Fact based stock research
Taiheiyo Cement (TSE:5233)

JP3449020001

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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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Taiheiyo Cement stock research in summary

taiheiyo-cement.co.jp

ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), Taiheiyo Cement (Construction Materials, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Taiheiyo Cement are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), show above-average growth (Growth Rank of 83) but are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 56, is a buy recommendation based on Taiheiyo Cement's financial characteristics. As the company Taiheiyo Cement's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 63) and above-average growth (Obermatt Growth Rank of 83), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 30) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	63
Growth Rank	83
Safety Rank	30
Combined Rank	56

Country	Japan
Industry	Construction Materials
Index	Nikkei 225
Size class	X-Large

This stock has achievements: Top 10 Stock.

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: Taiheiyo Cement

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	90	79	63
GROWTH
GROWTH	23	1	83	83
SAFETY
SAFETY	33	45	14	30
SENTIMENT
SENTIMENT	n/a	16	92	^new
360° VIEW
360° VIEW	n/a	21	90	^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 Taiheiyo Cement is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	90	79	63
GROWTH
GROWTH	23	1	83	83
SAFETY
SAFETY	33	45	14	30
COMBINED
COMBINED	42	39	67	56

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% compared with alternatives), Taiheiyo Cement 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 Taiheiyo Cement. Price-to-Sales (P/S) is 66, which means that the stock price compared with what market professionals expect for future sales is lower than for 66% of comparable companies, indicating a good value regarding Taiheiyo Cement's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 95% 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 66. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 33% of all competitors have even lower dividend yields than Taiheiyo Cement (a Dividend Yield Rank of 33). 67% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, is a buy recommendation based on Taiheiyo Cement'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)	93	89	82	66
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	100	93	95	95
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	96	95	86	66
DIVIDEND YIELD
DIVIDEND YIELD	74	40	48	33
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	98	90	79	63

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 83 (better than 83% compared with alternatives) for 2024, Taiheiyo Cement 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 half of the indicators below and half above average for Taiheiyo Cement. Profit Growth has a rank of 73, which means that currently professionals expect the company to grow its profits more than 73% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 87 (above 87% 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 48. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 83, is a buy 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 Taiheiyo Cement. 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	7	55	35	47
PROFIT GROWTH
PROFIT GROWTH	33	8	94	73
CAPITAL GROWTH
CAPITAL GROWTH	n/a	26	39	48
STOCK RETURNS
STOCK RETURNS	38	5	85	87
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	23	1	83	83

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Taiheiyo Cement 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 Taiheiyo Cement 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 Taiheiyo Cement. Liquidity is at 60, meaning the company generates more profit to service its debt than 60% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 31, 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 69% of its competitors. Leverage is also high at a rank of 30, which means that the company has an above-average debt-to-equity ratio. It has more debt than 70% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Taiheiyo Cement has a financing structure that is 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	6	42	20	30
REFINANCING
REFINANCING	90	21	35	31
LIQUIDITY
LIQUIDITY	30	59	18	60
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	33	45	14	30

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Taiheiyo Cement 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	27	84	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	26	89	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	60	74	^new
MARKET PULSE
MARKET PULSE	n/a	9	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	16	92	^new

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