Fact based stock research
Kato Sangyo (TSE:9869)

JP3213300001

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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.

Kato Sangyo stock research in summary

katosangyo.co.jp

ANALYSIS: With an Obermatt Combined Rank of 99 (better than 99% compared with investment alternatives), Kato Sangyo (Food Distributors, Japan) shares have much better financial characteristics than comparable stocks. Shares of Kato Sangyo are a good value (attractively priced) with a consolidated Value Rank of 91 (better than 91% of alternatives), show above-average growth (Growth Rank of 87), and are safely financed (Safety Rank of 82), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 99, is a strong buy recommendation based on Kato Sangyo's financial characteristics. As the company Kato Sangyo's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 91), above-average growth (Obermatt Growth Rank of 87), and indicate that the company is safely financed (Obermatt Safety Rank of 82), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Kato Sangyo. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	91
Growth Rank	87
Safety Rank	82
Combined Rank	99

Country	Japan
Industry	Food Distributors
Index
Size class	X-Large

19-Dec-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: Kato Sangyo

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	89	93	91
GROWTH
GROWTH	13	15	79	87
SAFETY
SAFETY	82	73	77	82
SENTIMENT
SENTIMENT	n/a	71	55	^new
360° VIEW
360° VIEW	n/a	63	97	^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 Kato Sangyo is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	89	93	91
GROWTH
GROWTH	13	15	79	87
SAFETY
SAFETY	82	73	77	82
COMBINED
COMBINED	86	73	97	99

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2024, Kato Sangyo shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Kato Sangyo. Price-to-Sales is 96 which means that the stock price compared with what market professionals expect for future sales is lower than for 96% of comparable companies, indicating a good value for Kato Sangyo's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 81% 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 80. Compared with other companies in the same industry, dividend yields of Kato Sangyo 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 91, is a buy recommendation based on Kato Sangyo'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 Kato Sangyo 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)	97	96	96	96
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	66	79	81
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	84	80	80	80
DIVIDEND YIELD
DIVIDEND YIELD	62	57	65	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	89	89	93	91

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 87 (better than 87% compared with alternatives) for 2024, Kato Sangyo 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 Kato Sangyo. Sales Growth has a value of 57, which means that, currently, professionals expect the company to grow more than 57% of its competitors. The same is valid for Profit Growth with a value of 67 and for Capital Growth with 71. In addition, Stock Returns had an above-average rank value of 53, which means they have been higher than 53% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 87, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Kato Sangyo 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	5	41	31	57
PROFIT GROWTH
PROFIT GROWTH	36	28	63	67
CAPITAL GROWTH
CAPITAL GROWTH	n/a	3	65	71
STOCK RETURNS
STOCK RETURNS	55	43	83	53
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	13	15	79	87

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2024, the company Kato Sangyo has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Kato Sangyo 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 Kato Sangyo. Leverage is at 76, meaning the company has a below-average debt-to-equity ratio. It has less debt than 76% 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 64, which means that the company generates more profit to service its debt than 64% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), Kato Sangyo 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 Kato Sangyo 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	94	70	76	76
REFINANCING
REFINANCING	1	79	79	79
LIQUIDITY
LIQUIDITY	100	65	66	64
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	82	73	77	82

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Kato Sangyo 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	n/a	n/a	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	84	75	^new
MARKET PULSE
MARKET PULSE	n/a	54	38	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	71	55	^new

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