Fact based stock research
Kurita Water Industries (TSE:6370)

JP3270000007

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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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Kurita Water Industries stock research in summary

kurita.co.jp

ANALYSIS: With an Obermatt Combined Rank of 22 (worse than 78% compared with investment alternatives), Kurita Water Industries (Industrial Machinery, Japan) shares have lower financial characteristics compared with similar stocks. Shares of Kurita Water Industries are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives), show below-average growth (Growth Rank of 38), and are riskily financed (Safety Rank of 41), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 22, is a sell recommendation based on Kurita Water Industries's financial characteristics. As the company Kurita Water Industries's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 38), low growth (Obermatt Growth Rank of 38), and risky financing practices (Obermatt Safety Rank of 41), 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. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to 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	38
Growth Rank	38
Safety Rank	41
Combined Rank	22

Country	Japan
Industry	Industrial Machinery
Index
Size class	Large

14-Nov-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

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

Research History: Kurita Water Industries

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	24	30	38
GROWTH
GROWTH	42	44	22	38
SAFETY
SAFETY	58	63	43	41
SENTIMENT
SENTIMENT	n/a	73	94	^new
360° VIEW
360° VIEW	n/a	50	51	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Kurita Water Industries is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	24	30	38
GROWTH
GROWTH	42	44	22	38
SAFETY
SAFETY	58	63	43	41
COMBINED
COMBINED	68	33	14	22

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Kurita Water Industries the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 38 (worse than 62% compared with alternatives), Kurita Water Industries shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Kurita Water Industries. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 50, which means that the stock price is lower compared with invested capital than for 50% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 37 which means the stock price compared with what market professionals expect for future profits is higher than 63% of comparable companies, indicating a low value concerning Kurita Water Industries's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 50 and for the dividend yields rank which is lower than for 73% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 38, is a hold recommendation based on Kurita Water Industries's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Kurita Water Industries, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. 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)	55	30	39	37
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	40	28	33	41
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	58	42	40	50
DIVIDEND YIELD
DIVIDEND YIELD	74	18	29	27
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69	24	30	38

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Kurita Water Industries; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 38 (better than 38% compared with alternatives), Kurita Water Industries 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 Kurita Water Industries. Profit Growth has a rank of 63, which means that currently professionals expect the company to grow its profits more than 63% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 74 (above 74% of alternative investments). But Sales Growth has a below the median rank of 24, which means that, currently, professionals expect the company to grow less than 76% of its competitors, and Capital Growth also has a lower rank of 18. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 38, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Kurita Water Industries. 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	20	32	8	24
PROFIT GROWTH
PROFIT GROWTH	11	9	81	63
CAPITAL GROWTH
CAPITAL GROWTH	n/a	80	37	18
STOCK RETURNS
STOCK RETURNS	68	74	20	74
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	42	44	22	38

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Kurita Water Industries.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 41 (better than 41% compared with alternatives), the company Kurita Water Industries has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Kurita Water Industries is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Kurita Water Industries. Liquidity is at 66, meaning the company generates more profit to service its debt than 66% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 30, 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 70% of its competitors. Leverage is also high at a rank of 43, which means that the company has an above-average debt-to-equity ratio. It has more debt than 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 41 (worse than 59% compared with alternatives), Kurita Water Industries has a financing structure that is riskier 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	42	63	43	43
REFINANCING
REFINANCING	32	20	22	30
LIQUIDITY
LIQUIDITY	79	82	70	66
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	58	63	43	41

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Kurita Water Industries 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	46	48	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	23	94	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	84	96	^new
MARKET PULSE
MARKET PULSE	n/a	64	73	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	73	94	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Kurita Water Industries.
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