Fact based stock research
Tohoku Electric Power (TSE:9506)

JP3605400005

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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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Tohoku Electric Power stock research in summary

tohoku-epco.co.jp

ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), Tohoku Electric Power (Electric Utilities, Japan) shares have much better financial characteristics than comparable stocks. Shares of Tohoku Electric Power are a good value (attractively priced) with a consolidated Value Rank of 85 (better than 85% of alternatives), are safely financed (Safety Rank of 70, which means low debt burdens), but show below-average growth (Growth Rank of 19). ...read more

RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on Tohoku Electric Power's financial characteristics. As the company Tohoku Electric Power's key financial metrics exhibit good value (Obermatt Value Rank of 85) but low growth (Obermatt Growth Rank of 19) while being safely financed (Obermatt Safety Rank of 70), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 85% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. 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	85
Growth Rank	19
Safety Rank	70
Combined Rank	76

Country	Japan
Industry	Electric Utilities
Index
Size class	XX-Large

19-Dec-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: Tohoku Electric Power

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	89	87	85
GROWTH
GROWTH	6	27	53	19
SAFETY
SAFETY	1	16	26	70
SENTIMENT
SENTIMENT	n/a	4	36	^new
360° VIEW
360° VIEW	n/a	15	45	^new

Most recent update of the stock research: 19-Dec-2024. 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 Tohoku Electric Power is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	89	87	85
GROWTH
GROWTH	6	27	53	19
SAFETY
SAFETY	1	16	26	70
COMBINED
COMBINED	21	34	62	76

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Tohoku Electric Power the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 85 (better than 85% compared with alternatives) for 2024, Tohoku Electric Power shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Tohoku Electric Power. Price-to-Sales (P/S) is 91, which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value regarding Tohoku Electric Power'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 85. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 30% of all competitors have even lower dividend yields than Tohoku Electric Power (a Dividend Yield Rank of 30). 70% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 85, is a buy recommendation based on Tohoku Electric Power'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)	100	93	95	91
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	16	84	100	95
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	96	89	85	85
DIVIDEND YIELD
DIVIDEND YIELD	67	31	26	30
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	84	89	87	85

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Tohoku Electric Power; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Tohoku Electric Power 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 indicators below average for Tohoku Electric Power. Sales Growth has a below market rank of 14, which means that, currently, professionals expect the company to grow less than 86% of its competitors. The same is valid for Capital Growth, with a rank of 33, and Profit Growth, with a rank of 10. Currently, professionals expect the company to grow its profits less than 90% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 69, which means that the stock returns have recently been above 69% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Tohoku Electric Power, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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 low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	22	35	4	14
PROFIT GROWTH
PROFIT GROWTH	79	12	90	10
CAPITAL GROWTH
CAPITAL GROWTH	n/a	63	31	33
STOCK RETURNS
STOCK RETURNS	10	43	89	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	6	27	53	19

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Tohoku Electric Power.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Tohoku Electric Power 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 Tohoku Electric Power 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 Tohoku Electric Power. Refinancing is at 81, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 81% of its competitors. Liquidity is also good at 69, meaning the company generates more profit to service its debt than 69% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 12, which means the company has an above-average debt-to-equity ratio. It has more debt than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Tohoku Electric Power has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Tohoku Electric Power could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Tohoku Electric Power 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	2	14	6	12
REFINANCING
REFINANCING	2	11	91	81
LIQUIDITY
LIQUIDITY	3	57	6	69
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	1	16	26	70

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Tohoku Electric Power 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	25	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	93	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	37	63	^new
MARKET PULSE
MARKET PULSE	n/a	1	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	4	36	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Tohoku Electric Power.
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