Fact based stock research
GMO Internet (TSE:9449)

JP3152750000

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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.

(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 Internet stock research in summary

gmo.jp

ANALYSIS: With an Obermatt Combined Rank of 71 (better than 71% compared with investment alternatives), GMO Internet (Internet Services & Infrastructure, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of GMO Internet are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives), show above-average growth (Growth Rank of 55) but are riskily financed (Safety Rank of 46), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 71, is a buy recommendation based on GMO Internet's financial characteristics. As the company GMO Internet's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 79) and above-average growth (Obermatt Growth Rank of 55), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 46) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	79
Growth Rank	55
Safety Rank	46
Combined Rank	71

Country	Japan
Industry	Internet Services & Infrastructure
Index
Size class	Large

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: GMO Internet

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	81	84	79
GROWTH
GROWTH	58	21	35	55
SAFETY
SAFETY	79	56	44	46
SENTIMENT
SENTIMENT	n/a	1	8	^new
360° VIEW
360° VIEW	n/a	25	35	^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 Internet is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	81	84	79
GROWTH
GROWTH	58	21	35	55
SAFETY
SAFETY	79	56	44	46
COMBINED
COMBINED	79	52	60	71

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2024, GMO Internet shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for GMO Internet. Price-to-Sales is 85 which means that the stock price compared with what market professionals expect for future sales is lower than for 85% of comparable companies, indicating a good value for GMO Internet's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 82% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 50. Compared with other companies in the same industry, dividend yields of GMO Internet are expected to be higher than for 70% of all competitors (a Dividend Yield rank of 70). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on GMO Internet's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in GMO Internet based on its detailed value metrics. 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)	79	90	87	85
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	81	87	82
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	31	58	50	50
DIVIDEND YIELD
DIVIDEND YIELD	85	70	79	70
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	88	81	84	79

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), GMO Internet 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, with three out of four indicators below average for GMO Internet. Sales Growth has a below market rank of 49, which means that, currently, professionals expect the company to grow less than 51% of its competitors. The same is valid for Capital Growth, with a rank of 47, and Profit Growth, with a rank of 40. Currently, professionals expect the company to grow its profits less than 60% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 57, which means that the stock returns have recently been above 57% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for GMO Internet, 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. 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	29	29	29	49
PROFIT GROWTH
PROFIT GROWTH	48	70	54	40
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	45	47
STOCK RETURNS
STOCK RETURNS	50	39	45	57
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	58	21	35	55

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 Internet.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 46 (better than 46% compared with alternatives), the company GMO Internet has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of GMO Internet is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, 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 Internet. Refinancing is at 98, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 98% of its competitors. Liquidity is also good at 50, meaning the company generates more profit to service its debt than 50% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 1, which means the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 46 (worse than 54% compared with alternatives), GMO Internet has a financing structure that is riskier 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 Internet 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 Internet 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	31	1	1	1
REFINANCING
REFINANCING	90	98	100	98
LIQUIDITY
LIQUIDITY	97	55	53	50
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	79	56	44	46

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of GMO Internet 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	34	17	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	26	17	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	29	33	^new
MARKET PULSE
MARKET PULSE	n/a	9	17	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	1	8	^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 Internet.
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