Fact based stock research
Aica Kogyo (TSE:4206)

JP3100800006

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Aica Kogyo stock research in summary

aica.co.jp

ANALYSIS: With an Obermatt Combined Rank of 75 (better than 75% compared with investment alternatives), Aica Kogyo (Specialty Chemicals, Japan) shares have much better financial characteristics than comparable stocks. Shares of Aica Kogyo are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives). But they show above-average growth (Growth Rank of 63) and are safely financed (Safety Rank of 93, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 75, is a strong buy recommendation based on Aica Kogyo's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Aica Kogyo exhibits low value (Obermatt Value Rank of 43), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 63). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 93) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	43
Growth Rank	63
Safety Rank	93
Combined Rank	75

Country	Japan
Industry	Specialty Chemicals
Index
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Aica Kogyo

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	81	39	55	43
GROWTH
GROWTH	29	31	41	63
SAFETY
SAFETY	100	86	74	93
SENTIMENT
SENTIMENT	n/a	18	76	^new
360° VIEW
360° VIEW	n/a	29	65	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Aica Kogyo is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	81	39	55	43
GROWTH
GROWTH	29	31	41	63
SAFETY
SAFETY	100	86	74	93
COMBINED
COMBINED	80	52	56	75

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Aica Kogyo the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), Aica Kogyo shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Aica Kogyo. Price-to-Profit (also referred to as price-earnings, P/E) is 55 which means that the stock price compared with what market professionals expect for future profits is lower than for 55% of comparable companies, indicating a good value concerning Aica Kogyo's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 25, which means that the stock price is lower as regards to invested capital than for 25% of comparable investments. On the other hand, Price-to-Sales is less favorable than 62% of alternatives (only 38% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 44% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on Aica Kogyo's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	73	41	46	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59	28	58	55
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	66	39	38	25
DIVIDEND YIELD
DIVIDEND YIELD	88	65	78	56
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	81	39	55	43

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Aica Kogyo; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 63 (better than 63% compared with alternatives), Aica Kogyo shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Aica Kogyo. Sales Growth has a rank of 68 which means that currently, professionals expect the company to grow more than 68% of its competitors. Capital Growth is also above 42% of competitors with a rank of 60, and Stock Returns with the rank of 63 is also an outperformance. Only Profit Growth is low with a rank of 42 which means that currently, professionals expect the company to grow its profits less than 58% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 63, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Aica Kogyo is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	33	75	42	68
PROFIT GROWTH
PROFIT GROWTH	40	22	73	42
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	33	60
STOCK RETURNS
STOCK RETURNS	32	23	43	63
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	29	31	41	63

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Aica Kogyo.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 93 (better than 93% compared with alternatives) for 2024, the company Aica Kogyo has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Aica Kogyo is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Aica Kogyo. Leverage is at 72, meaning the company has a below-average debt-to-equity ratio. It has less debt than 72% of its competitors. Refinancing is at a rank of 67, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Finally, Liquidity is also good at a rank of 89, which means that the company generates more profit to service its debt than 89% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 93 (better than 93% compared with alternatives), Aica Kogyo has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Aica Kogyo but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	92	84	68	72
REFINANCING
REFINANCING	84	59	59	67
LIQUIDITY
LIQUIDITY	100	78	82	89
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	86	74	93

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Aica Kogyo and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	38	60	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	95	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	30	83	^new
MARKET PULSE
MARKET PULSE	n/a	28	22	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	18	76	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Aica Kogyo.
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