Otsuka Holdings Co., Ltd. (4578) 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

Ono Pharmaceutical Co., Ltd.

Astellas Pharma, Inc.

Shionogi & Co., Ltd.

Chugai Pharmaceutical Co., Ltd.

Otsuka Holdings Co., Ltd.

Daiichi Sankyo Co., Ltd.

Takeda Pharmaceutical Co., Ltd.

Eisai Co., Ltd.

Kobayashi Pharmaceutical Co., Ltd.

Kyowa Kirin Co., Ltd.

Taisho Pharmaceutical Holdings Co., Ltd.

Why is Otsuka Holdings Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.59

Healthy long term growth as Operating profit has grown by an annual rate 18.02%

With ROE of 16.65%, it has a attractive valuation with a 1.43 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 17.18%, its profits have risen by 47.4% ; the PEG ratio of the company is 0.2

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Otsuka Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

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

Is Otsuka Holdings Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Otsuka Holdings Co., Ltd.

17.18%

673.08

32.47%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.97%

EBIT Growth (5y)

18.02%

EBIT to Interest (avg)

27.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.80

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

18.93%

Pledged Shares

Institutional Holding

0.30%

ROCE (avg)

12.29%

ROE (avg)

10.53%

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

1.43

EV to EBIT

8.30

EV to EBITDA

6.62

EV to Capital Employed

1.47

EV to Sales

1.49

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

17.76%

ROE (Latest)

16.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 434,323 MM

ROCE(HY)

Highest at 15.3%

RAW MATERIAL COST(Y)

Fallen by 0.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.62%

DIVIDEND PER SHARE(HY)

Highest at JPY 4.62

-12What is not working for the Company

INTEREST(HY)

At JPY 23,477 MM has Grown at 403.37%

DEBT-EQUITY RATIO (HY)

Highest at -7.33 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 41.78%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.07%

Here's what is working for Otsuka Holdings Co., Ltd.

Operating Cash Flow

Highest at JPY 434,323 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debtors Turnover Ratio

Highest at 4.62%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 4.62

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 0.48% (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 28,022 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 Holdings Co., Ltd.

Interest

At JPY 23,477 MM has Grown at 403.37%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -7.33 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.07%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 41.78%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)