Fact based stock research
Hankyu Hanshin Holdings (TSE:9042)

JP3774200004

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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.

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Hankyu Hanshin Holdings stock research in summary

hankyu-hanshin.co.jp

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), Hankyu Hanshin Holdings (Railroads, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Hankyu Hanshin Holdings are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives) and show below-average growth (Growth Rank of 15) but are safely financed (Safety Rank of 63), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on Hankyu Hanshin Holdings's financial characteristics. As the company Hankyu Hanshin Holdings's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 45) and low growth (Obermatt Growth Rank of 15), 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 63) 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	45
Growth Rank	15
Safety Rank	63
Combined Rank	29

Country	Japan
Industry	Railroads
Index	Energy Efficient, Low Waste, Recycling
Size class	X-Large

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: Hankyu Hanshin Holdings

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	37	73	43	45
GROWTH
GROWTH	59	79	67	15
SAFETY
SAFETY	38	64	47	63
SENTIMENT
SENTIMENT	n/a	44	84	^new
360° VIEW
360° VIEW	n/a	89	86	^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 Hankyu Hanshin Holdings is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	37	73	43	45
GROWTH
GROWTH	59	79	67	15
SAFETY
SAFETY	38	64	47	63
COMBINED
COMBINED	33	94	57	29

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Hankyu Hanshin 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 Hankyu Hanshin Holdings. Price-to-Sales (P/S) is 58, which means that the stock price compared with what market professionals expect for future sales is lower than for 58% of comparable companies, indicating a good value concerning Hankyu Hanshin Holdings's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 67% of alternatives (33% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 25 are lower than average (dividends are expected to be lower than 75% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 48, 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 45, is a hold recommendation based on Hankyu Hanshin Holdings's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Hankyu Hanshin Holdings may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). 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)	58	56	50	58
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	44	48	48
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	70	91	62	67
DIVIDEND YIELD
DIVIDEND YIELD	56	41	25	25
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	37	73	43	45

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hankyu Hanshin 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 15 (better than 15% compared with alternatives), Hankyu Hanshin Holdings shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Hankyu Hanshin Holdings. Sales Growth has a rank of 21, which means that currently professionals expect the company to grow less than 79% of its competitors. The same is valid for Profit Growth, with a rank of 39, and Capital Growth with 39. In addition, Stock Returns have a below market rank of 19, which means that the stock returns have recently been below 81% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 15, is a sell 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	51	56	32	21
PROFIT GROWTH
PROFIT GROWTH	50	66	60	39
CAPITAL GROWTH
CAPITAL GROWTH	n/a	93	49	39
STOCK RETURNS
STOCK RETURNS	54	45	75	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	59	79	67	15

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 63 (better than 63% compared with alternatives), the company Hankyu Hanshin 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 Hankyu Hanshin 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 Hankyu Hanshin 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 66, meaning the company generates more profit to service its debt than 66% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 42, which means the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 63 (better than 63% compared with alternatives), Hankyu Hanshin 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 Hankyu Hanshin 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 Hankyu Hanshin 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	14	56	42	42
REFINANCING
REFINANCING	90	37	29	61
LIQUIDITY
LIQUIDITY	29	53	64	66
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	38	64	47	63

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hankyu Hanshin 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	62	67	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	95	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	19	35	^new
MARKET PULSE
MARKET PULSE	n/a	53	60	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	44	84	^new

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