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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shionogi & Co., Ltd.

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Otsuka Holdings Co., Ltd.

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Astellas Pharma, Inc.

Daiichi Sankyo Co., Ltd.

Kobayashi Pharmaceutical Co., Ltd.

Eisai Co., Ltd.

Takeda Pharmaceutical Co., Ltd.

Taisho Pharmaceutical Holdings Co., Ltd.

Why is Otsuka Holdings Co., Ltd. ?

Strong Long Term Fundamental Strength with a 15.14% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.59
The company has been able to generate a Return on Capital Employed (avg) of 12.29% signifying high profitability per unit of total capital (equity and debt)

With ROE of 12.76%, it has a fair valuation with a 1.99 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 54.32%, its profits have fallen by -10.8%

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.

54.32%

840.53

29.82%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.65%

EBIT Growth (5y)

15.14%

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

20.44%

Pledged Shares

Institutional Holding

0.28%

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

1.99

EV to EBIT

13.70

EV to EBITDA

10.69

EV to Capital Employed

2.13

EV to Sales

2.29

PEG Ratio

Dividend Yield

ROCE (Latest)

15.58%

ROE (Latest)

12.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.03% (YoY

CASH AND EQV(HY)

Highest at JPY 1,072,941 MM

DEBT-EQUITY RATIO (HY)

Lowest at -11.06 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.92 times

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.05 times

INTEREST(Q)

At JPY 2,043 MM has Grown at inf%

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

Cash and Eqv

Highest at JPY 1,072,941 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -11.06 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.03% (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 Holdings Co., Ltd.

Interest

At JPY 2,043 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 2.05 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio