OPTEX GROUP Co., Ltd. (6914) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Ceramic Co., Ltd.

Dexerials Corp.

Hioki E.E. Corp.

OPTEX GROUP Co., Ltd.

Anritsu Corp.

IDEC Corp.

Riken Keiki Co., Ltd.

Glory Ltd.

Oki Electric Industry Co., Ltd.

Toshiba Tec Corp.

Topcon Corp.

Why is OPTEX GROUP Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 11.17%

With ROE of 12.26%, it has a very attractive valuation with a 1.15 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 50.93%, its profits have risen by 33.4% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 50.93% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to OPTEX GROUP Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is OPTEX GROUP Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

OPTEX GROUP Co., Ltd.

52.54%

1.81

32.10%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.17%

EBIT Growth (5y)

22.00%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.05

Tax Ratio

25.36%

Dividend Payout Ratio

25.03%

Pledged Shares

Institutional Holding

0.18%

ROCE (avg)

15.67%

ROE (avg)

10.37%

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

1.15

EV to EBIT

6.49

EV to EBITDA

5.10

EV to Capital Employed

1.20

EV to Sales

0.75

PEG Ratio

0.28

Dividend Yield

0.06%

ROCE (Latest)

18.44%

ROE (Latest)

12.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

7What is working for the Company

ROCE(HY)

Highest at 12.34%

RAW MATERIAL COST(Y)

Fallen by -4.99% (YoY

CASH AND EQV(HY)

Highest at JPY 40,955 MM

DEBT-EQUITY RATIO (HY)

Lowest at -25.78 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.37%

DIVIDEND PER SHARE(HY)

Highest at JPY 5.37

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.41%

PRE-TAX PROFIT(Q)

Lowest at JPY 1,550 MM

EPS(Q)

Lowest at JPY 33.97

Here's what is working for OPTEX GROUP Co., Ltd.

Cash and Eqv

Highest at JPY 40,955 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -25.78 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.37%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 5.37

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -4.99% (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 504 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 OPTEX GROUP Co., Ltd.

Pre-Tax Profit

Lowest at JPY 1,550 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

EPS

Lowest at JPY 33.97

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 1.41%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio