Fact based stock research
Daito Trust Construction (TSE:1878)

JP3486800000

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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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Daito Trust Construction stock research in summary

kentaku.co.jp

ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), Daito Trust Construction (Real Estate: Diversified Operations, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Daito Trust Construction are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives) and show below-average growth (Growth Rank of 41) but are safely financed (Safety Rank of 93), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on Daito Trust Construction's financial characteristics. As the company Daito Trust Construction's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 37) and low growth (Obermatt Growth Rank of 41), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 93) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. 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	37
Growth Rank	41
Safety Rank	93
Combined Rank	63

Country	Japan
Industry	Real Estate: Diversified Operations
Index	TOPIX 100
Size class	X-Large

This stock has achievements: Top 10 Stock.

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: Daito Trust Construction

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	47	44	37
GROWTH
GROWTH	49	41	33	41
SAFETY
SAFETY	90	100	100	93
SENTIMENT
SENTIMENT	n/a	33	46	^new
360° VIEW
360° VIEW	n/a	65	60	^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 Daito Trust Construction is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	47	44	37
GROWTH
GROWTH	49	41	33	41
SAFETY
SAFETY	90	100	100	93
COMBINED
COMBINED	83	78	66	63

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), Daito Trust Construction shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Daito Trust Construction. Price-to-Sales (P/S) is 87, which means that the stock price compared with what market professionals expect for future sales is lower than 87% of comparable companies, indicating a good value concerning to Daito Trust Construction's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 49, meaning that dividends are expected to be lower than for 51% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 93% of alternatives (only 7% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 58% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on Daito Trust Construction's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Daito Trust Construction could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Daito Trust Construction looks like an expensive investment today. 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)	82	85	81	87
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	73	47	42	42
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	29	13	7	7
DIVIDEND YIELD
DIVIDEND YIELD	79	70	57	49
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69	47	44	37

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), Daito Trust Construction shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Daito Trust Construction. Sales Growth has a rank of 51, which means that, currently, professionals expect the company to grow more than 51% of its competitors. Profit Growth with a rank of 54 is also above average. But Capital Growth has only a rank of 28, and Stock Returns with 45 are also below-average. Stock returns for Daito Trust Construction have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Daito Trust Construction. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	36	53	38	51
PROFIT GROWTH
PROFIT GROWTH	19	27	40	54
CAPITAL GROWTH
CAPITAL GROWTH	n/a	22	45	28
STOCK RETURNS
STOCK RETURNS	85	85	65	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	49	41	33	41

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 93 (better than 93% compared with alternatives) for 2024, the company Daito Trust Construction has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Daito Trust Construction 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, with two out of three indicators above average for Daito Trust Construction. Leverage is at a rank of 83, meaning the company has a below-average debt-to-equity ratio. It has less debt than 83% of its competitors. Liquidity is also good at a rank of 91, meaning the company generates more profit to service its debt than 91% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 48, 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 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 93 (better than 93% compared with alternatives), Daito Trust Construction has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Daito Trust Construction. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Daito Trust Construction and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	90	76	85	83
REFINANCING
REFINANCING	44	66	53	48
LIQUIDITY
LIQUIDITY	100	94	96	91
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90	100	100	93

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Daito Trust Construction 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	25	44	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	72	15	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	33	82	^new
MARKET PULSE
MARKET PULSE	n/a	58	75	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	33	46	^new

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