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

OTSUKA CORP.

OBIC Co. Ltd.

NS Solutions Corp.

NEC Corp.

Fujitsu Ltd.

Nomura Research Institute Ltd.

TIS, Inc. (Japan)

GMO Internet Group, Inc.

SHIFT, Inc.

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

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at JPY 89,605 MM
ROCE(HY) Highest at 16.98%
DIVIDEND PAYOUT RATIO(Y) Highest at 102.77%

With ROE of 17.41%, it has a attractive valuation with a 2.71 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 14.55%, its profits have risen by 16.1% ; the PEG ratio of the company is 1

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you buy?

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.

14.55%

0.91

28.21%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.69%

EBIT Growth (5y)

10.17%

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

27.37%

Dividend Payout Ratio

53.07%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

56.86%

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

2.71

EV to EBIT

8.78

EV to EBITDA

7.95

EV to Capital Employed

5.86

EV to Sales

0.60

PEG Ratio

0.97

Dividend Yield

ROCE (Latest)

66.74%

ROE (Latest)

17.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 89,605 MM

ROCE(HY)

Highest at 16.98%

DIVIDEND PAYOUT RATIO(Y)

Highest at 102.77%

CASH AND EQV(HY)

Highest at JPY 519,164 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 5.38

NET SALES(Q)

Highest at JPY 412,745 MM

OPERATING PROFIT(Q)

Highest at JPY 32,642 MM

PRE-TAX PROFIT(Q)

Highest at JPY 30,405 MM

NET PROFIT(Q)

Highest at JPY 21,038.23 MM

EPS(Q)

Highest at JPY 53.52

-10What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.38 times

INTEREST(Q)

Highest at JPY 21 MM

Here's what is working for OTSUKA CORP.

Operating Cash Flow

Highest at JPY 89,605 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 412,745 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 412,745 MM has Grown at 22.11%

over average net sales of the previous four periods of JPY 338,000.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 32,642 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 30,405 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 21,038.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 53.52

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 519,164 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 5.38

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 102.77%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 3,059 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 OTSUKA CORP.

Interest

Highest at JPY 21 MM

in the last five periods and Increased by 5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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