Fact based stock research
Toyo Tire (TSE:5105)

JP3610600003

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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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Toyo Tire stock research in summary

toyotires.co.jp

ANALYSIS: With an Obermatt Combined Rank of 79 (better than 79% compared with investment alternatives), Toyo Tire (Tires & Rubber, Japan) shares have much better financial characteristics than comparable stocks. Shares of Toyo Tire are a good value (attractively priced) with a consolidated Value Rank of 95 (better than 95% of alternatives), are safely financed (Safety Rank of 81, which means low debt burdens), but show below-average growth (Growth Rank of 11). ...read more

RECOMMENDATION: A Combined Rank of 79, is a strong buy recommendation based on Toyo Tire's financial characteristics. As the company Toyo Tire's key financial metrics exhibit good value (Obermatt Value Rank of 95) but low growth (Obermatt Growth Rank of 11) while being safely financed (Obermatt Safety Rank of 81), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 95% 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	95
Growth Rank	11
Safety Rank	81
Combined Rank	79

Country	Japan
Industry	Tires & Rubber
Index
Size class	X-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 Tire

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	91	83	95
GROWTH
GROWTH	63	59	65	11
SAFETY
SAFETY	47	45	47	81
SENTIMENT
SENTIMENT	n/a	15	74	^new
360° VIEW
360° VIEW	n/a	57	86	^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 Tire is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	91	83	95
GROWTH
GROWTH	63	59	65	11
SAFETY
SAFETY	47	45	47	81
COMBINED
COMBINED	83	81	73	79

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 95 (better than 95% compared with alternatives) for 2024, Toyo Tire shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Toyo Tire. Price-to-Sales is 54 which means that the stock price compared with what market professionals expect for future sales is lower than for 54% of comparable companies, indicating a good value for Toyo Tire's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 95% 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 67. Compared with other companies in the same industry, dividend yields of Toyo Tire are expected to be higher than for 96% of all competitors (a Dividend Yield rank of 96). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 95, is a buy recommendation based on Toyo Tire'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 Toyo Tire 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)	79	60	56	54
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	98	100	97	95
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	82	62	56	67
DIVIDEND YIELD
DIVIDEND YIELD	71	94	74	96
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	93	91	83	95

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 11 (better than 11% compared with alternatives), Toyo Tire 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 Toyo Tire. Only Capital Growth has a good rank of 51, which means that currently professionals expect the company to grow its invested capital more than 15% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 15 which means that currently professionals expect the company to grow less than 85% of its competitors. Profit Growth with a rank of 15 and Stock Returns with a rank of 47 are also low (below 53% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 11, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Toyo Tire is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	36	49	35	15
PROFIT GROWTH
PROFIT GROWTH	50	90	46	15
CAPITAL GROWTH
CAPITAL GROWTH	n/a	25	52	51
STOCK RETURNS
STOCK RETURNS	69	53	93	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	63	59	65	11

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 Tire.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 81 (better than 81% compared with alternatives) for 2024, the company Toyo Tire has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Toyo Tire 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 Tire. Leverage is at 58, meaning the company has a below-average debt-to-equity ratio. It has less debt than 58% of its competitors. Refinancing is at a rank of 67, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Finally, Liquidity is also good at a rank of 85, which means that the company generates more profit to service its debt than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 81 (better than 81% compared with alternatives), Toyo Tire 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 Tire 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	18	40	44	58
REFINANCING
REFINANCING	86	43	47	67
LIQUIDITY
LIQUIDITY	50	59	67	85
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	47	45	47	81

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Toyo Tire 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	73	56	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	95	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	17	100	^new
MARKET PULSE
MARKET PULSE	n/a	38	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	15	74	^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 Tire.
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