Fact based stock research
Keio (TSE:9008)
JP3277800003
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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.
Keio stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 61 (better than 61% compared with investment alternatives), Keio (Railroads, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Keio are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives). But they show above-average growth (Growth Rank of 53) and are safely financed (Safety Rank of 73, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 61, is a buy recommendation based on Keio's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Keio exhibits low value (Obermatt Value Rank of 33), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 53). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 73) 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
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360° Viewnew| Country | Japan |
| Industry | Railroads |
| Index | Nikkei 225 |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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: Keio
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 15 |
|
7 |
|
19 |
|
33 |
|
| GROWTH | ||||||||
| GROWTH | 21 |
|
27 |
|
63 |
|
53 |
|
| SAFETY | ||||||||
| SAFETY | 18 |
|
39 |
|
59 |
|
73 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
4 |
|
8 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
7 |
|
22 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 61 (better than 61% compared with investment alternatives), Keio (Railroads, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Keio are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives). But they show above-average growth (Growth Rank of 53) and are safely financed (Safety Rank of 73, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 61, is a buy recommendation based on Keio's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Keio exhibits low value (Obermatt Value Rank of 33), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 53). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 73) 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
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 15 |
|
7 |
|
19 |
|
33 |
|
| GROWTH | ||||||||
| GROWTH | 21 |
|
27 |
|
63 |
|
53 |
|
| SAFETY | ||||||||
| SAFETY | 18 |
|
39 |
|
59 |
|
73 |
|
| COMBINED | ||||||||
| COMBINED | 16 |
|
8 |
|
45 |
|
61 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), Keio shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Keio. Price-to-Sales is 37 which means that the stock price compared with what market professionals expect for future profits is higher than 63% of comparable companies, indicating a low value concerning Keio's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 44, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Keio. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 41 and Dividend Yield, which is lower than 69% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 33, is a hold recommendation based on Keio's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Keio? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Keio? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Keio may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. 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) | 37 |
|
27 |
|
28 |
|
37 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 1 |
|
12 |
|
28 |
|
41 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 32 |
|
41 |
|
44 |
|
44 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 40 |
|
14 |
|
23 |
|
31 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 15 |
|
7 |
|
19 |
|
33 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Keio 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, where half of the indicators are below and half above average for Keio. Profit Growth, with a rank of 73 (better than 73% of its competitors), and Capital Growth, with a rank of 59, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 31, which means that, currently, professionals expect the company to grow less than 69% of its competitors, and Stock Returns are at a rank of 35. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth 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 | 23 |
|
54 |
|
83 |
|
31 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 32 |
|
52 |
|
85 |
|
73 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
41 |
|
45 |
|
59 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 28 |
|
3 |
|
11 |
|
35 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 21 |
|
27 |
|
63 |
|
53 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company Keio has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Keio 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 just one indicator above average for Keio. Liquidity is at 90, meaning the company generates more profit to service its debt than 90% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 43, 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 57% of its competitors. Leverage is also high at a rank of 44, which means that the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), Keio has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 34 |
|
62 |
|
46 |
|
44 |
|
| REFINANCING | ||||||||
| REFINANCING | 30 |
|
29 |
|
39 |
|
43 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 26 |
|
18 |
|
56 |
|
90 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 18 |
|
39 |
|
59 |
|
73 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
9 |
|
9 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
11 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
46 |
|
61 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
9 |
|
29 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
4 |
|
8 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Keio from November 14, 2024.
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