Fact based stock research
Shimadzu (TSE:7701)

JP3357200009

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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.

Shimadzu stock research in summary

shimadzu.co.jp

ANALYSIS: With an Obermatt Combined Rank of 51 (better than 51% compared with investment alternatives), Shimadzu (Electronic Equipment, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Shimadzu are low in value (priced high) with a consolidated Value Rank of 32 (worse than 68% of alternatives) and show below-average growth (Growth Rank of 27) but are safely financed (Safety Rank of 92), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 51, is a buy recommendation based on Shimadzu's financial characteristics. As the company Shimadzu's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 32) and low growth (Obermatt Growth Rank of 27), 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 92) 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	32
Growth Rank	27
Safety Rank	92
Combined Rank	51

Country	Japan
Industry	Electronic Equipment
Index
Size class	X-Large

2-May-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: Shimadzu

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	31	40	32
GROWTH
GROWTH	56	21	41	27
SAFETY
SAFETY	83	80	88	92
SENTIMENT
SENTIMENT	n/a	43	49	^new
360° VIEW
360° VIEW	n/a	37	60	^new

Most recent update of the stock research: 2-May-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Shimadzu is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	31	40	32
GROWTH
GROWTH	56	21	41	27
SAFETY
SAFETY	83	80	88	92
COMBINED
COMBINED	73	36	51	51

Last update of combined financial performance: 2-May-2024. Stock analysis on combined financial performance: The higher the rank of Shimadzu the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 32 (worse than 68% compared with alternatives), Shimadzu shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Shimadzu. Price-to-Sales is 42 which means that the stock price compared with what market professionals expect for future profits is higher than 58% of comparable companies, indicating a low value concerning Shimadzu's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 41, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Shimadzu. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 39 and Dividend Yield, which is lower than 62% 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 32, is a hold recommendation based on Shimadzu's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Shimadzu? 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 Shimadzu? 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. Shimadzu 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)	57	37	39	42
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53	16	43	39
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	33	43	51	41
DIVIDEND YIELD
DIVIDEND YIELD	62	22	34	38
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	50	31	40	32

Last update of Value Rank: 2-May-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Shimadzu; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), Shimadzu shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Shimadzu. Only Capital Growth has a good rank of 70, which means that currently professionals expect the company to grow its invested capital more than 35% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 10 which means that currently professionals expect the company to grow less than 90% of its competitors. Profit Growth with a rank of 35 and Stock Returns with a rank of 31 are also low (below 69% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold 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 Shimadzu 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	25	7	10
PROFIT GROWTH
PROFIT GROWTH	50	40	69	35
CAPITAL GROWTH
CAPITAL GROWTH	n/a	30	81	70
STOCK RETURNS
STOCK RETURNS	70	49	29	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	56	21	41	27

Last update of Growth Rank: 2-May-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Shimadzu.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 92 (better than 92% compared with alternatives) for 2024, the company Shimadzu has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Shimadzu 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 Shimadzu. Leverage is at 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors. Refinancing is at a rank of 58, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 58% of its competitors. Finally, Liquidity is also good at a rank of 87, which means that the company generates more profit to service its debt than 87% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 92 (better than 92% compared with alternatives), Shimadzu 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 Shimadzu 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	71	86	89	89
REFINANCING
REFINANCING	39	41	52	58
LIQUIDITY
LIQUIDITY	100	86	88	87
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	83	80	88	92

Last update of Safety Rank: 2-May-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Shimadzu 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	32	56	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	82	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	87	34	^new
MARKET PULSE
MARKET PULSE	n/a	20	27	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	43	49	^new

Last update of Sentiment Rank: 2-May-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Shimadzu.
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