Fact based stock research
Towa Pharmaceutical (TSE:4553)
JP3623150004
How to read the free ranks
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.
Towa Pharmaceutical stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 75 (better than 75% compared with investment alternatives), Towa Pharmaceutical (Pharmaceuticals, Japan) shares have much better financial characteristics than comparable stocks. Shares of Towa Pharmaceutical are a good value (attractively priced) with a consolidated Value Rank of 100 (better than 100% of alternatives), are safely financed (Safety Rank of 51, which means low debt burdens), but show below-average growth (Growth Rank of 26). ...read more
RECOMMENDATION: A Combined Rank of 75, is a strong buy recommendation based on Towa Pharmaceutical's financial characteristics. As the company Towa Pharmaceutical's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 26) while being safely financed (Obermatt Safety Rank of 51), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 100% 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
Log in or sign up to see the new 360° View and Sentiment ranks.
360° Viewnew| Country | Japan |
| Industry | Pharmaceuticals |
| Index | |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Towa Pharmaceutical
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 100 |
|
99 |
|
100 |
|
100 |
|
| GROWTH | ||||||||
| GROWTH | 51 |
|
79 |
|
63 |
|
26 |
|
| SAFETY | ||||||||
| SAFETY | 46 |
|
63 |
|
37 |
|
51 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
37 |
|
45 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
91 |
|
73 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 75 (better than 75% compared with investment alternatives), Towa Pharmaceutical (Pharmaceuticals, Japan) shares have much better financial characteristics than comparable stocks. Shares of Towa Pharmaceutical are a good value (attractively priced) with a consolidated Value Rank of 100 (better than 100% of alternatives), are safely financed (Safety Rank of 51, which means low debt burdens), but show below-average growth (Growth Rank of 26). ...read more
RECOMMENDATION: A Combined Rank of 75, is a strong buy recommendation based on Towa Pharmaceutical's financial characteristics. As the company Towa Pharmaceutical's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 26) while being safely financed (Obermatt Safety Rank of 51), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 100% 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
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 100 |
|
99 |
|
100 |
|
100 |
|
| GROWTH | ||||||||
| GROWTH | 51 |
|
79 |
|
63 |
|
26 |
|
| SAFETY | ||||||||
| SAFETY | 46 |
|
63 |
|
37 |
|
51 |
|
| COMBINED | ||||||||
| COMBINED | 97 |
|
98 |
|
88 |
|
75 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 100 (better than 100% compared with alternatives) for 2024, Towa Pharmaceutical shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Towa Pharmaceutical. Price-to-Sales is 97 which means that the stock price compared with what market professionals expect for future sales is lower than for 97% of comparable companies, indicating a good value for Towa Pharmaceutical's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 92% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 90. Compared with other companies in the same industry, dividend yields of Towa Pharmaceutical are expected to be higher than for 57% of all competitors (a Dividend Yield rank of 57). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 100, is a buy recommendation based on Towa Pharmaceutical's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Towa Pharmaceutical based on its detailed value metrics. 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) | 92 |
|
100 |
|
97 |
|
97 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 100 |
|
100 |
|
90 |
|
92 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 77 |
|
82 |
|
89 |
|
90 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 77 |
|
81 |
|
76 |
|
57 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 100 |
|
99 |
|
100 |
|
100 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 26 (better than 26% compared with alternatives), Towa Pharmaceutical 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 Towa Pharmaceutical. Sales Growth has a rank of 51 which means that currently professionals expect the company to grow more than 51% of its competitors. Stock Returns are also above average with a rank of 58. But Capital Growth has only a rank of 18, which means that currently professionals expect the company to grow its invested capital less than 82% of its competitors. Profit Growth is also low, with a rank of only 16, which means that, currently, professionals expect the company to grow its profits below average. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 26, is a hold recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 58% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. 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 | 38 |
|
72 |
|
46 |
|
51 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 1 |
|
55 |
|
96 |
|
16 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
5 |
|
7 |
|
18 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 85 |
|
100 |
|
63 |
|
58 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 51 |
|
79 |
|
63 |
|
26 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 51 (better than 51% compared with alternatives), the company Towa Pharmaceutical 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 Towa Pharmaceutical 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 just one indicator above average for Towa Pharmaceutical and the other two below average. Refinancing is at 100, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. But Leverage is high with a rank of 3, meaning the company has an above-average debt-to-equity ratio. It has more debt than 97% of its competitors. Liquidity is also on the riskier side with a rank of 47, meaning the company generates less profit to service its debt than 53% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 51 (better than 51% compared with alternatives), Towa Pharmaceutical has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Towa Pharmaceutical are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Towa Pharmaceutical 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 | 8 |
|
10 |
|
1 |
|
3 |
|
| REFINANCING | ||||||||
| REFINANCING | 96 |
|
87 |
|
99 |
|
100 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 33 |
|
70 |
|
32 |
|
47 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 46 |
|
63 |
|
37 |
|
51 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
46 |
|
63 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
79 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
53 |
|
48 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
28 |
|
11 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
37 |
|
45 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Towa Pharmaceutical from November 14, 2024.
Obermatt Portfolio Performance
We’re so convinced about our free research, that we buy our stock tips.
See the performance of the Obermatt portfolio.