TOKYO OHKA KOGYO CO., LTD. (4186) 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

Mabuchi Motor Co., Ltd.

Fujikura Ltd.

NGK Insulators, Ltd.

Mitsubishi Electric Corp.

Sumitomo Electric Industries Ltd.

Fuji Electric Co., Ltd.

TOKYO OHKA KOGYO CO., LTD.

NIDEC Corp.

MARUWA CO., LTD.

GS Yuasa Corp.

Tokai Carbon Co., Ltd.

Why is TOKYO OHKA KOGYO CO., LTD. ?

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

Healthy long term growth as Operating profit has grown by an annual rate 28.10%

The company has declared Positive results for the last 4 consecutive quarters

ROCE(HY) Highest at 13.49%
DIVIDEND PER SHARE(HY) Highest at JPY 5.12
INVENTORY TURNOVER RATIO(HY) Highest at 3.72%

With ROE of 15.29%, it has a very attractive valuation with a 2.43 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 68.24%, its profits have risen by 74% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 68.24% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TOKYO OHKA KOGYO CO., LTD. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is TOKYO OHKA KOGYO CO., LTD. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

TOKYO OHKA KOGYO CO., LTD.

68.24%

1.07

39.38%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.50%

EBIT Growth (5y)

28.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.92

Tax Ratio

21.79%

Dividend Payout Ratio

33.64%

Pledged Shares

Institutional Holding

ROCE (avg)

20.66%

ROE (avg)

11.95%

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

2.43

EV to EBIT

11.87

EV to EBITDA

9.69

EV to Capital Employed

2.81

EV to Sales

2.10

PEG Ratio

0.22

Dividend Yield

0.01%

ROCE (Latest)

23.69%

ROE (Latest)

15.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

12What is working for the Company

ROCE(HY)

Highest at 13.49%

DIVIDEND PER SHARE(HY)

Highest at JPY 5.12

INVENTORY TURNOVER RATIO(HY)

Highest at 3.72%

NET SALES(Q)

Highest at JPY 57,351 MM

OPERATING PROFIT(Q)

Highest at JPY 12,128 MM

PRE-TAX PROFIT(Q)

Highest at JPY 10,883 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 25,804.26

RAW MATERIAL COST(Y)

Grown by 6.91% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -20.56 %

INTEREST(Q)

Highest at JPY 47 MM

Here's what is working for TOKYO OHKA KOGYO CO., LTD.

Dividend per share

Highest at JPY 5.12 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 57,351 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 12,128 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 10,883 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 3.72%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for TOKYO OHKA KOGYO CO., LTD.

Interest

At JPY 47 MM has Grown at 135%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 25,804.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 47 MM

in the last five periods and Increased by 135% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -20.56 %

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

Raw Material Cost

Grown by 6.91% (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