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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fujitsu Ltd.

Nomura Research Institute Ltd.

OTSUKA CORP.

OBIC Co. Ltd.

TIS, Inc. (Japan)

NEC Networks & System Integration Corp.

GMO Internet Group, Inc.

SHIFT, Inc.

NEC Corp.

NS Solutions Corp.

Fuji Soft, Inc.

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

With ROE of 16.51%, it has a very attractive valuation with a 3.13 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 -13.19%, its profits have risen by 21.5%

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.

-12.52%

0.45

25.27%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.33%

EBIT Growth (5y)

4.21%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

2.96

Tax Ratio

26.86%

Dividend Payout Ratio

56.72%

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

3.13

EV to EBIT

11.78

EV to EBITDA

10.63

EV to Capital Employed

5.66

EV to Sales

0.80

PEG Ratio

Dividend Yield

ROCE (Latest)

48.09%

ROE (Latest)

16.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

OBV

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

16What is working for the Company

ROCE(HY)

Highest at 16.82%

DIVIDEND PAYOUT RATIO(Y)

Highest at 86.9%

DIVIDEND PER SHARE(HY)

Highest at JPY 5.75

NET SALES(Q)

Highest at JPY 379,591 MM

OPERATING PROFIT(Q)

Highest at JPY 30,309 MM

PRE-TAX PROFIT(Q)

Highest at JPY 28,240 MM

NET PROFIT(Q)

Highest at JPY 19,635 MM

EPS(Q)

Highest at JPY 51.78

-13What is not working for the Company

INTEREST(HY)

At JPY 31 MM has Grown at 47.62%

OPERATING CASH FLOW(Y)

Lowest at JPY 30,433 MM

RAW MATERIAL COST(Y)

Grown by 8.66% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.75%

Here's what is working for OTSUKA CORP.

Net Sales

At JPY 379,591 MM has Grown at 31.28%

over average net sales of the previous four periods of JPY 289,136.25 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 379,591 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 30,309 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 28,240 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 19,635 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 51.78

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Dividend per share

Highest at JPY 5.75

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 86.9%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 2,311 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

At JPY 31 MM has Grown at 47.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 30,433 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Debtors Turnover Ratio

Lowest at 5.75%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales