Fact based stock research
NOF (TSE:4403)
JP3753400005
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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.
NOF stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), NOF (Diversified Chemicals, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of NOF are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives). But they show above-average growth (Growth Rank of 85) and are safely financed (Safety Rank of 85, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on NOF's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company NOF exhibits low value (Obermatt Value Rank of 11), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 85). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 85) 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
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360° Viewnew| Country | Japan |
| Industry | Diversified Chemicals |
| Index | |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: NOF
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 65 |
|
17 |
|
11 |
|
11 |
|
| GROWTH | ||||||||
| GROWTH | 52 |
|
69 |
|
63 |
|
85 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
86 |
|
78 |
|
85 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
96 |
|
100 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
89 |
|
76 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), NOF (Diversified Chemicals, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of NOF are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives). But they show above-average growth (Growth Rank of 85) and are safely financed (Safety Rank of 85, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on NOF's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company NOF exhibits low value (Obermatt Value Rank of 11), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 85). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 85) 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
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 65 |
|
17 |
|
11 |
|
11 |
|
| GROWTH | ||||||||
| GROWTH | 52 |
|
69 |
|
63 |
|
85 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
86 |
|
78 |
|
85 |
|
| COMBINED | ||||||||
| COMBINED | 92 |
|
68 |
|
48 |
|
67 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 11 (worse than 89% compared with alternatives), NOF shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for NOF. Price-to-Sales is 13 which means that the stock price compared with what market professionals expect for future profits is higher than 87% of comparable companies, indicating a low value concerning NOF's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 15, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of NOF. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 41 and Dividend Yield, which is lower than 83% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 11, is a sell recommendation based on NOF's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for NOF? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as NOF? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. NOF may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 38 |
|
24 |
|
17 |
|
13 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 73 |
|
33 |
|
45 |
|
41 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 48 |
|
20 |
|
17 |
|
15 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 56 |
|
14 |
|
12 |
|
17 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 65 |
|
17 |
|
11 |
|
11 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 85 (better than 85% compared with alternatives) for 2024, NOF 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 NOF. Sales Growth has a rank of 78 which means that currently, professionals expect the company to grow more than 78% of its competitors. Capital Growth is also above 41% of competitors with a rank of 80, and Stock Returns with the rank of 65 is also an outperformance. Only Profit Growth is low with a rank of 41 which means that currently, professionals expect the company to grow its profits less than 59% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 85, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, NOF is a good growth 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. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 28 |
|
69 |
|
75 |
|
78 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 63 |
|
15 |
|
61 |
|
41 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
85 |
|
23 |
|
80 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 68 |
|
45 |
|
75 |
|
65 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 52 |
|
69 |
|
63 |
|
85 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 85 (better than 85% compared with alternatives) for 2024, the company NOF has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of NOF 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, with two out of three indicators above average for NOF. Leverage is at a rank of 92, meaning the company has a below-average debt-to-equity ratio. It has less debt than 92% of its competitors. Liquidity is also good at a rank of 95, meaning the company generates more profit to service its debt than 95% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 37, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 63% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 85 (better than 85% compared with alternatives), NOF has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for NOF. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with NOF 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 | 82 |
|
88 |
|
90 |
|
92 |
|
| REFINANCING | ||||||||
| REFINANCING | 70 |
|
41 |
|
33 |
|
37 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 100 |
|
94 |
|
96 |
|
95 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 100 |
|
86 |
|
78 |
|
85 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
100 |
|
95 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
98 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
96 |
|
99 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
47 |
|
42 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
96 |
|
100 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for NOF from November 14, 2024.
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