed the market in the last 1 year

The stock has generated a return of 23.51% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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 Okuma Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okuma Corp.

23.51%

0.88

40.49%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.90%

EBIT Growth (5y)

26.53%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.93

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

1.13

EV to EBIT

15.97

EV to EBITDA

9.98

EV to Capital Employed

1.15

EV to Sales

1.07

PEG Ratio

Dividend Yield

ROCE (Latest)

7.20%

ROE (Latest)

4.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

12What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.99 times

NET SALES(Q)

Highest at JPY 69,380 MM

OPERATING PROFIT(Q)

Highest at JPY 7,430 MM

PRE-TAX PROFIT(Q)

Highest at JPY 6,116 MM

NET PROFIT(Q)

Highest at JPY 4,206.32 MM

EPS(Q)

Highest at JPY 66.86

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 9,525.64

RAW MATERIAL COST(Y)

Grown by 6.66% (YoY

CASH AND EQV(HY)

Lowest at JPY 95,387 MM

DEBT-EQUITY RATIO (HY)

Highest at -10.66 %

INTEREST(Q)

Highest at JPY 78 MM

Here's what is working for Okuma Corp.

Net Sales

Highest at JPY 69,380 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 69,380 MM has Grown at 19.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 7,430 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 6,116 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 4,206.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 66.86

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 1.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Okuma Corp.

Interest

At JPY 78 MM has Grown at 239.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 9,525.64

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 78 MM

in the last five periods and Increased by 239.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 95,387 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -10.66 %

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 6.66% (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