Fact based stock research
Kotobuki Spirits (TSE:2222)

JP3299600001

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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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Kotobuki Spirits stock research in summary

kotobukispirits.co.jp

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), Kotobuki Spirits (Packaged Foods & Meats, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Kotobuki Spirits are low in value (priced high) with a consolidated Value Rank of 1 (worse than 99% of alternatives) and show below-average growth (Growth Rank of 45) but are safely financed (Safety Rank of 83), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on Kotobuki Spirits's financial characteristics. As the company Kotobuki Spirits's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 1) and low growth (Obermatt Growth Rank of 45), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 83) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. 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	1
Growth Rank	45
Safety Rank	83
Combined Rank	29

Country	Japan
Industry	Packaged Foods & Meats
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

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

Research History: Kotobuki Spirits

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	8	1	4	1
GROWTH
GROWTH	48	75	100	45
SAFETY
SAFETY	11	17	77	83
SENTIMENT
SENTIMENT	n/a	47	94	^new
360° VIEW
360° VIEW	n/a	13	94	^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 Kotobuki Spirits is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	8	1	4	1
GROWTH
GROWTH	48	75	100	45
SAFETY
SAFETY	11	17	77	83
COMBINED
COMBINED	1	9	78	29

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 1 (worse than 99% compared with alternatives), Kotobuki Spirits shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Kotobuki Spirits. Price-to-Sales is 1 which means that the stock price compared with what market professionals expect for future profits is higher than 99% of comparable companies, indicating a low value concerning Kotobuki Spirits's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 1, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Kotobuki Spirits. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 15 and Dividend Yield, which is lower than 84% 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 1, is a sell recommendation based on Kotobuki Spirits's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Kotobuki Spirits? 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 Kotobuki Spirits? 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. Kotobuki Spirits 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)	11	3	1	1
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	14	3	11	15
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	1	1	1
DIVIDEND YIELD
DIVIDEND YIELD	29	8	21	16
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	8	1	4	1

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Kotobuki Spirits shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Kotobuki Spirits. Sales Growth has a rank of 98, which means that, currently, professionals expect the company to grow more than 98% of its competitors. Profit Growth with a rank of 52 is also above average. But Capital Growth has only a rank of 27, and Stock Returns with 27 are also below-average. Stock returns for Kotobuki Spirits have recently been below 73% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Kotobuki Spirits. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt 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	100	98	98
PROFIT GROWTH
PROFIT GROWTH	n/a	96	77	52
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	95	27
STOCK RETURNS
STOCK RETURNS	39	43	97	27
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	48	75	100	45

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 83 (better than 83% compared with alternatives) for 2024, the company Kotobuki Spirits has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Kotobuki Spirits 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 Kotobuki Spirits. Leverage is at a rank of 96, meaning the company has a below-average debt-to-equity ratio. It has less debt than 96% of its competitors. Liquidity is also good at a rank of 99, meaning the company generates more profit to service its debt than 99% 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 17, 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 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 83 (better than 83% compared with alternatives), Kotobuki Spirits 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 Kotobuki Spirits. 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 Kotobuki Spirits 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	76	84	94	96
REFINANCING
REFINANCING	31	13	13	17
LIQUIDITY
LIQUIDITY	1	1	100	99
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	11	17	77	83

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Kotobuki Spirits 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	87	87	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	99	89	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	9	94	^new
MARKET PULSE
MARKET PULSE	n/a	1	46	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	47	94	^new

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