Fact based stock research
Infocom (TSE:4348)

JP3153450006

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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.

Infocom stock research in summary

infocom.co.jp

ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), Infocom (Interactive Media & Services, Japan) shares have much better financial characteristics than comparable stocks. Shares of Infocom are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives). But they show above-average growth (Growth Rank of 99) and are safely financed (Safety Rank of 96, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on Infocom's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Infocom exhibits low value (Obermatt Value Rank of 39), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 99). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 96) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	39
Growth Rank	99
Safety Rank	96
Combined Rank	98

Country	Japan
Industry	Interactive Media & Services
Index
Size class	Medium

17-Oct-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: Infocom

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	92	95	92	39
GROWTH
GROWTH	36	7	73	99
SAFETY
SAFETY	97	96	98	96
SENTIMENT
SENTIMENT	n/a	35	82	^new
360° VIEW
360° VIEW	n/a	73	100	^new

Most recent update of the stock research: 17-Oct-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 Infocom is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	92	95	92	39
GROWTH
GROWTH	36	7	73	99
SAFETY
SAFETY	97	96	98	96
COMBINED
COMBINED	94	89	100	98

Last update of combined financial performance: 17-Oct-2024. Stock analysis on combined financial performance: The higher the rank of Infocom the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), Infocom shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Infocom. Price-to-Sales (P/S) is 51, which means that the stock price compared with what market professionals expect for future sales is lower than 51% of comparable companies, indicating a good value concerning to Infocom's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 44, meaning that dividends are expected to be lower than for 56% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 74% of alternatives (only 26% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 60% of comparable companies, 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 39, is a hold recommendation based on Infocom's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Infocom could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Infocom looks like an expensive investment today. 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 especially important 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)	78	78	72	51
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	81	100	95	40
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	52	81	62	26
DIVIDEND YIELD
DIVIDEND YIELD	85	86	83	44
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	92	95	92	39

Last update of Value Rank: 17-Oct-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Infocom; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 99 (better than 99% compared with alternatives) for 2024, Infocom shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Infocom. Sales Growth has a value of 63, which means that, currently, professionals expect the company to grow more than 63% of its competitors. The same is valid for Profit Growth with a value of 95 and for Capital Growth with 77. In addition, Stock Returns had an above-average rank value of 99, which means they have been higher than 99% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 99, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Infocom exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. 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. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	33	27	73	63
PROFIT GROWTH
PROFIT GROWTH	n/a	46	90	95
CAPITAL GROWTH
CAPITAL GROWTH	n/a	11	31	77
STOCK RETURNS
STOCK RETURNS	4	23	59	99
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	36	7	73	99

Last update of Growth Rank: 17-Oct-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Infocom.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2024, the company Infocom has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Infocom 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 Infocom. Leverage is at 98, meaning the company has a below-average debt-to-equity ratio. It has less debt than 98% of its competitors. Refinancing is at a rank of 50, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 50% of its competitors. Finally, Liquidity is also good at a rank of 98, which means that the company generates more profit to service its debt than 98% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), Infocom 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 Infocom 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	85	95	96	98
REFINANCING
REFINANCING	50	88	82	50
LIQUIDITY
LIQUIDITY	92	96	96	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	97	96	98	96

Last update of Safety Rank: 17-Oct-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Infocom 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	76	85	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	11	94	^new
MARKET PULSE
MARKET PULSE	n/a	37	24	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	35	82	^new

Last update of Sentiment Rank: 17-Oct-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Infocom.
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