Fact based stock research
House Foods Group (TSE:2810)

JP3765400001

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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.

House Foods Group stock research in summary

housefoods-group.com

ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), House Foods Group (Packaged Foods & Meats, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of House Foods Group are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives) and show below-average growth (Growth Rank of 7) but are safely financed (Safety Rank of 99), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on House Foods Group's financial characteristics. As the company House Foods Group's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 41) and low growth (Obermatt Growth Rank of 7), 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 99) 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	41
Growth Rank	7
Safety Rank	99
Combined Rank	45

Country	Japan
Industry	Packaged Foods & Meats
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: House Foods Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	35	40	41
GROWTH
GROWTH	17	23	47	7
SAFETY
SAFETY	100	99	95	99
SENTIMENT
SENTIMENT	n/a	41	52	^new
360° VIEW
360° VIEW	n/a	43	67	^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 House Foods Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	35	40	41
GROWTH
GROWTH	17	23	47	7
SAFETY
SAFETY	100	99	95	99
COMBINED
COMBINED	78	45	80	45

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), House Foods Group shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for House Foods Group. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 69, which means that the stock price is lower compared with invested capital than for 69% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 41 which means the stock price compared with what market professionals expect for future profits is higher than 59% of comparable companies, indicating a low value concerning House Foods Group's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 69 and for the dividend yields rank which is lower than for 77% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on House Foods Group's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for House Foods Group, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. 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)	63	35	34	41
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	68	27	26	28
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	88	72	62	69
DIVIDEND YIELD
DIVIDEND YIELD	52	35	34	23
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	82	35	40	41

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 7 (better than 7% compared with alternatives), House Foods Group 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 House Foods Group. While Sales Growth ranks at 59, professionals currently expect the company to grow more than 59% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 12, which means that, currently, professionals expect the company to grow its profits less than 88% of its competitors, and Capital Growth has a low rank of 25. Historic stock returns were also below average with a current Stock Returns 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 7, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. 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 isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	10	66	65	59
PROFIT GROWTH
PROFIT GROWTH	47	78	69	12
CAPITAL GROWTH
CAPITAL GROWTH	n/a	11	15	25
STOCK RETURNS
STOCK RETURNS	32	7	57	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	17	23	47	7

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 99 (better than 99% compared with alternatives) for 2024, the company House Foods Group has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of House Foods Group 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 House Foods Group. Leverage is at 90, meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors. Refinancing is at a rank of 79, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 79% of its competitors. Finally, Liquidity is also good at a rank of 89, which means that the company generates more profit to service its debt than 89% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 99 (better than 99% compared with alternatives), House Foods Group 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 House Foods Group 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	94	88	90
REFINANCING
REFINANCING	56	75	71	79
LIQUIDITY
LIQUIDITY	100	99	75	89
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	99	95	99

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of House Foods Group 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	47	38	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	18	79	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	59	44	^new
MARKET PULSE
MARKET PULSE	n/a	60	65	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	41	52	^new

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