OM2 Network Co., Ltd. (7614) 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

Yamazawa Co., Ltd.

Aoki Super Co., Ltd.

Ocean System Corp.

OM2 Network Co., Ltd.

Daiichi Co., Ltd.

Tenmaya Store Co. Ltd.

SUPER VALUE CO., LTD.

Kotobukiya Co., Ltd.

YAMANAKA CO., LTD.

Olympic Group Corp.

Sunday Co., Ltd.

Why is OM2 Network Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.42%

The company has been able to generate a Return on Equity (avg) of 6.42% signifying low profitability per unit of shareholders funds

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 3.34% over the last 5 years

Flat results in Jan 26

INTEREST(HY) At JPY 4.66 MM has Grown at 50.47%
ROCE(HY) Lowest at 5.34%
INVENTORY TURNOVER RATIO(HY) Lowest at 33.23 times

With ROE of 5.56%, it has a fair valuation with a 0.66 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 0.33%, its profits have fallen by -18.4%

Underperformed the market in the last 1 year

The stock has generated a return of 0.33% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OM2 Network Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is OM2 Network Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

OM2 Network Co., Ltd.

-100.0%

-0.09

34.84%

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)

3.34%

EBIT Growth (5y)

0.66%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

1.89

Tax Ratio

34.00%

Dividend Payout Ratio

25.39%

Pledged Shares

Institutional Holding

ROCE (avg)

26.22%

ROE (avg)

6.42%

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

0.66

EV to EBIT

1.33

EV to EBITDA

0.96

EV to Capital Employed

0.22

EV to Sales

0.05

PEG Ratio

Dividend Yield

ROCE (Latest)

16.48%

ROE (Latest)

5.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 27,107.3

DIVIDEND PAYOUT RATIO(Y)

Highest at 73.86%

RAW MATERIAL COST(Y)

Fallen by -3.19% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 14.89

NET SALES(Q)

Highest at JPY 9,470.43 MM

OPERATING PROFIT(Q)

Highest at JPY 605.31 MM

PRE-TAX PROFIT(Q)

Highest at JPY 580.27 MM

NET PROFIT(Q)

Highest at JPY 399.47 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 4.66 MM has Grown at 50.47%

ROCE(HY)

Lowest at 5.34%

INVENTORY TURNOVER RATIO(HY)

Lowest at 33.23 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.89 times

Here's what is working for OM2 Network Co., Ltd.

Interest Coverage Ratio

Highest at 27,107.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 9,470.43 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 605.31 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 580.27 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 399.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 14.89

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 73.86%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.19% (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 OM2 Network Co., Ltd.

Interest

At JPY 4.66 MM has Grown at 50.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 33.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 14.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio