Oomitsu Co., Ltd. engages in the wholesale and retail of food products. The company was founded in 1948 and is headquartered in Ogaki, Japan.

Japan

Oomitsu Co., Ltd.

Consumer Defensive

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been moderate and on par with its peers. 

3160.T reported revenue of JPY 73 876mn in the last 12 months, up 1% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 19% from FY24 to JPY 71.48.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 3ppts over six months and grown 2ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 1.6% in the last 12 months, up from 1.4% in FY24. 

Historically, 3160.T has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 1.4%, a growth from 1.2% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to 8.3%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 4.1% in the last 12 months, an increase from 3.7% in FY24. 

Oomitsu Co., Ltd. reported a return on equity (RoE) of 16.3% in the last 12 months, up from 14.5% in FY24. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.1 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

3160.T has very poor trading liquidity. It will take several trading days for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, poor working capital management, and weak debt servicing capacity. We note low margin volatility and adequate interest coverage, among the positive credit factors. 

In highly turbulent market conditions, 3160.T is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, 3160.T is not overly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will remain relatively stable. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is underpriced on P/E, 'expensive' on EV/EBITD. 

Oomitsu Co., Ltd.

¥ 585

4

Oomitsu Co., Ltd.

¥ 585

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

¥ 585

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