Fact based stock research
Chugoku Electric Power (TSE:9504)

JP3522200009

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Chugoku Electric Power stock research in summary

energia.co.jp

ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), Chugoku Electric Power (Electric Utilities, Japan) shares have lower financial characteristics compared with similar stocks. Shares of Chugoku Electric Power are a good value (attractively priced) with a consolidated Value Rank of 65 (better than 65% of alternatives) but show below-average growth (Growth Rank of 3), and are riskily financed (Safety Rank of 28), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on Chugoku Electric Power's financial characteristics. As the company Chugoku Electric Power's key financial metrics exhibit good value (Obermatt Value Rank of 65) but low growth (Obermatt Growth Rank of 3) and risky financing practices (Obermatt Safety Rank of 28), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 65% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. 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	65
Growth Rank	3
Safety Rank	28
Combined Rank	10

Country	Japan
Industry	Electric Utilities
Index
Size class	X-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: Chugoku Electric Power

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	43	63	65
GROWTH
GROWTH	3	9	69	3
SAFETY
SAFETY	17	1	6	28
SENTIMENT
SENTIMENT	n/a	10	31	^new
360° VIEW
360° VIEW	n/a	1	22	^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 Chugoku Electric Power is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	43	63	65
GROWTH
GROWTH	3	9	69	3
SAFETY
SAFETY	17	1	6	28
COMBINED
COMBINED	23	4	24	10

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 65 (better than 65% compared with alternatives), Chugoku Electric Power shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Chugoku Electric Power. Price-to-Sales (P/S) is 89, which means that the stock price compared with what market professionals expect for future sales is lower than for 89% of comparable companies, indicating a good value regarding Chugoku Electric Power's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 92% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 91. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 8% of all competitors have even lower dividend yields than Chugoku Electric Power (a Dividend Yield Rank of 8). 92% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 65, is a buy recommendation based on Chugoku Electric Power's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	100	81	85	89
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	31	97	92
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	98	85	85	91
DIVIDEND YIELD
DIVIDEND YIELD	67	9	11	8
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	84	43	63	65

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 3 (better than 3% compared with alternatives), Chugoku Electric Power shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Chugoku Electric Power. Sales Growth has a rank of 31, which means that currently professionals expect the company to grow less than 69% of its competitors. The same is valid for Profit Growth, with a rank of 1, and Capital Growth with 23. In addition, Stock Returns have a below market rank of 11, which means that the stock returns have recently been below 89% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 3, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. 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, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	6	73	12	31
PROFIT GROWTH
PROFIT GROWTH	27	4	90	1
CAPITAL GROWTH
CAPITAL GROWTH	n/a	5	19	23
STOCK RETURNS
STOCK RETURNS	10	9	97	11
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	3	9	69	3

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company Chugoku Electric Power has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Chugoku Electric Power is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Chugoku Electric Power. Liquidity is at 76, meaning the company generates more profit to service its debt than 76% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 41, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 59% of its competitors. Leverage is also high at a rank of 1, which means that the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), Chugoku Electric Power has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	1	4	1	1
REFINANCING
REFINANCING	85	3	17	41
LIQUIDITY
LIQUIDITY	3	28	10	76
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	17	1	6	28

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Chugoku Electric Power 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	21	4	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	99	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	54	43	^new
MARKET PULSE
MARKET PULSE	n/a	6	26	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	31	^new

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