Fact based stock research
SHO-BOND Holdings (TSE:1414)

JP3360250009

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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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SHO-BOND Holdings stock research in summary

sho-bondhd.jp

ANALYSIS: With an Obermatt Combined Rank of 3 (worse than 97% compared with investment alternatives), SHO-BOND Holdings (Construction & Engineering, Japan) shares have lower financial characteristics compared with similar stocks. Shares of SHO-BOND Holdings are low in value (priced high) with a consolidated Value Rank of 15 (worse than 85% of alternatives), show below-average growth (Growth Rank of 9), and are riskily financed (Safety Rank of 35), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 3, is a sell recommendation based on SHO-BOND Holdings's financial characteristics. As the company SHO-BOND Holdings's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 15), low growth (Obermatt Growth Rank of 9), and risky financing practices (Obermatt Safety Rank of 35), 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. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to 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	15
Growth Rank	9
Safety Rank	35
Combined Rank	3

Country	Japan
Industry	Construction & Engineering
Index
Size class	Medium

23-Jan-2025. 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: SHO-BOND Holdings

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	8	7	15
GROWTH
GROWTH	56	31	25	9
SAFETY
SAFETY	90	97	97	35
SENTIMENT
SENTIMENT	n/a	6	93	^new
360° VIEW
360° VIEW	n/a	8	35	^new

Most recent update of the stock research: 23-Jan-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better SHO-BOND Holdings is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	8	7	15
GROWTH
GROWTH	56	31	25	9
SAFETY
SAFETY	90	97	97	35
COMBINED
COMBINED	73	78	78	3

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of SHO-BOND Holdings the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 15 (worse than 85% compared with alternatives), SHO-BOND Holdings shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for SHO-BOND Holdings. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 53% 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 5 which means that the stock price compared with what market professionals expect for future profits is higher than 95% of comparable companies, indicating a low value concerning SHO-BOND Holdings's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 27 which means that the stock price compared with what market professionals expect for future profit levels is higher than 73% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 26 is also low. Compared with invested capital, the stock price is higher than for 74% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 15, is a sell recommendation based on SHO-BOND Holdings's stock price compared with the company's operational size and dividend yields. Should dividend investors pick SHO-BOND Holdings? 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 SHO-BOND Holdings 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)	7	5	7	5
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	49	14	13	27
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	12	10	12	26
DIVIDEND YIELD
DIVIDEND YIELD	72	32	34	53
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	38	8	7	15

Last update of Value Rank: 23-Jan-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of SHO-BOND Holdings; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 9 (better than 9% compared with alternatives), SHO-BOND Holdings 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 metrics below average for SHO-BOND Holdings. While Profit Growth has a good rank of 57, as professionals currently expect the company to grow its profits more than 57% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 15, which means that currently professionals expect the company to grow less than 85% of its competitors, while Capital Growth has a rank of 35 and Stock Returns have been below market median, with a rank of 6 (94% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 9, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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	38	39	34	15
PROFIT GROWTH
PROFIT GROWTH	50	36	40	57
CAPITAL GROWTH
CAPITAL GROWTH	n/a	4	36	35
STOCK RETURNS
STOCK RETURNS	50	75	33	6
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	56	31	25	9

Last update of Growth Rank: 23-Jan-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of SHO-BOND Holdings.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 35 (better than 35% compared with alternatives), the company SHO-BOND Holdings has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of SHO-BOND Holdings is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, 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 SHO-BOND Holdings.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 55, 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 55% 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 35 (worse than 65% compared with alternatives), SHO-BOND Holdings has a financing structure that is riskier 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 SHO-BOND Holdings more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	68	100	100	100
REFINANCING
REFINANCING	42	31	31	55
LIQUIDITY
LIQUIDITY	100	88	88	1
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90	97	97	35

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of SHO-BOND Holdings 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	69	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	83	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	14	83	^new
MARKET PULSE
MARKET PULSE	n/a	17	60	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	6	93	^new

Last update of Sentiment Rank: 23-Jan-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for SHO-BOND Holdings.
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