Fact based stock research
ARIAKE JAPAN (TSE:2815)

JP3125800007

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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.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

ARIAKE JAPAN stock research in summary

ariakejapan.com

ANALYSIS: With an Obermatt Combined Rank of 95 (better than 95% compared with investment alternatives), ARIAKE JAPAN (Packaged Foods & Meats, Japan) shares have much better financial characteristics than comparable stocks. Shares of ARIAKE JAPAN are low in value (priced high) with a consolidated Value Rank of 21 (worse than 79% of alternatives). But they show above-average growth (Growth Rank of 95) and are safely financed (Safety Rank of 100, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 95, is a strong buy recommendation based on ARIAKE JAPAN's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company ARIAKE JAPAN exhibits low value (Obermatt Value Rank of 21), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 95). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 100) 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	21
Growth Rank	95
Safety Rank	100
Combined Rank	95

Country	Japan
Industry	Packaged Foods & Meats
Index
Size class	Medium

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

Further information

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Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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

Research History: ARIAKE JAPAN

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	61	21	34	21
GROWTH
GROWTH	40	67	43	95
SAFETY
SAFETY	100	100	100	100
SENTIMENT
SENTIMENT	n/a	87	34	^new
360° VIEW
360° VIEW	n/a	97	59	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better ARIAKE JAPAN is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	61	21	34	21
GROWTH
GROWTH	40	67	43	95
SAFETY
SAFETY	100	100	100	100
COMBINED
COMBINED	83	89	76	95

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of ARIAKE JAPAN the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 21 (worse than 79% compared with alternatives), ARIAKE JAPAN shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for ARIAKE JAPAN. Price-to-Sales is 3 which means that the stock price compared with what market professionals expect for future profits is higher than 97% of comparable companies, indicating a low value concerning ARIAKE JAPAN's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 46, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of ARIAKE JAPAN. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 17 and Dividend Yield, which is lower than 56% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 21, is a sell recommendation based on ARIAKE JAPAN's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for ARIAKE JAPAN? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as ARIAKE JAPAN? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. ARIAKE JAPAN may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. 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 essential 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)	27	7	7	3
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	66	21	33	17
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	60	34	45	46
DIVIDEND YIELD
DIVIDEND YIELD	54	52	55	44
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	61	21	34	21

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of ARIAKE JAPAN; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 95 (better than 95% compared with alternatives) for 2024, ARIAKE JAPAN shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for ARIAKE JAPAN. Sales Growth has a rank of 87 which means that currently, professionals expect the company to grow more than 87% of its competitors. Capital Growth is also above 47% of competitors with a rank of 99, and Stock Returns with the rank of 75 is also an outperformance. Only Profit Growth is low with a rank of 47 which means that currently, professionals expect the company to grow its profits less than 53% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 95, 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, ARIAKE JAPAN 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	35	84	79	87
PROFIT GROWTH
PROFIT GROWTH	100	48	50	47
CAPITAL GROWTH
CAPITAL GROWTH	n/a	43	25	99
STOCK RETURNS
STOCK RETURNS	46	39	47	75
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	40	67	43	95

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of ARIAKE JAPAN.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2024, the company ARIAKE JAPAN has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of ARIAKE JAPAN 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 ARIAKE JAPAN. Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors. Refinancing is at a rank of 77, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 77% of its competitors. Finally, Liquidity is also good at a rank of 100, which means that the company generates more profit to service its debt than 100% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), ARIAKE JAPAN 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 ARIAKE JAPAN 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	100	100	100	100
REFINANCING
REFINANCING	42	85	89	77
LIQUIDITY
LIQUIDITY	100	100	99	100
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	100	100	100

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of ARIAKE JAPAN 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	87	64	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	55	8	^new
MARKET PULSE
MARKET PULSE	n/a	62	59	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	87	34	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for ARIAKE JAPAN.
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