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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yodogawa Steel Works, Ltd.

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Sojitz Corp.

Okaya & Co., Ltd.

Kobe Steel, Ltd.

Kyoei Steel Ltd.

Daido Steel Co., Ltd.

Tokyo Steel Manufacturing Co., Ltd.

Godo Steel, Ltd.

OSAKA STEEL CO., LTD.

Sanyo Special Steel Co., Ltd.

Why is OSAKA STEEL CO., LTD. ?

Poor Management Efficiency with a low ROCE of 3.83%

The company has been able to generate a Return on Capital Employed (avg) of 3.83% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -7.86% of over the last 5 years

With a fall in Net Sales of -18%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
NET SALES(Q) At JPY 23,191 MM has Fallen at -18%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
ROCE(HY) Lowest at -15.66%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -20.62%, its profits have fallen by -95%

Below par performance in long term as well as near term

Along with generating -20.62% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

OSAKA STEEL CO., LTD.

-20.62%

-0.08

48.25%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.34%

EBIT Growth (5y)

-7.86%

EBIT to Interest (avg)

10.86

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.69

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

671

Industry P/E

Price to Book Value

0.87

EV to EBIT

67.14

EV to EBITDA

17.11

EV to Capital Employed

0.87

EV to Sales

1.09

PEG Ratio

Dividend Yield

ROCE (Latest)

1.29%

ROE (Latest)

0.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

NET PROFIT(HY)

Higher at JPY 787.29 MM

-35What is not working for the Company

NET SALES(Q)

At JPY 23,191 MM has Fallen at -18%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

ROCE(HY)

Lowest at -15.66%

INTEREST(Q)

At JPY 81 MM has Grown at 39.66%

PRE-TAX PROFIT(Q)

At JPY 590 MM has Fallen at -57.68%

NET PROFIT(Q)

At JPY 410 MM has Fallen at -62.84%

RAW MATERIAL COST(Y)

Grown by 41.26% (YoY

CASH AND EQV(HY)

Lowest at JPY 40,314 MM

DEBT-EQUITY RATIO (HY)

Highest at -2.86 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.76 times

DIVIDEND PER SHARE(HY)

Lowest at JPY 2.76

EPS(Q)

Lowest at JPY -660.83

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

Net Sales

At JPY 23,191 MM has Fallen at -18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 81 MM has Grown at 39.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 590 MM has Fallen at -57.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 410 MM has Fallen at -62.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Dividend Payout Ratio

Lowest at 0% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

EPS

Lowest at JPY -660.83

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 40,314 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -2.86 %

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

Debtors Turnover Ratio

Lowest at 2.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at JPY 2.76

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Raw Material Cost

Grown by 41.26% (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