Fact based stock research
Menicon (TSE:7780)

JP3921270009

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.

Menicon stock research in summary

menicon.co.jp

ANALYSIS: With an Obermatt Combined Rank of 46 (worse than 54% compared with investment alternatives), Menicon (Health Care Supplies, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Menicon are a good value (attractively priced) with a consolidated Value Rank of 73 (better than 73% of alternatives) but show below-average growth (Growth Rank of 31), and are riskily financed (Safety Rank of 39), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 46, is a hold recommendation based on Menicon's financial characteristics. As the company Menicon's key financial metrics exhibit good value (Obermatt Value Rank of 73) but low growth (Obermatt Growth Rank of 31) and risky financing practices (Obermatt Safety Rank of 39), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 73% of comparable companies, may indicate 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. 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	73
Growth Rank	31
Safety Rank	39
Combined Rank	46

Country	Japan
Industry	Health Care Supplies
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

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

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: Menicon

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	64	41	38	73
GROWTH
GROWTH	38	39	63	31
SAFETY
SAFETY	37	51	59	39
SENTIMENT
SENTIMENT	n/a	90	66	^new
360° VIEW
360° VIEW	n/a	71	71	^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 Menicon is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	64	41	38	73
GROWTH
GROWTH	38	39	63	31
SAFETY
SAFETY	37	51	59	39
COMBINED
COMBINED	40	40	67	46

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 73 (better than 73% compared with alternatives), Menicon 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 Menicon. Price-to-Sales is 72 which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value for Menicon's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 69% 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 59. Compared with other companies in the same industry, dividend yields of Menicon are expected to be higher than for 52% of all competitors (a Dividend Yield rank of 52). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 73, is a buy recommendation based on Menicon'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 Menicon 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)	69	56	60	72
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	69	34	43	69
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	37	36	38	59
DIVIDEND YIELD
DIVIDEND YIELD	59	29	35	52
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	64	41	38	73

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), Menicon 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 metrics below average for Menicon. While Profit Growth has a good rank of 88, as professionals currently expect the company to grow its profits more than 88% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 29, which means that currently professionals expect the company to grow less than 71% of its competitors, while Capital Growth has a rank of 34 and Stock Returns have been below market median, with a rank of 1 (99% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 31, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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	35	32	64	29
PROFIT GROWTH
PROFIT GROWTH	n/a	36	63	88
CAPITAL GROWTH
CAPITAL GROWTH	n/a	65	67	34
STOCK RETURNS
STOCK RETURNS	59	39	21	1
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	38	39	63	31

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 39 (better than 39% compared with alternatives), the company Menicon 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 Menicon 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 Menicon and the other two below average. Refinancing is at 65, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 65% of its competitors. But Leverage is high with a rank of 15, meaning the company has an above-average debt-to-equity ratio. It has more debt than 85% of its competitors. Liquidity is also on the riskier side with a rank of 45, meaning the company generates less profit to service its debt than 55% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 39 (worse than 61% compared with alternatives), Menicon has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Menicon are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Menicon 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	31	20	21	15
REFINANCING
REFINANCING	55	61	73	65
LIQUIDITY
LIQUIDITY	52	60	58	45
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	37	51	59	39

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Menicon 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	91	97	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	74	31	^new
MARKET PULSE
MARKET PULSE	n/a	34	60	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	90	66	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Menicon.
Upgrade to a Premium Account to access the latest ranks.