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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mansei Corp.

Denkyo Group Holdings Co. Ltd.

Naito & Co., Ltd.

Sanrin Co., Ltd.

KUWAZAWA Holdings Corp.

A&A Material Corp.

Green Cross Co., Ltd.

Harima-Kyowa Co., Ltd.

Otake Corp.

Kimura Co., Ltd.

TORQ, Inc.

Why is Otake Corp. ?

Poor Management Efficiency with a low ROE of 4.67%

The company has been able to generate a Return on Equity (avg) of 4.67% signifying low profitability per unit of shareholders funds

The company declared negative results in Feb'26 after flat results in Nov'25

INTEREST COVERAGE RATIO(Q) Lowest at 3,348.8
DEBT-EQUITY RATIO (HY) Highest at -4.11 %
INVENTORY TURNOVER RATIO(HY) Lowest at 8.5 times

With ROE of 5.77%, 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 5.72%, its profits have risen by 21% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 5.72% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

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 Trading & Distributors)

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

Is Otake Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Otake Corp.

5.72%

0.07

18.07%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.44%

EBIT Growth (5y)

67.97%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

2.08

Tax Ratio

31.02%

Dividend Payout Ratio

17.10%

Pledged Shares

Institutional Holding

ROCE (avg)

5.86%

ROE (avg)

4.67%

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

4.97

EV to EBITDA

4.29

EV to Capital Employed

0.39

EV to Sales

0.16

PEG Ratio

0.40

Dividend Yield

ROCE (Latest)

7.93%

ROE (Latest)

5.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JPY 4,926.97 MM

-20What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,348.8

DEBT-EQUITY RATIO (HY)

Highest at -4.11 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.5 times

INTEREST(Q)

Highest at JPY 7.17 MM

OPERATING PROFIT(Q)

Lowest at JPY 240.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.69 %

PRE-TAX PROFIT(Q)

Lowest at JPY 229.16 MM

NET PROFIT(Q)

Lowest at JPY 150.46 MM

EPS(Q)

Lowest at JPY 38.36

Here's what is working for Otake Corp.

Cash and Eqv

Highest at JPY 4,926.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 51 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 7.17 MM has Grown at 667.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,348.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 7.17 MM

in the last five periods and Increased by 667.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 240.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 229.16 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 150.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 38.36

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -4.11 %

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

Inventory Turnover Ratio

Lowest at 8.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio