Why is OM2 Network Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 6.63%
- The company has been able to generate a Return on Equity (avg) of 6.63% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 1.81% over the last 5 years
3
Flat results in Oct 25
- INTEREST(HY) At JPY 4.97 MM has Grown at 4,333.93%
- ROCE(HY) Lowest at 5.53%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 6.54% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
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 OM2 Network Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
OM2 Network Co., Ltd.
6.54%
-0.06
34.97%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
1.81%
EBIT Growth (5y)
6.70%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
1.91
Tax Ratio
34.00%
Dividend Payout Ratio
20.74%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
26.22%
ROE (avg)
6.63%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.65
EV to EBIT
1.30
EV to EBITDA
1.02
EV to Capital Employed
0.24
EV to Sales
0.06
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
18.42%
ROE (Latest)
6.41%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.05% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 36.28 times
DEBTORS TURNOVER RATIO(HY)
Highest at 17.34 times
-10What is not working for the Company
INTEREST(HY)
At JPY 4.97 MM has Grown at 4,333.93%
ROCE(HY)
Lowest at 5.53%
Here's what is working for OM2 Network Co., Ltd.
Inventory Turnover Ratio
Highest at 36.28 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 17.34 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -4.05% (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
Depreciation
Highest at JPY 146.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for OM2 Network Co., Ltd.
Interest
At JPY 4.97 MM has Grown at 4,333.93%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






