Fact based stock research
HORIBA (TSE:6856)

JP3853000002

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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.

HORIBA stock research in summary

horiba.com

ANALYSIS: With an Obermatt Combined Rank of 80 (better than 80% compared with investment alternatives), HORIBA (Electronic Equipment, Japan) shares have much better financial characteristics than comparable stocks. Shares of HORIBA are a good value (attractively priced) with a consolidated Value Rank of 87 (better than 87% of alternatives), are safely financed (Safety Rank of 82, which means low debt burdens), but show below-average growth (Growth Rank of 15). ...read more

RECOMMENDATION: A Combined Rank of 80, is a strong buy recommendation based on HORIBA's financial characteristics. As the company HORIBA's key financial metrics exhibit good value (Obermatt Value Rank of 87) but low growth (Obermatt Growth Rank of 15) while being safely financed (Obermatt Safety Rank of 82), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 87% 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	87
Growth Rank	15
Safety Rank	82
Combined Rank	80

Country	Japan
Industry	Electronic Equipment
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: HORIBA

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	65	65	87
GROWTH
GROWTH	47	31	77	15
SAFETY
SAFETY	97	47	57	82
SENTIMENT
SENTIMENT	n/a	19	98	^new
360° VIEW
360° VIEW	n/a	23	93	^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 HORIBA is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	65	65	87
GROWTH
GROWTH	47	31	77	15
SAFETY
SAFETY	97	47	57	82
COMBINED
COMBINED	94	39	86	80

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 87 (better than 87% compared with alternatives) for 2024, HORIBA shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for HORIBA. Price-to-Sales is 59 which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value for HORIBA's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 97% 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 68. Compared with other companies in the same industry, dividend yields of HORIBA are expected to be higher than for 65% of all competitors (a Dividend Yield rank of 65). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 87, is a buy recommendation based on HORIBA'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 HORIBA 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)	86	61	46	59
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	88	64	81	97
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	84	75	62	68
DIVIDEND YIELD
DIVIDEND YIELD	80	49	52	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91	65	65	87

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of HORIBA; 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), HORIBA 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 three out of four indicators below average for HORIBA. Sales Growth has a below market rank of 30, which means that, currently, professionals expect the company to grow less than 70% of its competitors. The same is valid for Capital Growth, with a rank of 29, and Profit Growth, with a rank of 16. Currently, professionals expect the company to grow its profits less than 84% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 67, which means that the stock returns have recently been above 67% 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. That picture may be the result for a company that has reached the bottom. All went south for HORIBA, 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	21	24	11	30
PROFIT GROWTH
PROFIT GROWTH	78	57	66	16
CAPITAL GROWTH
CAPITAL GROWTH	n/a	39	81	29
STOCK RETURNS
STOCK RETURNS	62	37	91	67
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	47	31	77	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 HORIBA.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2024, the company HORIBA has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of HORIBA 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 HORIBA. Leverage is at 50, meaning the company has a below-average debt-to-equity ratio. It has less debt than 50% of its competitors. Refinancing is at a rank of 93, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 93% of its competitors. Finally, Liquidity is also good at a rank of 74, which means that the company generates more profit to service its debt than 74% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), HORIBA 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 HORIBA 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	84	30	40	50
REFINANCING
REFINANCING	78	83	77	93
LIQUIDITY
LIQUIDITY	100	51	65	74
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	97	47	57	82

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of HORIBA 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	12	73	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	92	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	32	84	^new
MARKET PULSE
MARKET PULSE	n/a	37	48	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	19	98	^new

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