OSAKA SODA CO., LTD. (4046) 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

Japan Material Co., Ltd.

Nifco, Inc.

DIC Corp.

Air Water, Inc.

Kaneka Corp.

UBE Corp.

OSAKA SODA CO., LTD.

Daicel Corp.

Mitsubishi Gas Chemical Co., Inc.

Denka Co., Ltd.

Resonac Holdings Corp.

Why is OSAKA SODA CO., LTD. ?

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 -1.23% over the last 5 years

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 3.71%
INTEREST(Q) Highest at JPY 45 MM

With ROE of 8.94%, it has a attractive valuation with a 1.83 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 17.95%, its profits have risen by 24.3%

Underperformed the market in the last 1 year

The stock has generated a return of 17.95% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OSAKA SODA CO., LTD. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is OSAKA SODA CO., LTD. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

OSAKA SODA CO., LTD.

17.95%

0.14

41.28%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.23%

EBIT Growth (5y)

6.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.84

Tax Ratio

29.49%

Dividend Payout Ratio

23.30%

Pledged Shares

Institutional Holding

ROCE (avg)

17.01%

ROE (avg)

9.23%

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

1.83

EV to EBIT

13.25

EV to EBITDA

10.20

EV to Capital Employed

2.20

EV to Sales

1.77

PEG Ratio

Dividend Yield

ROCE (Latest)

16.58%

ROE (Latest)

8.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.67% (YoY

CASH AND EQV(HY)

Highest at JPY 83,703 MM

OPERATING PROFIT(Q)

Highest at JPY 4,975 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.49 %

-12What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.71%

INTEREST(Q)

Highest at JPY 45 MM

Here's what is working for OSAKA SODA CO., LTD.

Operating Profit

Highest at JPY 4,975 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 20.49 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 83,703 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -10.67% (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

Here's what is not working for OSAKA SODA CO., LTD.

Interest

At JPY 45 MM has Grown at 18.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 45 MM

in the last five periods and Increased by 18.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.71%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio