Fact based stock research
Dowa (TSE:5714)

JP3638600001

How to read the free ranks

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.

Dowa stock research in summary

dowa.co.jp

ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% 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 77 (better than 77% of alternatives), are safely financed (Safety Rank of 86, which means low debt burdens), but show below-average growth (Growth Rank of 29). ...read more

RECOMMENDATION: A Combined Rank of 65, 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 77) but low growth (Obermatt Growth Rank of 29) while being safely financed (Obermatt Safety Rank of 86), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 77% 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. 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	77
Growth Rank	29
Safety Rank	86
Combined Rank	65

Country	Japan
Industry	Diversified Metals & Mining
Index	Copper, Energy Efficient, Iron, Zinc, SDG 12, Silver, Nikkei 225
Size class	X-Large

This stock has achievements: Top 10 Stock.

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

Further information

Multiple opinions. One number.

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: Dowa

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	90	79	69	77
GROWTH
GROWTH	40	51	27	29
SAFETY
SAFETY	57	74	76	86
SENTIMENT
SENTIMENT	n/a	10	49	^new
360° VIEW
360° VIEW	n/a	63	52	^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 Dowa is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	90	79	69	77
GROWTH
GROWTH	40	51	27	29
SAFETY
SAFETY	57	74	76	86
COMBINED
COMBINED	70	86	64	65

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 77 (better than 77% compared with alternatives) for 2024, Dowa shares are significantly less expensive than 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 75 which means that the stock price compared with what market professionals expect for future sales is lower than for 75% 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 71. Finally, compared with other companies in the same industry, dividend yields of Dowa are expected to be higher than for 52% of all competitors (a Dividend Yield rank of 52). 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 77, 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. 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)	90	80	76	75
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	73	65	45	45
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	78	67	69	71
DIVIDEND YIELD
DIVIDEND YIELD	66	50	51	52
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	90	79	69	77

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% 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 all four metrics below average for Dowa. Sales Growth has a rank of 39, which means that currently professionals expect the company to grow less than 61% of its competitors. The same is valid for Profit Growth, with a rank of 41, and Capital Growth with 36. In addition, Stock Returns have a below market rank of 45, which means that the stock returns have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold 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	60	20	41	39
PROFIT GROWTH
PROFIT GROWTH	100	49	39	41
CAPITAL GROWTH
CAPITAL GROWTH	n/a	75	19	36
STOCK RETURNS
STOCK RETURNS	44	59	71	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	40	51	27	29

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 86 (better than 86% compared with alternatives) for 2024, 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, where all three are above average for Dowa. Leverage is at 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors. Refinancing is at a rank of 71, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 71% of its competitors. Finally, Liquidity is also good at a rank of 86, which means that the company generates more profit to service its debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 86 (better than 86% compared with alternatives), Dowa 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 Dowa 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	26	32	46	56
REFINANCING
REFINANCING	94	73	69	71
LIQUIDITY
LIQUIDITY	50	78	86	86
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	57	74	76	86

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Dowa 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	5	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	12	69	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	45	52	^new
MARKET PULSE
MARKET PULSE	n/a	51	71	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	49	^new

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