Fact based stock research
Meitec (TSE:9744)

JP3919200000

How to read the free ranks

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.

Meitec stock research in summary

meitec.co.jp

ANALYSIS: With an Obermatt Combined Rank of 51 (better than 51% compared with investment alternatives), Meitec (HR- & Employment Services, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Meitec are a good value (attractively priced) with a consolidated Value Rank of 72 (better than 72% of alternatives), are safely financed (Safety Rank of 59, which means low debt burdens), but show below-average growth (Growth Rank of 11). ...read more

RECOMMENDATION: A Combined Rank of 51, is a buy recommendation based on Meitec's financial characteristics. As the company Meitec's key financial metrics exhibit good value (Obermatt Value Rank of 72) but low growth (Obermatt Growth Rank of 11) while being safely financed (Obermatt Safety Rank of 59), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 72% 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	72
Growth Rank	11
Safety Rank	59
Combined Rank	51

Country	Japan
Industry	HR- & Employment Services
Index	SDG 16, SDG 4, SDG 5, SDG 8, SDG 9
Size class	Large

This stock has achievements: Top 10 Stock.

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: Meitec

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	96	75	65	72
GROWTH
GROWTH	26	55	17	11
SAFETY
SAFETY	96	87	87	59
SENTIMENT
SENTIMENT	n/a	28	76	^new
360° VIEW
360° VIEW	n/a	57	54	^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 Meitec is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	96	75	65	72
GROWTH
GROWTH	26	55	17	11
SAFETY
SAFETY	96	87	87	59
COMBINED
COMBINED	96	96	96	51

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of Meitec the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 72 (better than 72% compared with alternatives), Meitec shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Meitec. Price-to-Sales (P/S) is 59, which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value concerning Meitec's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 67% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 100 (dividends are expected to be higher than 100% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 69% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Meitec to 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 72, is a buy recommendation based on Meitec's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. 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)	81	70	59	59
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	78	74	75	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	47	58	32	31
DIVIDEND YIELD
DIVIDEND YIELD	90	95	96	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	96	75	65	72

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 11 (better than 11% compared with alternatives), Meitec 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 Meitec. Sales Growth has a below market rank of 15, which means that, currently, professionals expect the company to grow less than 85% of its competitors. The same is valid for Capital Growth, with a rank of 33, and Profit Growth, with a rank of 17. Currently, professionals expect the company to grow its profits less than 83% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 61, which means that the stock returns have recently been above 61% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 11, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Meitec, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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 low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	22	46	28	15
PROFIT GROWTH
PROFIT GROWTH	40	53	23	17
CAPITAL GROWTH
CAPITAL GROWTH	n/a	31	28	33
STOCK RETURNS
STOCK RETURNS	45	85	65	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	26	55	17	11

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 59 (better than 59% compared with alternatives), the company Meitec 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 Meitec 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 two out of three are above average for Meitec.Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 67, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Liquidity is at 1, meaning that the company generates less profit to service its debt than 99% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 59 (better than 59% compared with alternatives), Meitec has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Meitec more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	96	100	100	100
REFINANCING
REFINANCING	71	97	67	67
LIQUIDITY
LIQUIDITY	100	79	79	1
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	96	87	87	59

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Meitec 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	23	9	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	79	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	78	94	^new
MARKET PULSE
MARKET PULSE	n/a	10	58	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	28	76	^new

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