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Nippon Densetsu Kogyo (TSE:1950)

JP3736200001

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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:
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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Nippon Densetsu Kogyo stock research in summary

densetsuko.co.jp

ANALYSIS: With an Obermatt Combined Rank of 58 (better than 58% compared with investment alternatives), Nippon Densetsu Kogyo (Construction & Engineering, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Nippon Densetsu Kogyo are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 51) and are safely financed (Safety Rank of 97, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 58, is a buy recommendation based on Nippon Densetsu Kogyo's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Nippon Densetsu Kogyo exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 51). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 97) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	Japan
Industry	Construction & Engineering
Index
Size class	Large

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Research History: Nippon Densetsu Kogyo

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	81	57	38	n/a
GROWTH
GROWTH	7	13	57	n/a
SAFETY
SAFETY	100	67	67	n/a
SENTIMENT
SENTIMENT	n/a	12	10	^new
360° VIEW
360° VIEW	n/a	6	6	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Nippon Densetsu Kogyo is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	81	57	38	n/a
GROWTH
GROWTH	7	13	57	n/a
SAFETY
SAFETY	100	67	67	n/a
COMBINED
COMBINED	78	38	38	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Nippon Densetsu Kogyo the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Nippon Densetsu Kogyo 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 above average for Nippon Densetsu Kogyo. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value regarding Nippon Densetsu Kogyo's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 60% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 82. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 46% of all competitors have even lower dividend yields than Nippon Densetsu Kogyo (a Dividend Yield Rank of 46). 54% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Nippon Densetsu Kogyo's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. 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)	76	68	51	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	55	59	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	96	92	83	n/a
DIVIDEND YIELD
DIVIDEND YIELD	60	39	41	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	81	57	38	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Nippon Densetsu Kogyo; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), Nippon Densetsu Kogyo shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Nippon Densetsu Kogyo. Profit Growth, with a rank of 77 (better than 77% of its competitors), and Capital Growth, with a rank of 57, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 11, which means that, currently, professionals expect the company to grow less than 89% of its competitors, and Stock Returns are at a rank of 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. 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	19	55	9	n/a
PROFIT GROWTH
PROFIT GROWTH	75	37	81	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	13	73	n/a
STOCK RETURNS
STOCK RETURNS	28	3	57	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	13	57	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Nippon Densetsu Kogyo.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 97 (better than 97% compared with alternatives) for 2024, the company Nippon Densetsu Kogyo has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Nippon Densetsu Kogyo 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 Nippon Densetsu Kogyo.Leverage is at 96, meaning the company has a below-average debt-to-equity ratio. It has less debt than 96% of its competitors.Refinancing is at a rank of 91, 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 91% of its competitors. Liquidity is at 3, meaning that the company generates less profit to service its debt than 97% 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 97 (better than 97% compared with alternatives), Nippon Densetsu Kogyo has a financing structure that is significantly 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 Nippon Densetsu Kogyo more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	96	96	96	n/a
REFINANCING
REFINANCING	84	97	91	n/a
LIQUIDITY
LIQUIDITY	100	72	72	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	67	67	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Nippon Densetsu Kogyo 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	64	59	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	42	6	^new
MARKET PULSE
MARKET PULSE	n/a	1	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	12	10	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Nippon Densetsu Kogyo.
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