Osaka Organic Chemical Industry Ltd. (4187) 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

Oki Electric Industry Co., Ltd.

Nippon Ceramic Co., Ltd.

Hioki E.E. Corp.

OPTEX GROUP Co., Ltd.

IDEC Corp.

Osaka Organic Chemical Industry Ltd.

Riken Keiki Co., Ltd.

Anritsu Corp.

Abalance Corp.

Glory Ltd.

Topcon Corp.

Why is Osaka Organic Chemical Industry Ltd. ?

High Management Efficiency with a high ROE of 10.31%

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

Poor long term growth as Net Sales has grown by an annual rate of 4.80% over the last 5 years

With a growth in Operating Profit of 2.75%, the company declared Very Positive results in Nov 25

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 14.48%
DEBT-EQUITY RATIO (HY) Lowest at -29.34 %
INVENTORY TURNOVER RATIO(HY) Highest at 2.74 times

With ROE of 9.44%, it has a very attractive valuation with a 1.84 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 98.44%, its profits have risen by 14% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 98.44% returns in the last 1 year, the stock has outperformed 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 Osaka Organic Chemical Industry 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 Osaka Organic Chemical Industry Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Osaka Organic Chemical Industry Ltd.

98.44%

1.05

38.19%

Japan Nikkei 225

69.82%

2.78

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.80%

EBIT Growth (5y)

6.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.68

Tax Ratio

26.37%

Dividend Payout Ratio

22.28%

Pledged Shares

Institutional Holding

ROCE (avg)

14.77%

ROE (avg)

10.31%

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

1.84

EV to EBIT

12.39

EV to EBITDA

8.32

EV to Capital Employed

2.18

EV to Sales

2.11

PEG Ratio

1.39

Dividend Yield

0.02%

ROCE (Latest)

17.61%

ROE (Latest)

9.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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

13What is working for the Company

ROCE(HY)

Highest at 14.48%

DEBT-EQUITY RATIO (HY)

Lowest at -29.34 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.74 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.07

INTEREST COVERAGE RATIO(Q)

Highest at 182,826.19

CASH AND EQV(HY)

Highest at JPY 27,374.1 MM

NET SALES(Q)

Highest at JPY 9,566.48 MM

EPS(Q)

Highest at JPY 169.05

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 23.66%

OPERATING PROFIT MARGIN(Q)

Lowest at 24.44 %

Here's what is working for Osaka Organic Chemical Industry Ltd.

Interest Coverage Ratio

Highest at 182,826.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -29.34 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.74 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3.07 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 9,566.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 169.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 27,374.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Osaka Organic Chemical Industry Ltd.

Operating Profit Margin

Lowest at 24.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio

Lowest at 23.66%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)