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Nippon Densetsu Kogyo (TSE:1950)

JP3736200001

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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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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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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 a good value (attractively priced) with a consolidated Value Rank of 73 (better than 73% of alternatives), are safely financed (Safety Rank of 97, which means low debt burdens), but show below-average growth (Growth Rank of 11). ...read more

RECOMMENDATION: A Combined Rank of 58, is a buy recommendation based on Nippon Densetsu Kogyo's financial characteristics. As the company Nippon Densetsu Kogyo's key financial metrics exhibit good value (Obermatt Value Rank of 73) but low growth (Obermatt Growth Rank of 11) while being safely financed (Obermatt Safety Rank of 97), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 73% 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	73
Growth Rank	11
Safety Rank	97
Combined Rank	58

Country	Japan
Industry	Construction & Engineering
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

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Research History: Nippon Densetsu Kogyo

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	81	57	38	73
GROWTH
GROWTH	7	13	57	11
SAFETY
SAFETY	100	67	67	97
SENTIMENT
SENTIMENT	n/a	12	10	^new
360° VIEW
360° VIEW	n/a	6	6	^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 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	73
GROWTH
GROWTH	7	13	57	11
SAFETY
SAFETY	100	67	67	97
COMBINED
COMBINED	78	38	38	58

Last update of combined financial performance: 4-Jul-2024. 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 73 (better than 73% compared with alternatives), Nippon Densetsu Kogyo 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 Nippon Densetsu Kogyo. Price-to-Sales is 63 which means that the stock price compared with what market professionals expect for future sales is lower than for 63% of comparable companies, indicating a good value for Nippon Densetsu Kogyo's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 76% 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 90. Compared with other companies in the same industry, dividend yields of Nippon Densetsu Kogyo are expected to be higher than for 59% of all competitors (a Dividend Yield rank of 59). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 73, is a buy recommendation based on Nippon Densetsu Kogyo'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 Nippon Densetsu Kogyo 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)	76	68	51	63
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	55	59	76
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	96	92	83	90
DIVIDEND YIELD
DIVIDEND YIELD	60	39	41	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	81	57	38	73

Last update of Value Rank: 14-Nov-2024. 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 11 (better than 11% compared with alternatives), Nippon Densetsu Kogyo 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 Nippon Densetsu Kogyo. Only Capital Growth has a good rank of 57, which means that currently professionals expect the company to grow its invested capital more than 27% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 44 which means that currently professionals expect the company to grow less than 56% of its competitors. Profit Growth with a rank of 27 and Stock Returns with a rank of 11 are also low (below 89% 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. 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 Nippon Densetsu Kogyo 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. 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	19	55	9	44
PROFIT GROWTH
PROFIT GROWTH	75	37	81	27
CAPITAL GROWTH
CAPITAL GROWTH	n/a	13	73	57
STOCK RETURNS
STOCK RETURNS	28	3	57	11
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	13	57	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 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 95, 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 95% 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	96
REFINANCING
REFINANCING	84	97	91	95
LIQUIDITY
LIQUIDITY	100	72	72	3
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	67	67	97

Last update of Safety Rank: 4-Jul-2024. 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: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Nippon Densetsu Kogyo.
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