Japanese stock alert

JAP

Morning Alert: Oriental Land in 2nd consecutive rise, nears two-month high 27 July 2017 10:56 JST

NEWS BITES - JAPAN

Oriental Land Co., Ltd. (TO:4661) extended its gains Thursday, rising an additional JPY76.0 (or 1.0%) to trade at JPY7,892.0. The stock lifted 2.32% on Wednesday bringing its 2-day rise to 3.3%. It is now approaching its 33-day high of JPY7,895.0.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Oriental Land rises for a second consecutive week, a two-week rise of 3.9% July 26, 2017 15:00 JST

Oriental Land Co., Ltd. (TO:4661) has risen JPY132.0 (or 1.7%) to close at JPY7,816.0. The stock rose for a second consecutive week on Wednesday bringing its two-week rise to JPY291.0 or 3.9%. Compared with the Nikkei 225 Index which fell 48.2 points (or 0.2%) in the two weeks, this represented a relative price increase of 4.1%. The volume was 0.9 times average trading per week of 4 million shares. In the past two weeks the market cap has risen JPY105.8 billion.

1.2 5-day Recap

Oriental Land outperformed the Nikkei 225 index in 3 out of 5 days.

DayHeadlineClose price [JPY]Price change %Relative change %Comment
WednesdayOriental Land hits one-month high on robust volume7,816.02.31.8Top Rise
ThursdayOriental Land up 2.1% in 2 days7,785.01.30.7

Note

DayHeadlineClose price [JPY]Price change %Relative change %Comment
TuesdayOriental Land decreases7,639.0-0.4-0.3
MondayOriental Land decreases7,673.0-0.60.2
FridayOriental Land decreases7,723.0-0.8-0.6Steepest Fall

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Equity 12.3% [3.5%]

Return on Capital Employed 15.5% [11.0%]

Total Liabilities/EBITDA of 1.6 is comfortably below the Joseph Piotroski benchmark of <5.

Overvaluation:

Price/Sales of 6 [1.0]

Price to Book of 4.3 [1.5]

Dividend yield of 0.5% [1.7%]

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US billion25.4In Top 2%
52-week Range (in JPY)5,804.7-7,895.0
1-month Range (in JPY)7,419.0-7,895.0
Bollinger Bands1.1Bearish

SECTION 3: Earnings

Annual Report: Oriental Land Net Profit up 11.4%

Oriental Land (TO:4661) reported net profit for the year-ended 31 March 2017 of JPY82.4b ($US740m), up 11.4% from JPY73.9b ($US657m) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Net profit up 11.4% from JPY73.9b ($US656.6m) to JPY82.4b ($US739.9m)

- EBIT Margin up from 23.5% to 24.0%

- Interest cover up 8.5% from 503.9 to 546.8

- Profit before tax to Sales up from 23.5% to 24%

- Current ratio up 16.2% from 2.5 to 2.9

- Working capital to total assets up from 21.6% to 24.5%

- Retained earnings to total assets up from 59.4% to 64.9%

- Total current assets to Total Assets up from 36.3% to 37.5%

- Cash to Total Assets up from 25.8% to 31%

- Total Liabilities to EBITDA of 1.6 compares favourably with the Joseph Piotroski benchmark of less than 5. This ratio has improved by 7.1% from the previous year's ratio of 1.7.

- Total Liabilities to Operating Cash Flow of 1.5 compares favourably with the Joseph Piotroski benchmark of less than 4. This ratio has improved by 8.4% from the previous year's ratio of 1.7.

Note:

- EBIT to total assets steady at 13.5%

- Total revenue to total assets steady at 0.6

- Cost of Goods Sold to Sales down from 63.2% to 62.7%

- Sales and marketing expenses to Sales down from 13.7% to 13.6%

- Tax expenses to Sales down from 7.6% to 6.7%

- Total liabilities to Total assets steady at 0.2

- Total non-current assets to Total Assets down from 63.7% to 62.5%

- Fixed Assets to Total Assets down from 54.2% to 53.2%

- Long-term investments to Total Assets steady at 6.8%

SECTION 4: Recent News of Oriental Land

June 26: Oriental Land: Results and Completion of Share Repurchase

Oriental Land Co., Ltd. today announced the results and completion of its share repurchase implemented based on the resolution in its Board of Directors held on April 27, 2017 under Article 156 of the Corporate Law of Japan, as applied pursuant to Article 165 (3) of the said law, as follows.

Source: Tokyo Stock Exchange

June 01: Oriental Land announces AGM

Oriental Land has announced its Annual General Meeting will take place on Thursday, June 29.

Oriental Land Co., Ltd. (TO:4661; TYO:4661; T:4661; JP:4661)

ISIN: JP3198900007

Source: www.BuySellSignals.com