September 12, 2024
Top 10 Stock Meiji Hold Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Meiji Hold

360 METRICS	September 12, 2024
VALUE
VALUE	43
GROWTH
GROWTH	33
SAFETY
SAFETY	87
SENTIMENT
SENTIMENT	36
360° VIEW
360° VIEW	48

ANALYSIS: With an Obermatt 360° View of 48 (better than 48% compared with alternatives), overall professional sentiment and financial characteristics for the stock Meiji are below the industry average. The 360° View is based on consolidating four consolidated indicators, with three out of four metrics below average for Meiji. The only rank that is above average is the consolidated Safety Rank at 87, which means that the company has a financing structure that is safer than those of 87% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the Value, Growth and Sentiment Ranks are all below average. The consolidated Value Rank has a less desirable rank of 43, which means that the share price of Meiji is on the high side compared with typical size in indicators such as revenues, profits, and invested capital. The consolidated Growth Rank also has a low rank of 33, which implies that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. Finally, the consolidated Sentiment Rank is also low at a rank of 36, which means that professional investors are more pessimistic about the stock than for 64% of alternative investment opportunities. While Safety is strong, it’s not the most critical indicator, so we suggest proceeding with caution if you are considering this stock. ...read more

RECOMMENDATION: With a consolidated 360° View of 48, Meiji is worse than 52% of all alternative stock investment opportunities based on the Obermatt Method. As only the financing structure, namely the Safety Rank, is on the safer side and all other consolidated Obermatt Ranks are below-average, this is a riskier stock investment proposition. This is especially the case, since professional investor sentiment, the consolidated Obermatt Sentiment Rank, is also low at 36. The negative market view on Meiji may be the high stock price (low value) or the low level of growth. This is a problem. As the Safety Rank is the least significant of the four consolidated Obermatt Ranks, we cannot identify enough positive facts that are visible today to make a case for this stock investment. The company may have a strong future which would justify the high stock price, but this is not visible from investor behavior today. As market sentiment is critical, you should be careful with paying more than market-average for this stock, and conduct further research into the company's future growth potential. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for Meiji only reserved

SENTIMENT METRICS	September 12, 2024
ANALYST OPINION
ANALYST OPINION	5
OPINIONS CHANGE
OPINIONS CHANGE	75
PRO HOLDINGS
PRO HOLDINGS	53
MARKET PULSE
MARKET PULSE	46
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	36

ANALYSIS: With an Obermatt Sentiment Rank of 36 (better than 36% compared with alternatives), overall professional sentiment and engagement for the stock Meiji is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Meiji. Analyst Opinions are at a rank of 5 (worse than 95% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 75, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Meiji. More encouragingly, the Professional Investors rank is 53, which means that professional investors hold more stock in this company than in 53% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 46, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 54% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 36 (less encouraging than 64% compared with investment alternatives), Meiji has a reputation among professional investors that is below that of its competitors. The sentiment signals are mixed for Meiji. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: Meiji Stock Price Value below-average critical

VALUE METRICS	September 12, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	40
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	33
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	45
DIVIDEND YIELD
DIVIDEND YIELD	60
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	43

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), Meiji shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Meiji. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 60% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 40 which means that the stock price compared with what market professionals expect for future profits is higher than 60% of comparable companies, indicating a low value concerning Meiji's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 33 which means that the stock price compared with what market professionals expect for future profit levels is higher than 67% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 45 is also low. Compared with invested capital, the stock price is higher than for 55% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on Meiji's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Meiji? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Meiji only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: Meiji Growth Momentum low

GROWTH METRICS	September 12, 2024
REVENUE GROWTH
REVENUE GROWTH	18
PROFIT GROWTH
PROFIT GROWTH	28
CAPITAL GROWTH
CAPITAL GROWTH	90
STOCK RETURNS
STOCK RETURNS	43
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	33

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), Meiji 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 three out of four indicators below average for Meiji. Only Capital Growth has a good rank of 90, which means that currently professionals expect the company to grow its invested capital more than 28% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 18 which means that currently professionals expect the company to grow less than 82% of its competitors. Profit Growth with a rank of 28 and Stock Returns with a rank of 43 are also low (below 57% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold 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 Meiji 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. ...read more

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Safety Strategy: Meiji Debt Financing Safety very solid

SAFETY METRICS	September 12, 2024
LEVERAGE
LEVERAGE	86
REFINANCING
REFINANCING	43
LIQUIDITY
LIQUIDITY	95
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87

ANALYSIS: With an Obermatt Safety Rank of 87 (better than 87% compared with alternatives) for 2024, the company Meiji has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Meiji 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 Meiji. Leverage is at a rank of 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Liquidity is also good at a rank of 95, meaning the company generates more profit to service its debt than 95% 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 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. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 87 (better than 87% compared with alternatives), Meiji 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 Meiji. 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. ...read more

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Combined financial peformance: Meiji Above-Average Financial Performance

COMBINED PERFORMANCE	September 12, 2024
VALUE
VALUE	43
GROWTH
GROWTH	33
SAFETY
SAFETY	95
COMBINED
COMBINED	55

ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Meiji (Packaged Foods & Meats, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Meiji are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives) and show below-average growth (Growth Rank of 33) but are safely financed (Safety Rank of 87), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Meiji's financial characteristics. As the company Meiji's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 43) and low growth (Obermatt Growth Rank of 33), 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 87) 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. ...read more

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