Why is Original Engineering Consultants Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 6.30% and Operating profit at 6.75% over the last 5 years
3
Positive results in Mar 26
- CASH AND EQV(HY) Highest at JPY 8,466 MM
- NET SALES(Q) Highest at JPY 3,290.58 MM
- OPERATING PROFIT(Q) Highest at JPY 741.91 MM
4
With ROE of 6.99%, it has a expensive valuation with a 1.43 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 2.77%, its profits have fallen by -14.6%
5
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
6
Underperformed the market in the last 1 year
- The stock has generated a return of 2.77% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%
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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Original Engineering Consultants Co., Ltd.
1.13%
0.67
40.89%
Japan Nikkei 225
71.75%
2.62
26.55%
Quality key factors
Factor
Value
Sales Growth (5y)
6.30%
EBIT Growth (5y)
6.75%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.37
Sales to Capital Employed (avg)
0.94
Tax Ratio
28.40%
Dividend Payout Ratio
38.24%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
29.21%
ROE (avg)
7.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
1.43
EV to EBIT
9.87
EV to EBITDA
7.88
EV to Capital Employed
1.59
EV to Sales
1.07
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
16.14%
ROE (Latest)
6.99%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
17What is working for the Company
CASH AND EQV(HY)
Highest at JPY 8,466 MM
NET SALES(Q)
Highest at JPY 3,290.58 MM
OPERATING PROFIT(Q)
Highest at JPY 741.91 MM
PRE-TAX PROFIT(Q)
Highest at JPY 675.9 MM
NET PROFIT(Q)
Highest at JPY 417.18 MM
EPS(Q)
Highest at JPY 68.74
-13What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 9.62% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -33.15 %
INTEREST(Q)
Highest at JPY 5.63 MM
Here's what is working for Original Engineering Consultants Co., Ltd.
Net Sales
At JPY 3,290.58 MM has Grown at 54.57%
over average net sales of the previous four periods of JPY 2,128.8 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 675.9 MM has Grown at 189.24%
over average net sales of the previous four periods of JPY 233.68 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 417.18 MM has Grown at 202.35%
over average net sales of the previous four periods of JPY 137.98 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 3,290.58 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 741.91 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 675.9 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 417.18 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 68.74
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 8,466 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Original Engineering Consultants Co., Ltd.
Interest
At JPY 5.63 MM has Grown at 26.81%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 5.63 MM
in the last five periods and Increased by 26.81% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -33.15 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 9.62% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






