ScoreWhy is Otec Corp. ?
1
Weak Long Term Fundamental Strength with a 19.41% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate 19.41% of over the last 5 years
3
Negative results in Jun 26
- INTEREST COVERAGE RATIO(Q) Lowest at 5,285.88
- NET SALES(Q) Lowest at JPY 6,425.23 MM
- INTEREST(Q) Highest at JPY 10.34 MM
4
With ROE of 14.36%, it has a very attractive valuation with a 1.62 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 39.10%, its profits have risen by 81.2%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Otec Corp. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Otec Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Otec Corp.
39.21%
3.17
35.97%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.33%
EBIT Growth (5y)
19.41%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
1.32
Tax Ratio
31.23%
Dividend Payout Ratio
35.03%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.47%
ROE (avg)
8.92%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.62
EV to EBIT
6.56
EV to EBITDA
5.99
EV to Capital Employed
1.93
EV to Sales
0.96
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
29.42%
ROE (Latest)
14.36%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -7.24% (YoY
CASH AND EQV(HY)
Highest at JPY 24,236.56 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -39.6 %
DEBTORS TURNOVER RATIO(HY)
Highest at 4.77 times
-15What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 5,285.88
NET SALES(Q)
Lowest at JPY 6,425.23 MM
INTEREST(Q)
Highest at JPY 10.34 MM
OPERATING PROFIT(Q)
Lowest at JPY 546.35 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.5 %
PRE-TAX PROFIT(Q)
Lowest at JPY 597.26 MM
NET PROFIT(Q)
Lowest at JPY 341.92 MM
EPS(Q)
Lowest at JPY 21.99
Here's what is working for Otec Corp.
Cash and Eqv
Highest at JPY 24,236.56 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -39.6 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 4.77 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -7.24% (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
Here's what is not working for Otec Corp.
Interest Coverage Ratio
Lowest at 5,285.88
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 6,425.23 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 10.34 MM
in the last five periods and Increased by 5.59% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 546.35 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 8.5 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 597.26 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 341.92 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 21.99
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Non Operating Income
Highest at JPY 0.31 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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