oRo Co., Ltd. (3983) 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

Cresco Ltd.

m-up holdings, Inc.

Business Engineering Corp.

NSW, Inc. (Japan)

oRo Co., Ltd.

MarkLines Co., Ltd.

Baudroie, Inc.

Alpha Systems, Inc.

Core Concept Technologies, Inc.

Fixstars Corp.

Tsuzuki Denki Co., Ltd.

Why is oRo Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.27%

Healthy long term growth as Net Sales has grown by an annual rate of 10.00% and Operating profit at 8.00%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at JPY 2,135.08 MM
INTEREST(Q) At JPY 4.91 MM has Grown at inf%
DEBT-EQUITY RATIO (HY) Highest at -80.73 %

With ROE of 20.37%, it has a fair valuation with a 3.15 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 -31.78%, its profits have risen by 5% ; the PEG ratio of the company is 2.4

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -31.78% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to oRo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is oRo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

oRo Co., Ltd.

-31.78%

-0.36

36.56%

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)

10.00%

EBIT Growth (5y)

8.00%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.96

Sales to Capital Employed (avg)

0.79

Tax Ratio

29.13%

Dividend Payout Ratio

41.58%

Pledged Shares

Institutional Holding

ROCE (avg)

399.49%

ROE (avg)

22.27%

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

3.15

EV to EBIT

8.28

EV to EBITDA

7.39

EV to Capital Employed

16.79

EV to Sales

2.67

PEG Ratio

2.42

Dividend Yield

ROCE (Latest)

202.80%

ROE (Latest)

20.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

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

6What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 6.13 times

NET SALES(Q)

Highest at JPY 2,350.77 MM

OPERATING PROFIT(Q)

Highest at JPY 902.88 MM

OPERATING PROFIT MARGIN(Q)

Highest at 38.41 %

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 2,135.08 MM

INTEREST(Q)

At JPY 4.91 MM has Grown at inf%

DEBT-EQUITY RATIO (HY)

Highest at -80.73 %

Here's what is working for oRo Co., Ltd.

Debtors Turnover Ratio

Highest at 6.13 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at JPY 2,350.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 2,350.77 MM has Grown at 13.18%

over average net sales of the previous four periods of JPY 2,076.99 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 902.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 38.41 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Depreciation

Highest at JPY 90.23 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 oRo Co., Ltd.

Operating Cash Flow

Lowest at JPY 2,135.08 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 4.91 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -80.73 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio