Fact based stock research
GMO GlobalSign Holdings (TSE:3788)

JP3386040004

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.

GMO GlobalSign Holdings stock research in summary

ir.gmocloud.com

ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), GMO GlobalSign Holdings (Internet Services & Infrastructure, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of GMO GlobalSign Holdings are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 59) and are safely financed (Safety Rank of 55, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on GMO GlobalSign Holdings's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company GMO GlobalSign Holdings exhibits low value (Obermatt Value Rank of 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 59). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 55) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	49
Growth Rank	59
Safety Rank	55
Combined Rank	59

Country	Japan
Industry	Internet Services & Infrastructure
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

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.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: GMO GlobalSign Holdings

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	47	52	49
GROWTH
GROWTH	3	5	21	59
SAFETY
SAFETY	69	74	71	55
SENTIMENT
SENTIMENT	n/a	67	58	^new
360° VIEW
360° VIEW	n/a	45	51	^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 GMO GlobalSign Holdings is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	47	52	49
GROWTH
GROWTH	3	5	21	59
SAFETY
SAFETY	69	74	71	55
COMBINED
COMBINED	23	28	42	59

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), GMO GlobalSign Holdings shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for GMO GlobalSign Holdings. Price-to-Sales (P/S) is 71, which means that the stock price compared with what market professionals expect for future sales is lower than for 71% of comparable companies, indicating a good value concerning GMO GlobalSign Holdings's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 59, which means that dividends are expected to be higher than for 59% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 54% of alternatives (only 46% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 74% 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 49, is a hold recommendation based on GMO GlobalSign Holdings's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. 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)	43	56	66	71
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	46	28	43	26
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	18	40	47	46
DIVIDEND YIELD
DIVIDEND YIELD	78	56	62	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	46	47	52	49

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), GMO GlobalSign Holdings shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for GMO GlobalSign Holdings. Profit Growth, with a rank of 61 (better than 61% of its competitors), and Capital Growth, with a rank of 65, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 39, which means that, currently, professionals expect the company to grow less than 61% of its competitors, and Stock Returns are at a rank of 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. 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 mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	17	37	23	39
PROFIT GROWTH
PROFIT GROWTH	n/a	10	29	61
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	65	65
STOCK RETURNS
STOCK RETURNS	2	13	15	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	3	5	21	59

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company GMO GlobalSign Holdings has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of GMO GlobalSign Holdings 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 GMO GlobalSign Holdings. Refinancing is at 61, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 61% of its competitors. Liquidity is also good at 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 37, which means the company has an above-average debt-to-equity ratio. It has more debt than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), GMO GlobalSign Holdings has a financing structure that is 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 GMO GlobalSign Holdings 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. In the long-term, investors may have a debt challenge with GMO GlobalSign Holdings 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	67	65	42	37
REFINANCING
REFINANCING	29	46	60	61
LIQUIDITY
LIQUIDITY	91	81	80	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	69	74	71	55

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of GMO GlobalSign Holdings 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	76	85	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	77	69	^new
MARKET PULSE
MARKET PULSE	n/a	13	15	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	67	58	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for GMO GlobalSign Holdings.
Upgrade to a Premium Account to access the latest ranks.