Fact based stock research
Sotetsu Holdings (TSE:9003)
JP3316400005
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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.
Sotetsu Holdings stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), Sotetsu Holdings (Railroads, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Sotetsu Holdings are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives) but show below-average growth (Growth Rank of 49), and are riskily financed (Safety Rank of 19), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on Sotetsu Holdings's financial characteristics. As the company Sotetsu Holdings's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 49) and risky financing practices (Obermatt Safety Rank of 19), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 67% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Japan |
| Industry | Railroads |
| Index | |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Sotetsu Holdings
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 27 |
|
49 |
|
59 |
|
67 |
|
| GROWTH | ||||||||
| GROWTH | 6 |
|
29 |
|
83 |
|
49 |
|
| SAFETY | ||||||||
| SAFETY | 18 |
|
14 |
|
5 |
|
19 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
28 |
|
73 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
17 |
|
69 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), Sotetsu Holdings (Railroads, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Sotetsu Holdings are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives) but show below-average growth (Growth Rank of 49), and are riskily financed (Safety Rank of 19), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on Sotetsu Holdings's financial characteristics. As the company Sotetsu Holdings's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 49) and risky financing practices (Obermatt Safety Rank of 19), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 67% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 27 |
|
49 |
|
59 |
|
67 |
|
| GROWTH | ||||||||
| GROWTH | 6 |
|
29 |
|
83 |
|
49 |
|
| SAFETY | ||||||||
| SAFETY | 18 |
|
14 |
|
5 |
|
19 |
|
| COMBINED | ||||||||
| COMBINED | 12 |
|
20 |
|
51 |
|
45 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), Sotetsu Holdings shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Sotetsu Holdings. Price-to-Sales (P/S) is 72, which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value concerning Sotetsu Holdings's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 74% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 51 (dividends are expected to be higher than 51% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 70% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Sotetsu Holdings to 30. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on Sotetsu Holdings's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. 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) | 73 |
|
87 |
|
74 |
|
72 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 1 |
|
26 |
|
62 |
|
74 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 56 |
|
50 |
|
31 |
|
30 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 28 |
|
32 |
|
42 |
|
51 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 27 |
|
49 |
|
59 |
|
67 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Sotetsu Holdings 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 Sotetsu Holdings. Sales Growth has a rank of 53, which means that, currently, professionals expect the company to grow more than 53% of its competitors. Profit Growth with a rank of 64 is also above average. But Capital Growth has only a rank of 47, and Stock Returns with 35 are also below-average. Stock returns for Sotetsu Holdings have recently been below 65% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Sotetsu Holdings. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt 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 | 21 |
|
67 |
|
63 |
|
53 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 20 |
|
51 |
|
98 |
|
64 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
21 |
|
9 |
|
47 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 14 |
|
17 |
|
81 |
|
35 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 6 |
|
29 |
|
83 |
|
49 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 19 (better than 19% compared with alternatives), the company Sotetsu Holdings has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Sotetsu 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, with just one indicator above average for Sotetsu Holdings. Liquidity is at 70, meaning the company generates more profit to service its debt than 70% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 23, 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 77% of its competitors. Leverage is also high at a rank of 2, which means that the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 19 (worse than 81% compared with alternatives), Sotetsu Holdings has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 10 |
|
10 |
|
2 |
|
2 |
|
| REFINANCING | ||||||||
| REFINANCING | 64 |
|
25 |
|
13 |
|
23 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 29 |
|
37 |
|
36 |
|
70 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 18 |
|
14 |
|
5 |
|
19 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
26 |
|
57 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
44 |
|
77 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
40 |
|
49 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
28 |
|
73 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Sotetsu Holdings from November 14, 2024.
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