Fact based stock research
Koito Manufacturing (TSE:7276)

JP3284600008

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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.

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Koito Manufacturing stock research in summary

koito.co.jp

ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Koito Manufacturing (Auto Parts & Equipment, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Koito Manufacturing are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives), are safely financed (Safety Rank of 94, which means low debt burdens), but show below-average growth (Growth Rank of 21). ...read more

RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Koito Manufacturing's financial characteristics. As the company Koito Manufacturing's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 21) while being safely financed (Obermatt Safety Rank of 94), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 67% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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	67
Growth Rank	21
Safety Rank	94
Combined Rank	70

Country	Japan
Industry	Auto Parts & Equipment
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: Koito Manufacturing

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	17	56	67
GROWTH
GROWTH	56	39	59	21
SAFETY
SAFETY	98	86	82	94
SENTIMENT
SENTIMENT	n/a	28	48	^new
360° VIEW
360° VIEW	n/a	21	70	^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 Koito Manufacturing is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	17	56	67
GROWTH
GROWTH	56	39	59	21
SAFETY
SAFETY	98	86	82	94
COMBINED
COMBINED	98	30	76	70

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), Koito Manufacturing shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Koito Manufacturing. Price-to-Sales is 74 which means that the stock price compared with what market professionals expect for future sales is lower than for 74% of comparable companies, indicating a good value for Koito Manufacturing's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 53% 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 81. Compared with other companies in the same industry, dividend yields of Koito Manufacturing are expected to be higher than for 54% of all competitors (a Dividend Yield rank of 54). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on Koito Manufacturing'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 Koito Manufacturing 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)	74	48	72	74
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	69	30	59	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	55	77	81
DIVIDEND YIELD
DIVIDEND YIELD	44	17	36	54
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	73	17	56	67

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), Koito Manufacturing 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 Koito Manufacturing. Only Capital Growth has a good rank of 65, which means that currently professionals expect the company to grow its invested capital more than 12% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 28 which means that currently professionals expect the company to grow less than 72% of its competitors. Profit Growth with a rank of 12 and Stock Returns with a rank of 33 are also low (below 67% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Koito Manufacturing is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	28	72	46	28
PROFIT GROWTH
PROFIT GROWTH	60	30	80	12
CAPITAL GROWTH
CAPITAL GROWTH	n/a	64	32	65
STOCK RETURNS
STOCK RETURNS	66	29	41	33
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	56	39	59	21

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2024, the company Koito Manufacturing has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Koito Manufacturing 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 Koito Manufacturing. 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 91, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 91% of its competitors. Finally, Liquidity is also good at a rank of 82, which means that the company generates more profit to service its debt than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Koito Manufacturing 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 Koito Manufacturing 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	98	84	80	90
REFINANCING
REFINANCING	46	65	81	91
LIQUIDITY
LIQUIDITY	100	82	68	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	86	82	94

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Koito Manufacturing 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	37	15	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	42	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	51	64	^new
MARKET PULSE
MARKET PULSE	n/a	28	50	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	28	48	^new

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