Fact based stock research
OBIC Business Consultants (TSE:4733)

JP3173500004

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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.

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OBIC Business Consultants stock research in summary

obc.co.jp

ANALYSIS: With an Obermatt Combined Rank of 79 (better than 79% compared with investment alternatives), OBIC Business Consultants (Application Software, Japan) shares have much better financial characteristics than comparable stocks. Shares of OBIC Business Consultants are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives) and show below-average growth (Growth Rank of 21) but are safely financed (Safety Rank of 88), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 79, is a strong buy recommendation based on OBIC Business Consultants's financial characteristics. As the company OBIC Business Consultants's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 45) and low growth (Obermatt Growth Rank of 21), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 88) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. 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	45
Growth Rank	21
Safety Rank	88
Combined Rank	79

Country	Japan
Industry	Application Software
Index
Size class	Small

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: OBIC Business Consultants

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	47	56	37	45
GROWTH
GROWTH	66	8	52	21
SAFETY
SAFETY	76	73	73	88
SENTIMENT
SENTIMENT	n/a	67	94	^new
360° VIEW
360° VIEW	n/a	35	37	^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 OBIC Business Consultants is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	47	56	37	45
GROWTH
GROWTH	66	8	52	21
SAFETY
SAFETY	76	73	73	88
COMBINED
COMBINED	74	32	32	79

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of OBIC Business Consultants the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), OBIC Business Consultants shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for OBIC Business Consultants. Expected dividend yields are higher than for 67% of comparable companies (a Dividend Yield rank of 67), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 51, which means that the stock price is lower compared with invested capital than for 51% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 3 which means that the stock price compared with what market professionals expect for future profits is higher than for 97% of comparable companies, indicating a low value concerning OBIC Business Consultants's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for OBIC Business Consultants with a rank of 37. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 63% of comparable companies, indicating a low value concerning OBIC Business Consultants's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on OBIC Business Consultants's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, OBIC Business Consultants may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. 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)	29	27	7	3
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	71	47	31	37
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	73	65	50	51
DIVIDEND YIELD
DIVIDEND YIELD	1	74	55	67
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	47	56	37	45

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), OBIC Business Consultants 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 OBIC Business Consultants. Sales Growth has a below market rank of 37, which means that, currently, professionals expect the company to grow less than 63% of its competitors. The same is valid for Capital Growth, with a rank of 29, and Profit Growth, with a rank of 31. Currently, professionals expect the company to grow its profits less than 69% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 61, which means that the stock returns have recently been above 61% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for OBIC Business Consultants, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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 low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	43	11	43	37
PROFIT GROWTH
PROFIT GROWTH	17	63	61	31
CAPITAL GROWTH
CAPITAL GROWTH	n/a	19	16	29
STOCK RETURNS
STOCK RETURNS	52	18	84	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	66	8	52	21

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of OBIC Business Consultants.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company OBIC Business Consultants has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of OBIC Business Consultants 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 OBIC Business Consultants.Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 77, 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 77% of its competitors. Liquidity is at 1, meaning that the company generates less profit to service its debt than 99% 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 88 (better than 88% compared with alternatives), OBIC Business Consultants 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 OBIC Business Consultants more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	90	100	100	100
REFINANCING
REFINANCING	19	84	80	77
LIQUIDITY
LIQUIDITY	100	86	86	1
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	73	73	88

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of OBIC Business Consultants 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	49	87	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	35	93	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	92	88	^new
MARKET PULSE
MARKET PULSE	n/a	25	40	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	67	94	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for OBIC Business Consultants.
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