Original Engineering Consultants Co., Ltd. (4642) 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

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Original Engineering Consultants Co., Ltd.

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Why is Original Engineering Consultants Co., Ltd. ?

Weak Long Term Fundamental Strength with a 14.24% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 9.01% and Operating profit at 14.24% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 11.36 MM has Grown at 77.25%

With ROE of 7.52%, it has a fair valuation with a 1.32 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 -17.76%, its profits have risen by 2.7% ; the PEG ratio of the company is 2.1

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -17.76% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Original Engineering Consultants Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Original Engineering Consultants Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Original Engineering Consultants Co., Ltd.

-100.0%

0.63

38.47%

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)

9.01%

EBIT Growth (5y)

14.24%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

0.94

Tax Ratio

41.84%

Dividend Payout Ratio

38.24%

Pledged Shares

Institutional Holding

ROCE (avg)

27.94%

ROE (avg)

7.36%

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

1.32

EV to EBIT

7.74

EV to EBITDA

6.11

EV to Capital Employed

1.48

EV to Sales

0.87

PEG Ratio

2.13

Dividend Yield

ROCE (Latest)

19.12%

ROE (Latest)

7.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly 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

13What is working for the Company

NET SALES(HY)

At JPY 5,767.01 MM has Grown at 23.22%

RAW MATERIAL COST(Y)

Fallen by 0.42% (YoY

CASH AND EQV(HY)

Highest at JPY 11,461.28 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.79 times

PRE-TAX PROFIT(Q)

At JPY 414.87 MM has Grown at 57.78%

NET PROFIT(Q)

At JPY 254.36 MM has Grown at 66.13%

-8What is not working for the Company

INTEREST(HY)

At JPY 11.36 MM has Grown at 77.25%

Here's what is working for Original Engineering Consultants Co., Ltd.

Net Sales

At JPY 5,767.01 MM has Grown at 23.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 414.87 MM has Grown at 57.78%

over average net sales of the previous four periods of JPY 262.94 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 254.36 MM has Grown at 66.13%

over average net sales of the previous four periods of JPY 153.11 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 11,461.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 8.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.42% (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 82.67 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 Original Engineering Consultants Co., Ltd.

Interest

At JPY 11.36 MM has Grown at 77.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)