Fact based stock research
Toyo Suisan Kaisha (TSE:2875)

JP3613000003

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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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Toyo Suisan Kaisha stock research in summary

maruchan.co.jp

ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Toyo Suisan Kaisha (Packaged Foods & Meats, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Toyo Suisan Kaisha are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives) and show below-average growth (Growth Rank of 27) but are safely financed (Safety Rank of 97), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Toyo Suisan Kaisha's financial characteristics. As the company Toyo Suisan Kaisha's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 25) and low growth (Obermatt Growth Rank of 27), 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. In this case, good financing practices (Obermatt Safety Rank of 97) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for 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	25
Growth Rank	27
Safety Rank	97
Combined Rank	49

Country	Japan
Industry	Packaged Foods & Meats
Index
Size class	Large

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: Toyo Suisan Kaisha

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	33	32	25
GROWTH
GROWTH	20	63	97	27
SAFETY
SAFETY	100	95	99	97
SENTIMENT
SENTIMENT	n/a	53	72	^new
360° VIEW
360° VIEW	n/a	83	96	^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 Toyo Suisan Kaisha is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	33	32	25
GROWTH
GROWTH	20	63	97	27
SAFETY
SAFETY	100	95	99	97
COMBINED
COMBINED	83	93	92	49

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Toyo Suisan Kaisha shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Toyo Suisan Kaisha. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 57, which means that the stock price compared with what market professionals expect for future profits is lower than for 57% of comparable companies, indicating a good value concerning Toyo Suisan Kaisha's profit levels. But Price-to-Sales is 17 which means that the stock price compared with what market professionals expect for future profits is higher than for 83% of comparable companies, indicating a low value concerning Toyo Suisan Kaisha's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 23 and for dividend yield, which is lower than for 56% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Toyo Suisan Kaisha's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Toyo Suisan Kaisha is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. 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)	63	31	21	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	78	40	52	57
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	52	34	23
DIVIDEND YIELD
DIVIDEND YIELD	62	50	36	44
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	88	33	32	25

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), Toyo Suisan Kaisha 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 Toyo Suisan Kaisha. Profit Growth has a rank of 53, which means that currently professionals expect the company to grow its profits more than 53% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 65 (above 65% of alternative investments). But Sales Growth has a below the median rank of 45, which means that, currently, professionals expect the company to grow less than 55% of its competitors, and Capital Growth also has a lower rank of 5. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold 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 Toyo Suisan Kaisha. 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	12	82	33	45
PROFIT GROWTH
PROFIT GROWTH	23	22	77	53
CAPITAL GROWTH
CAPITAL GROWTH	n/a	64	95	5
STOCK RETURNS
STOCK RETURNS	32	41	97	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	20	63	97	27

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 97 (better than 97% compared with alternatives) for 2024, the company Toyo Suisan Kaisha has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Toyo Suisan Kaisha 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, where all three are above average for Toyo Suisan Kaisha. Leverage is at 98, meaning the company has a below-average debt-to-equity ratio. It has less debt than 98% of its competitors. Refinancing is at a rank of 57, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 57% of its competitors. Finally, Liquidity is also good at a rank of 97, which means that the company generates more profit to service its debt than 97% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 97 (better than 97% compared with alternatives), Toyo Suisan Kaisha has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Toyo Suisan Kaisha but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	100	98	98	98
REFINANCING
REFINANCING	40	77	69	57
LIQUIDITY
LIQUIDITY	100	89	95	97
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	95	99	97

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Toyo Suisan Kaisha 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	85	67	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	87	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	9	73	^new
MARKET PULSE
MARKET PULSE	n/a	59	44	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	53	72	^new

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