Okuwa Co., Ltd. (8217) 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

Axial Retailing, Inc.

Halows Co., Ltd.

Maxvalu Tokai Co., Ltd.

JM Holdings Co., Ltd.

Saint Marc Holdings Co., Ltd.

RETAIL PARTNERS CO., LTD.

Okuwa Co., Ltd.

Ministop Co., Ltd.

Daikokutenbussan Co., Ltd.

Kansai Food Market Ltd.

Inageya Co., Ltd.

Why is Okuwa Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.66%

The company has been able to generate a Return on Equity (avg) of 3.66% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.79% and Operating profit at -24.45% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

NET PROFIT(HY) At JPY 285.17 MM has Grown at -80.48%
INVENTORY TURNOVER RATIO(HY) Lowest at 16.2 times
DEBT-EQUITY RATIO (HY) Highest at 14.91 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.59% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 Retailing)

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

Is Okuwa Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Okuwa Co., Ltd.

-15.5%

-0.89

19.79%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.79%

EBIT Growth (5y)

-24.45%

EBIT to Interest (avg)

49.01

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

2.61

Tax Ratio

5.74%

Dividend Payout Ratio

404.15%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

4.48%

ROE (avg)

3.66%

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

0.48

EV to EBIT

25.97

EV to EBITDA

5.66

EV to Capital Employed

0.56

EV to Sales

0.19

PEG Ratio

0.16

Dividend Yield

0.13%

ROCE (Latest)

2.15%

ROE (Latest)

2.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 1,207 MM has Grown at 149.38%

RAW MATERIAL COST(Y)

Fallen by -1.68% (YoY

-23What is not working for the Company

NET PROFIT(HY)

At JPY 285.17 MM has Grown at -80.48%

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.2 times

DEBT-EQUITY RATIO (HY)

Highest at 14.91 %

DIVIDEND PER SHARE(HY)

Lowest at JPY 36.94

INTEREST(Q)

Highest at JPY 55 MM

Here's what is working for Okuwa Co., Ltd.

Pre-Tax Profit

At JPY 1,207 MM has Grown at 149.38%

over average net sales of the previous four periods of JPY 484 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -1.68% (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

Here's what is not working for Okuwa Co., Ltd.

Net Profit

At JPY 285.17 MM has Grown at -80.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 55 MM has Grown at 12.24%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 16.2 times 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

Interest

Highest at JPY 55 MM

in the last five periods and Increased by 12.24% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 14.91 %

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

Dividend per share

Lowest at JPY 36.94

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)