OSAKA STEEL CO., LTD. (5449) 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

Okaya & Co., Ltd.

Yodogawa Steel Works, Ltd.

Kobe Steel, Ltd.

Daido Steel Co., Ltd.

Kyoei Steel Ltd.

Sojitz Corp.

Yamato Kogyo Co., Ltd.

Godo Steel, Ltd.

Tokyo Steel Manufacturing Co., Ltd.

OSAKA STEEL CO., LTD.

Sanyo Special Steel Co., Ltd.

Why is OSAKA STEEL CO., LTD. ?

Poor Management Efficiency with a low ROCE of 3.66%

The company has been able to generate a Return on Capital Employed (avg) of 3.66% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -6.58% of over the last 5 years

Negative results in Jun 25

ROCE(HY) Lowest at -0.4%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.14%
INTEREST COVERAGE RATIO(Q) Lowest at 891.25

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 29.35% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.48% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is OSAKA STEEL CO., LTD. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

OSAKA STEEL CO., LTD.

-13.95%

0.30

45.40%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.91%

EBIT Growth (5y)

-6.58%

EBIT to Interest (avg)

10.86

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.68

Tax Ratio

38.97%

Dividend Payout Ratio

41.01%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

3.83%

ROE (avg)

1.82%

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

0.71

EV to EBIT

22.58

EV to EBITDA

11.81

EV to Capital Employed

0.72

EV to Sales

1.02

PEG Ratio

Dividend Yield

ROCE (Latest)

3.19%

ROE (Latest)

2.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.98%

-35What is not working for the Company

ROCE(HY)

Lowest at -0.4%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.14%

INTEREST COVERAGE RATIO(Q)

Lowest at 891.25

RAW MATERIAL COST(Y)

Grown by 55.2% (YoY

NET SALES(Q)

Lowest at JPY 25,771 MM

OPERATING PROFIT(Q)

Lowest at JPY 713 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.77 %

PRE-TAX PROFIT(Q)

Lowest at JPY -1,557 MM

NET PROFIT(Q)

Lowest at JPY -1,456 MM

EPS(Q)

Lowest at JPY -49.63

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

Debtors Turnover Ratio

Highest at 2.98%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Sales

At JPY 25,771 MM has Fallen at -18.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -1,557 MM has Fallen at -146.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -1,456 MM has Fallen at -165.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 891.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 3.14% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 25,771 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 713 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -1,557 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -1,456 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -49.63

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 55.2% (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