Fact based stock research
Hisamitsu Pharmaceutical (TSE:4530)

JP3784600003

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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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Hisamitsu Pharmaceutical stock research in summary

hisamitsu.co.jp

ANALYSIS: With an Obermatt Combined Rank of 77 (better than 77% compared with investment alternatives), Hisamitsu Pharmaceutical (Pharmaceuticals, Japan) shares have much better financial characteristics than comparable stocks. Shares of Hisamitsu Pharmaceutical are a good value (attractively priced) with a consolidated Value Rank of 52 (better than 52% of alternatives), are safely financed (Safety Rank of 94, which means low debt burdens), but show below-average growth (Growth Rank of 38). ...read more

RECOMMENDATION: A Combined Rank of 77, is a strong buy recommendation based on Hisamitsu Pharmaceutical's financial characteristics. As the company Hisamitsu Pharmaceutical's key financial metrics exhibit good value (Obermatt Value Rank of 52) but low growth (Obermatt Growth Rank of 38) while being safely financed (Obermatt Safety Rank of 94), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 52% 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	52
Growth Rank	38
Safety Rank	94
Combined Rank	77

Country	Japan
Industry	Pharmaceuticals
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

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

Research History: Hisamitsu Pharmaceutical

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	59	56	52
GROWTH
GROWTH	2	33	65	38
SAFETY
SAFETY	98	100	98	94
SENTIMENT
SENTIMENT	n/a	90	34	^new
360° VIEW
360° VIEW	n/a	93	77	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-May-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Hisamitsu Pharmaceutical is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	59	56	52
GROWTH
GROWTH	2	33	65	38
SAFETY
SAFETY	98	100	98	94
COMBINED
COMBINED	58	72	96	77

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 52 (better than 52% compared with alternatives), Hisamitsu Pharmaceutical shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Hisamitsu Pharmaceutical. Expected dividend yields are higher than for 59% of comparable companies (a Dividend Yield rank of 59), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 72, which means that the stock price is lower compared with invested capital than for 72% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 39 which means that the stock price compared with what market professionals expect for future profits is higher than for 61% of comparable companies, indicating a low value concerning Hisamitsu Pharmaceutical's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Hisamitsu Pharmaceutical with a rank of 49. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 51% of comparable companies, indicating a low value concerning Hisamitsu Pharmaceutical's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 52, is a buy recommendation based on Hisamitsu Pharmaceutical's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Hisamitsu Pharmaceutical may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. 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)	61	56	45	39
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	50	58	47	49
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	77	72	67	72
DIVIDEND YIELD
DIVIDEND YIELD	71	60	55	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69	59	56	52

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 38 (better than 38% compared with alternatives), Hisamitsu Pharmaceutical 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, where half of the indicators are below and half above average for Hisamitsu Pharmaceutical. Profit Growth, with a rank of 56 (better than 56% of its competitors), and Capital Growth, with a rank of 64, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 23, which means that, currently, professionals expect the company to grow less than 77% of its competitors, and Stock Returns are at a rank of 32. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 38, is a hold 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	7	64	41	23
PROFIT GROWTH
PROFIT GROWTH	50	57	63	56
CAPITAL GROWTH
CAPITAL GROWTH	n/a	42	49	64
STOCK RETURNS
STOCK RETURNS	10	11	65	32
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	2	33	65	38

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2024, the company Hisamitsu Pharmaceutical has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical. Leverage is at 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors. Refinancing is at a rank of 78, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 78% 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 94 (better than 94% compared with alternatives), Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical 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	96	88	91	89
REFINANCING
REFINANCING	52	85	81	78
LIQUIDITY
LIQUIDITY	98	94	92	86
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	100	98	94

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hisamitsu Pharmaceutical 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	24	20	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	99	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	86	54	^new
MARKET PULSE
MARKET PULSE	n/a	65	65	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	90	34	^new

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