December 21, 2023
Top 10 Stock Dowa Buy Recommendation

Latest Research

For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Dowa Buy

360 METRICS	December 21, 2023
VALUE
VALUE	67
GROWTH
GROWTH	27
SAFETY
SAFETY	77
SENTIMENT
SENTIMENT	51
360° VIEW
360° VIEW	52

ANALYSIS: With an Obermatt 360° View of 52 (better than 52% compared with alternatives), overall professional sentiment and financial characteristics for the stock Dowa are above average. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for Dowa. The consolidated Value Rank has an attractive rank of 67, which means that the share price of Dowa is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 67% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 77. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 51. But the consolidated Growth Rank has a low rank of 27, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 73 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 52, Dowa is better positioned than 52% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 67), secure financing practices (Safety Rank of 77), and positive market sentiment in the professional investor community (Sentiment Rank of 51). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 27), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of Dowa is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

---

Sentiment Strategy: Professional Market Sentiment for Dowa positive

SENTIMENT METRICS	December 21, 2023
ANALYST OPINION
ANALYST OPINION	5
OPINIONS CHANGE
OPINIONS CHANGE	69
PRO HOLDINGS
PRO HOLDINGS	61
MARKET PULSE
MARKET PULSE	71
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	51

ANALYSIS: With an Obermatt Sentiment Rank of 51 (better than 51% compared with alternatives), overall professional sentiment and engagement for the stock Dowa is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Dowa. Analyst Opinions are at a rank of 5 (worse than 95% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 69, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Dowa. Even better, the Professional Investors rank is 61, meaning that professional investors hold more stock in this company than in 61% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 71, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 71% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 51 (more positive than 51% compared with investment alternatives), Dowa has a reputation among professional investors that is above-average compared with that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

---

Value Strategy: Dowa Stock Price Value better than average

VALUE METRICS	December 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	45
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	69
DIVIDEND YIELD
DIVIDEND YIELD	51
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	67

ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), Dowa shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Dowa. Price-to-Sales (P/S) is 76 which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value for Dowa's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 69. Finally, compared with other companies in the same industry, dividend yields of Dowa are expected to be higher than for 51% of all competitors (a Dividend Yield rank of 51). The only low rank is for expected profits with a Price-to-Profit Rank of 45, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on Dowa's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. ...read more

---

Growth Strategy: Dowa Growth Momentum low

GROWTH METRICS	December 21, 2023
REVENUE GROWTH
REVENUE GROWTH	41
PROFIT GROWTH
PROFIT GROWTH	39
CAPITAL GROWTH
CAPITAL GROWTH	19
STOCK RETURNS
STOCK RETURNS	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	27

ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), Dowa 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 three out of four indicators below average for Dowa. Sales Growth has a below market rank of 41, which means that, currently, professionals expect the company to grow less than 59% of its competitors. The same is valid for Capital Growth, with a rank of 19, and Profit Growth, with a rank of 39. Currently, professionals expect the company to grow its profits less than 61% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 65, which means that the stock returns have recently been above 65% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Dowa, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. ...read more

---

Safety Strategy: Dowa Debt Financing Safety very solid

SAFETY METRICS	December 21, 2023
LEVERAGE
LEVERAGE	46
REFINANCING
REFINANCING	71
LIQUIDITY
LIQUIDITY	87
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	77

ANALYSIS: With an Obermatt Safety Rank of 77 (better than 77% compared with alternatives) for 2023, the company Dowa has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Dowa 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 Dowa. Refinancing is at 71, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 71% of its competitors. Liquidity is also good at 87, meaning the company generates more profit to service its debt than 87% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 46, which means the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 77 (better than 77% compared with alternatives), Dowa has a financing structure that is significantly safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Dowa could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. ...read more

---

Combined financial peformance: Dowa Above-Average Financial Performance

COMBINED PERFORMANCE	December 21, 2023
VALUE
VALUE	67
GROWTH
GROWTH	27
SAFETY
SAFETY	87
COMBINED
COMBINED	64

ANALYSIS: With an Obermatt Combined Rank of 64 (better than 64% compared with investment alternatives), Dowa (Diversified Metals & Mining, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Dowa are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives), are safely financed (Safety Rank of 77, which means low debt burdens), but show below-average growth (Growth Rank of 27). ...read more

RECOMMENDATION: A Combined Rank of 64, is a buy recommendation based on Dowa's financial characteristics. As the company Dowa's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 27) while being safely financed (Obermatt Safety Rank of 77), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 67% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. ...read more

Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.