Otake Corp. (7434) 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

Denkyo Group Holdings Co. Ltd.

Naito & Co., Ltd.

Otake Corp.

Mansei Corp.

Kimura Co., Ltd.

TORQ, Inc.

A&A Material Corp.

Harima-Kyowa Co., Ltd.

KUWAZAWA Holdings Corp.

Green Cross Co., Ltd.

Sanrin Co., Ltd.

Why is Otake Corp. ?

Poor Management Efficiency with a low ROE of 4.28%

The company has been able to generate a Return on Equity (avg) of 4.28% signifying low profitability per unit of shareholders funds

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

Healthy long term growth as Operating profit has grown by an annual rate 27.88%

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At JPY 3.07 MM has Grown at 70.22%

With ROE of 5.36%, it has a very attractive valuation with a 0.49 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 -0.22%, its profits have fallen by -3.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.22% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Otake Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Otake Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Otake Corp.

1.31%

0.15

19.16%

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)

4.57%

EBIT Growth (5y)

27.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

2.11

Tax Ratio

31.02%

Dividend Payout Ratio

17.10%

Pledged Shares

Institutional Holding

ROCE (avg)

5.86%

ROE (avg)

4.28%

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

0.49

EV to EBIT

6.64

EV to EBITDA

5.73

EV to Capital Employed

0.44

EV to Sales

0.19

PEG Ratio

Dividend Yield

ROCE (Latest)

6.63%

ROE (Latest)

5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Bearish

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 3.02

RAW MATERIAL COST(Y)

Fallen by -3.72% (YoY

CASH AND EQV(HY)

Highest at JPY 3,954.81 MM

DEBT-EQUITY RATIO (HY)

Lowest at -17.25 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.02%

NET SALES(Q)

Highest at JPY 8,588.14 MM

-8What is not working for the Company

INTEREST(9M)

At JPY 3.07 MM has Grown at 70.22%

Here's what is working for Otake Corp.

Dividend per share

Highest at JPY 3.02 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 8,588.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 3,954.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -17.25 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.02%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.72% (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

Depreciation

Highest at JPY 45.35 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 Otake Corp.

Interest

At JPY 2.04 MM has Grown at 38.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)