Fact based stock research
Shin Zu Shing (TSEC:3376)

TW0003376000

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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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Shin Zu Shing stock research in summary

szs.com.tw

ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), Shin Zu Shing (Industrial Machinery, Taiwan) shares have much better financial characteristics than comparable stocks. Shares of Shin Zu Shing are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives). But they show above-average growth (Growth Rank of 87) and are safely financed (Safety Rank of 68, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on Shin Zu Shing's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Shin Zu Shing exhibits low value (Obermatt Value Rank of 31), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 87). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 68) 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	31
Growth Rank	87
Safety Rank	68
Combined Rank	76

Country	Taiwan
Industry	Industrial Machinery
Index	FTSE Taiwan
Size class	Medium

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: Shin Zu Shing

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	75	55	31
GROWTH
GROWTH	1	21	55	87
SAFETY
SAFETY	98	86	76	68
SENTIMENT
SENTIMENT	n/a	100	57	^new
360° VIEW
360° VIEW	n/a	87	75	^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 Shin Zu Shing is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	75	55	31
GROWTH
GROWTH	1	21	55	87
SAFETY
SAFETY	98	86	76	68
COMBINED
COMBINED	78	74	74	76

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Shin Zu Shing 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 below average for Shin Zu Shing. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 64% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 19 which means that the stock price compared with what market professionals expect for future profits is higher than 81% of comparable companies, indicating a low value concerning Shin Zu Shing's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 19 which means that the stock price compared with what market professionals expect for future profit levels is higher than 81% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 37 is also low. Compared with invested capital, the stock price is higher than for 63% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Shin Zu Shing's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Shin Zu Shing? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Shin Zu Shing only if they reasonably expect the low current profit levels to be transitory. 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)	67	41	27	19
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	76	65	30	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	86	71	48	37
DIVIDEND YIELD
DIVIDEND YIELD	98	98	87	64
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	83	75	55	31

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 87 (better than 87% compared with alternatives) for 2024, Shin Zu Shing 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 Shin Zu Shing. Sales Growth has a rank of 85 which means that currently, professionals expect the company to grow more than 85% of its competitors. Both Profit Growth, with a rank of 85, and Stock Returns, with a rank of 91, are also above average. But Capital Growth only has a rank of 44, which means that, currently, professionals expect the company to grow its invested capital less than 56% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 87, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. 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	4	70	89	85
PROFIT GROWTH
PROFIT GROWTH	31	6	12	85
CAPITAL GROWTH
CAPITAL GROWTH	n/a	92	7	44
STOCK RETURNS
STOCK RETURNS	6	11	91	91
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	1	21	55	87

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Shin Zu Shing.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 68 (better than 68% compared with alternatives), the company Shin Zu Shing has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Shin Zu Shing 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 Shin Zu Shing. Leverage is at a rank of 74, meaning the company has a below-average debt-to-equity ratio. It has less debt than 74% of its competitors. Liquidity is also good at a rank of 60, meaning the company generates more profit to service its debt than 60% 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 47, 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 53% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 68 (better than 68% compared with alternatives), Shin Zu Shing has a financing structure that is 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 Shin Zu Shing. 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 Shin Zu Shing 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	92	76	70	74
REFINANCING
REFINANCING	68	69	53	47
LIQUIDITY
LIQUIDITY	98	90	77	60
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	86	76	68

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Shin Zu Shing 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	100	21	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	61	67	^new
MARKET PULSE
MARKET PULSE	n/a	100	91	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	100	57	^new

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