Fact based stock research
JAPAN MATERIAL (TSE:6055)

JP3389680004

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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.

JAPAN MATERIAL stock research in summary

j-materials.jp

ANALYSIS: With an Obermatt Combined Rank of 77 (better than 77% compared with investment alternatives), JAPAN MATERIAL (Semiconductor Equipment, Japan) shares have much better financial characteristics than comparable stocks. Shares of JAPAN MATERIAL are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 91, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 77, is a strong buy recommendation based on JAPAN MATERIAL's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company JAPAN MATERIAL exhibits low value (Obermatt Value Rank of 29), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 91) 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	29
Growth Rank	65
Safety Rank	91
Combined Rank	77

Country	Japan
Industry	Semiconductor Equipment
Index
Size class	Medium

19-Dec-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.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: JAPAN MATERIAL

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	15	17	29
GROWTH
GROWTH	17	13	43	65
SAFETY
SAFETY	98	80	79	91
SENTIMENT
SENTIMENT	n/a	69	77	^new
360° VIEW
360° VIEW	n/a	37	61	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better JAPAN MATERIAL is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	15	17	29
GROWTH
GROWTH	17	13	43	65
SAFETY
SAFETY	98	80	79	91
COMBINED
COMBINED	79	20	39	77

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of JAPAN MATERIAL the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), JAPAN MATERIAL shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for JAPAN MATERIAL. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 50, which means that the stock price compared with what market professionals expect for future profits is lower than for 50% of comparable companies, indicating a good value concerning JAPAN MATERIAL's profit levels. But Price-to-Sales is 33 which means that the stock price compared with what market professionals expect for future profits is higher than for 67% of comparable companies, indicating a low value concerning JAPAN MATERIAL's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 33 and for dividend yield, which is lower than for 65% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on JAPAN MATERIAL's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then JAPAN MATERIAL is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. 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)	57	18	25	33
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	83	21	39	50
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	46	27	19	33
DIVIDEND YIELD
DIVIDEND YIELD	82	22	18	35
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	82	15	17	29

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of JAPAN MATERIAL; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), JAPAN MATERIAL shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for JAPAN MATERIAL. Sales Growth has a rank of 85 which means that currently, professionals expect the company to grow more than 85% of its competitors. Capital Growth is also above 44% of competitors with a rank of 77. But Profit Growth only has a rank of 44, which means that currently professionals expect the company to grow its profits less than 56% of its competitors. And Stock Returns have also been below average with a rank of only 25. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise 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	4	41	65	85
PROFIT GROWTH
PROFIT GROWTH	n/a	28	54	44
CAPITAL GROWTH
CAPITAL GROWTH	n/a	23	17	77
STOCK RETURNS
STOCK RETURNS	61	41	31	25
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	17	13	43	65

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of JAPAN MATERIAL.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 91 (better than 91% compared with alternatives) for 2024, the company JAPAN MATERIAL has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of JAPAN MATERIAL 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 JAPAN MATERIAL. Leverage is at a rank of 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Liquidity is also good at a rank of 95, meaning the company generates more profit to service its debt than 95% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 41, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 59% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 91 (better than 91% compared with alternatives), JAPAN MATERIAL has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for JAPAN MATERIAL. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with JAPAN MATERIAL 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	72	84	84	86
REFINANCING
REFINANCING	68	35	19	41
LIQUIDITY
LIQUIDITY	98	94	95	95
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	80	79	91

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of JAPAN MATERIAL 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	85	52	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	98	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	96	77	^new
MARKET PULSE
MARKET PULSE	n/a	3	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	69	77	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for JAPAN MATERIAL.
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