Fact based stock research
Funai Soken Holdings Incorporated (TSE:9757)

JP3825800000

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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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Funai Soken Holdings Incorporated stock research in summary

hd.funaisoken.co.jp

ANALYSIS: With an Obermatt Combined Rank of 58 (better than 58% compared with investment alternatives), Funai Soken Holdings Incorporated (Research & Consulting, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Funai Soken Holdings Incorporated are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives) and show below-average growth (Growth Rank of 49) but are safely financed (Safety Rank of 85), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 58, is a buy recommendation based on Funai Soken Holdings Incorporated's financial characteristics. As the company Funai Soken Holdings Incorporated's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 25) and low growth (Obermatt Growth Rank of 49), 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 85) 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	25
Growth Rank	49
Safety Rank	85
Combined Rank	58

Country	Japan
Industry	Research & Consulting
Index
Size class	Small

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

Research History: Funai Soken Holdings Incorporated

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	30	21	21	25
GROWTH
GROWTH	63	19	27	49
SAFETY
SAFETY	87	80	69	85
SENTIMENT
SENTIMENT	n/a	60	25	^new
360° VIEW
360° VIEW	n/a	29	6	^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 Funai Soken Holdings Incorporated is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	30	21	21	25
GROWTH
GROWTH	63	19	27	49
SAFETY
SAFETY	87	80	69	85
COMBINED
COMBINED	70	24	28	58

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Funai Soken Holdings Incorporated shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Funai Soken Holdings Incorporated. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 65% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 20 which means that the stock price compared with what market professionals expect for future profits is higher than 80% of comparable companies, indicating a low value concerning Funai Soken Holdings Incorporated's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 42 which means that the stock price compared with what market professionals expect for future profit levels is higher than 58% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 25 is also low. Compared with invested capital, the stock price is higher than for 75% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Funai Soken Holdings Incorporated's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Funai Soken Holdings Incorporated? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Funai Soken Holdings Incorporated only if they reasonably expect the low current profit levels to be transitory. 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)	23	26	17	20
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	41	45	42
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	16	36	28	25
DIVIDEND YIELD
DIVIDEND YIELD	62	37	50	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	30	21	21	25

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Funai Soken Holdings Incorporated 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 Funai Soken Holdings Incorporated. Only Capital Growth has a good rank of 55, which means that currently professionals expect the company to grow its invested capital more than 45% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 45 which means that currently professionals expect the company to grow less than 55% of its competitors. Profit Growth with a rank of 45 and Stock Returns with a rank of 39 are also low (below 61% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Funai Soken Holdings Incorporated is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the 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, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	43	33	81	45
PROFIT GROWTH
PROFIT GROWTH	87	39	22	45
CAPITAL GROWTH
CAPITAL GROWTH	n/a	34	3	55
STOCK RETURNS
STOCK RETURNS	54	41	35	39
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	63	19	27	49

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 85 (better than 85% compared with alternatives) for 2024, the company Funai Soken Holdings Incorporated has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Funai Soken Holdings Incorporated 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 Funai Soken Holdings Incorporated. Leverage is at a rank of 91, meaning the company has a below-average debt-to-equity ratio. It has less debt than 91% of its competitors. Liquidity is also good at a rank of 96, meaning the company generates more profit to service its debt than 96% 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 42, 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 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 85 (better than 85% compared with alternatives), Funai Soken Holdings Incorporated 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 Funai Soken Holdings Incorporated. 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 Funai Soken Holdings Incorporated 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	74	82	82	91
REFINANCING
REFINANCING	32	52	42	42
LIQUIDITY
LIQUIDITY	100	89	92	96
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87	80	69	85

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Funai Soken Holdings Incorporated 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	51	93	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	6	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	78	22	^new
MARKET PULSE
MARKET PULSE	n/a	37	42	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	60	25	^new

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