Fact based stock research
Shinko Electric Industries (TSE:6967)

JP3375800004

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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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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Shinko Electric Industries stock research in summary

shinko.co.jp

ANALYSIS: With an Obermatt Combined Rank of 47 (worse than 53% compared with investment alternatives), Shinko Electric Industries (Semiconductors, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Shinko Electric Industries are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives) and show below-average growth (Growth Rank of 47) but are safely financed (Safety Rank of 67), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 47, is a hold recommendation based on Shinko Electric Industries's financial characteristics. As the company Shinko Electric Industries's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 35) and low growth (Obermatt Growth Rank of 47), 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 67) 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	35
Growth Rank	47
Safety Rank	67
Combined Rank	47

Country	Japan
Industry	Semiconductors
Index	Low Emissions
Size class	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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Research History: Shinko Electric Industries

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	74	35	39	35
GROWTH
GROWTH	82	77	25	47
SAFETY
SAFETY	93	59	61	67
SENTIMENT
SENTIMENT	n/a	44	34	^new
360° VIEW
360° VIEW	n/a	59	17	^new

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

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	74	35	39	35
GROWTH
GROWTH	82	77	25	47
SAFETY
SAFETY	93	59	61	67
COMBINED
COMBINED	100	65	29	47

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), Shinko Electric Industries 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 Shinko Electric Industries. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value regarding Shinko Electric Industries's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 53% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 16% of all competitors have even lower dividend yields than Shinko Electric Industries (a Dividend Yield Rank of 16). 84% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on Shinko Electric Industries's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. 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)	62	54	53	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	77	51	60	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	51	48	52	56
DIVIDEND YIELD
DIVIDEND YIELD	79	14	16	16
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	74	35	39	35

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 47 (better than 47% compared with alternatives), Shinko Electric Industries 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 half of the indicators below and half above average for Shinko Electric Industries. Profit Growth has a rank of 69, which means that currently professionals expect the company to grow its profits more than 69% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 69 (above 69% of alternative investments). But Sales Growth has a below the median rank of 47, which means that, currently, professionals expect the company to grow less than 53% of its competitors, and Capital Growth also has a lower rank of 13. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 47, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Shinko Electric Industries. 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 mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	60	35	55	47
PROFIT GROWTH
PROFIT GROWTH	75	88	33	69
CAPITAL GROWTH
CAPITAL GROWTH	n/a	18	7	13
STOCK RETURNS
STOCK RETURNS	80	93	63	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	82	77	25	47

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 67 (better than 67% compared with alternatives), the company Shinko Electric Industries 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 Shinko Electric Industries 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 Shinko Electric Industries. Leverage is at a rank of 65, meaning the company has a below-average debt-to-equity ratio. It has less debt than 65% of its competitors. Liquidity is also good at a rank of 82, meaning the company generates more profit to service its debt than 82% 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 27, 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 73% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 67 (better than 67% compared with alternatives), Shinko Electric Industries 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 Shinko Electric Industries. 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 Shinko Electric Industries 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	61	52	54	65
REFINANCING
REFINANCING	49	25	23	27
LIQUIDITY
LIQUIDITY	100	83	95	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	93	59	61	67

Last update of Safety Rank: 2-May-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Shinko Electric Industries 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	78	45	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	31	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	94	86	^new
MARKET PULSE
MARKET PULSE	n/a	13	23	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	44	34	^new

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