OOTOYA Holdings Co., Ltd. (2705) 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

OOTOYA Holdings Co., Ltd.

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KFC Holdings Japan Ltd.

Why is OOTOYA Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROE of 14.38%

The company has been able to generate a Return on Equity (avg) of 14.38% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 16.90

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 16.90
The company has been able to generate a Return on Equity (avg) of 14.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.69% and Operating profit at 20.50% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 13 MM has Grown at 85.71%

With ROE of 34.17%, it has a fair valuation with a 14.04 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 59.44%, its profits have fallen by -18.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OOTOYA Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is OOTOYA Holdings Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

OOTOYA Holdings Co., Ltd.

59.44%

2.85

23.47%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.69%

EBIT Growth (5y)

20.50%

EBIT to Interest (avg)

51.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

6.28

Tax Ratio

40.12%

Dividend Payout Ratio

11.77%

Pledged Shares

Institutional Holding

ROCE (avg)

75.74%

ROE (avg)

14.38%

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

14.04

EV to EBIT

26.70

EV to EBITDA

20.41

EV to Capital Employed

26.48

EV to Sales

1.44

PEG Ratio

Dividend Yield

ROCE (Latest)

99.17%

ROE (Latest)

34.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

10What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 50.23%

RAW MATERIAL COST(Y)

Fallen by 1.5% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 24.38

NET SALES(Q)

At JPY 9,553 MM has Grown at 17.13%

PRE-TAX PROFIT(Q)

At JPY 604 MM has Grown at 70.14%

NET PROFIT(Q)

Highest at JPY 374.97 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 13 MM has Grown at 85.71%

Here's what is working for OOTOYA Holdings Co., Ltd.

Net Sales

At JPY 9,553 MM has Grown at 17.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 604 MM has Grown at 70.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 374.97 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 24.38

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 50.23%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.5% (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 172 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 13 MM has Grown at 85.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 0.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income