OTSUKA CORP. (4768) 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

OBIC Co. Ltd.

NEC Corp.

Fujitsu Ltd.

OTSUKA CORP.

NS Solutions Corp.

TIS, Inc. (Japan)

GMO Internet Group, Inc.

SHIFT, Inc.

Nomura Research Institute Ltd.

Fuji Soft, Inc.

NEC Networks & System Integration Corp.

Why is OTSUKA CORP. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.82%

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

Flat results in Mar 26

INTEREST(Q) Highest at JPY 20 MM

With ROE of 16.59%, it has a very attractive valuation with a 2.87 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 -6.67%, its profits have risen by 16.9% ; the PEG ratio of the company is 1

Majority shareholders : Non Institution

Below par performance in long term as well as near term

Along with generating -6.67% 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 hold?

Overall Portfolio exposure to OTSUKA CORP. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is OTSUKA CORP. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

OTSUKA CORP.

-5.96%

-0.19

26.88%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.60%

EBIT Growth (5y)

9.82%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

3.11

Tax Ratio

26.86%

Dividend Payout Ratio

53.07%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

55.41%

ROE (avg)

14.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.87

EV to EBIT

9.82

EV to EBITDA

8.90

EV to Capital Employed

5.96

EV to Sales

0.67

PEG Ratio

1.02

Dividend Yield

ROCE (Latest)

60.66%

ROE (Latest)

16.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at JPY 115,478 MM

ROCE(HY)

Highest at 17.76%

RAW MATERIAL COST(Y)

Fallen by 0.11% (YoY

CASH AND EQV(HY)

Highest at JPY 512,128 MM

-10What is not working for the Company

INTEREST(Q)

Highest at JPY 20 MM

Here's what is working for OTSUKA CORP.

Operating Cash Flow

Highest at JPY 115,478 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 512,128 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.11% (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 OTSUKA CORP.

Interest

At JPY 20 MM has Grown at 11.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 20 MM

in the last five periods and Increased by 11.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income