Fact based stock research
Nippon Kayaku (TSE:4272)

JP3694400007

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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:
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.

Nippon Kayaku stock research in summary

nipponkayaku.co.jp

ANALYSIS: With an Obermatt Combined Rank of 97 (better than 97% compared with investment alternatives), Nippon Kayaku (Specialty Chemicals, Japan) shares have much better financial characteristics than comparable stocks. Shares of Nippon Kayaku are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 89) and are safely financed (Safety Rank of 97, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 97, is a strong buy recommendation based on Nippon Kayaku's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Nippon Kayaku exhibits low value (Obermatt Value Rank of 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 89). 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	49
Growth Rank	89
Safety Rank	97
Combined Rank	97

Country	Japan
Industry	Specialty Chemicals
Index	Low Emissions, Nikkei 225
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

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

Research History: Nippon Kayaku

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	39	25	49
GROWTH
GROWTH	47	49	21	89
SAFETY
SAFETY	100	96	98	97
SENTIMENT
SENTIMENT	n/a	44	28	^new
360° VIEW
360° VIEW	n/a	61	32	^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 Kayaku is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	39	25	49
GROWTH
GROWTH	47	49	21	89
SAFETY
SAFETY	100	96	98	97
COMBINED
COMBINED	100	76	40	97

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Nippon Kayaku the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), Nippon Kayaku 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 Kayaku. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 50 which means that the stock price compared with what market professionals expect for future profits is lower than for 50% of comparable companies, indicating a good value concerning Nippon Kayaku's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 65, and for Dividend Yield with a Dividend Yield Rank of 59. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 70% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 30). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on Nippon Kayaku's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Nippon Kayaku has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Nippon Kayaku shares. 9. 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	37	35	30
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91	41	19	50
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	98	78	49	65
DIVIDEND YIELD
DIVIDEND YIELD	86	46	54	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	98	39	25	49

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 89 (better than 89% compared with alternatives) for 2024, Nippon Kayaku shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Nippon Kayaku. Sales Growth has a value of 54 which means that currently professionals expect the company to grow more than 54% of its competitors. Profit Growth with a value of 92 and Capital Growth with a rank of 86 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 35, which means that stock returns have recently been below 65% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 89, is a buy recommendation for growth and momentum investors. Nippon Kayaku has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Nippon Kayaku, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. 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. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	32	69	33	54
PROFIT GROWTH
PROFIT GROWTH	50	29	18	92
CAPITAL GROWTH
CAPITAL GROWTH	n/a	21	28	86
STOCK RETURNS
STOCK RETURNS	56	65	69	35
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	47	49	21	89

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 Kayaku.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 97 (better than 97% compared with alternatives) for 2024, the company Nippon Kayaku has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Nippon Kayaku 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 all three are above average for Nippon Kayaku. Leverage is at 84, meaning the company has a below-average debt-to-equity ratio. It has less debt than 84% of its competitors. Refinancing is at a rank of 79, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 79% of its competitors. Finally, Liquidity is also good at a rank of 79, which means that the company generates more profit to service its debt than 79% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 97 (better than 97% compared with alternatives), Nippon Kayaku has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Nippon Kayaku but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	84	78	82	84
REFINANCING
REFINANCING	90	77	79	79
LIQUIDITY
LIQUIDITY	100	84	94	79
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	96	98	97

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Nippon Kayaku 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	13	13	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	88	50	^new
MARKET PULSE
MARKET PULSE	n/a	25	29	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	44	28	^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 Kayaku.
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