Otani Kogyo Co., Ltd. (5939) 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

Onamba Co., Ltd.

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Kawaden Corp.

Mitsuboshi Co., Ltd.

The Kodensha, Co., Ltd.

Canare Electric Co., Ltd.

Otani Kogyo Co., Ltd.

Fuji Electric Industry Co., Ltd.

Origin Co., Ltd.

Almedio, Inc.

Why is Otani Kogyo Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.73%

The company has been able to generate a Return on Equity (avg) of 6.73% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 8.90% of over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at JPY 122.2 MM
NET PROFIT(9M) At JPY 237.76 MM has Grown at -29.15%
ROCE(HY) Lowest at 6.48%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.32% 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 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 Electronics & Appliances)

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

Is Otani Kogyo Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Otani Kogyo Co., Ltd.

-100.0%

-0.36

50.96%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.61%

EBIT Growth (5y)

8.90%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

1.86

Tax Ratio

22.24%

Dividend Payout Ratio

6.33%

Pledged Shares

Institutional Holding

ROCE (avg)

14.20%

ROE (avg)

6.73%

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

1.06

EV to EBIT

6.11

EV to EBITDA

4.82

EV to Capital Employed

1.10

EV to Sales

0.37

PEG Ratio

1.13

Dividend Yield

0.01%

ROCE (Latest)

17.92%

ROE (Latest)

9.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.36% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.34 times

OPERATING PROFIT(Q)

Highest at JPY 217.65 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.68 %

PRE-TAX PROFIT(Q)

At JPY 142.38 MM has Grown at 65.36%

NET PROFIT(Q)

At JPY 112.56 MM has Grown at 58.99%

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 122.2 MM

NET PROFIT(9M)

At JPY 237.76 MM has Grown at -29.15%

ROCE(HY)

Lowest at 6.48%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.09 times

NET SALES(Q)

Lowest at JPY 1,864.14 MM

INTEREST(Q)

Highest at JPY 11.81 MM

Here's what is working for Otani Kogyo Co., Ltd.

Operating Profit

Highest at JPY 217.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 11.68 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 142.38 MM has Grown at 65.36%

over average net sales of the previous four periods of JPY 86.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 112.56 MM has Grown at 58.99%

over average net sales of the previous four periods of JPY 70.79 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 4.34 times

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 -0.36% (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 66.47 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 Otani Kogyo Co., Ltd.

Interest

At JPY 11.81 MM has Grown at 31.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 122.2 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Sales

Lowest at JPY 1,864.14 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 11.81 MM

in the last five periods and Increased by 31.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio