Fact based stock research
USS (TSE:4732)

JP3944130008

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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.

(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.

USS stock research in summary

ussnet.co.jp

ANALYSIS: With an Obermatt Combined Rank of 40 (worse than 60% compared with investment alternatives), USS (Automotive Retail, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of USS are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), are safely financed (Safety Rank of 92, which means low debt burdens), but show below-average growth (Growth Rank of 7). ...read more

RECOMMENDATION: A Combined Rank of 40, is a hold recommendation based on USS's financial characteristics. As the company USS's key financial metrics exhibit good value (Obermatt Value Rank of 51) but low growth (Obermatt Growth Rank of 7) while being safely financed (Obermatt Safety Rank of 92), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 51% 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	51
Growth Rank	7
Safety Rank	92
Combined Rank	40

Country	Japan
Industry	Automotive Retail
Index
Size class	Medium

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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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.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: USS

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	65	42	51
GROWTH
GROWTH	59	57	35	7
SAFETY
SAFETY	79	87	89	92
SENTIMENT
SENTIMENT	n/a	68	46	^new
360° VIEW
360° VIEW	n/a	96	51	^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 USS is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	65	42	51
GROWTH
GROWTH	59	57	35	7
SAFETY
SAFETY	79	87	89	92
COMBINED
COMBINED	79	87	53	40

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), USS 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 USS. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 67 which means that the stock price compared with what market professionals expect for future profits is lower than for 67% of comparable companies, indicating a good value concerning USS's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 51, and for Dividend Yield with a Dividend Yield Rank of 77. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 89% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 11). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on USS's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that USS has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing USS shares. 9. 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)	23	27	5	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	37	71	57	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	62	70	49	51
DIVIDEND YIELD
DIVIDEND YIELD	88	77	72	77
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	60	65	42	51

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 7 (better than 7% compared with alternatives), USS 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 USS. Only Capital Growth has a good rank of 52, which means that currently professionals expect the company to grow its invested capital more than 27% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 17 which means that currently professionals expect the company to grow less than 83% of its competitors. Profit Growth with a rank of 27 and Stock Returns with a rank of 29 are also low (below 71% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 7, 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 USS 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	44	10	8	17
PROFIT GROWTH
PROFIT GROWTH	10	100	27	27
CAPITAL GROWTH
CAPITAL GROWTH	n/a	25	87	52
STOCK RETURNS
STOCK RETURNS	48	59	77	29
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	59	57	35	7

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 92 (better than 92% compared with alternatives) for 2024, the company USS has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of USS 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 USS. Leverage is at 91, meaning the company has a below-average debt-to-equity ratio. It has less debt than 91% of its competitors. Refinancing is at a rank of 54, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 54% of its competitors. Finally, Liquidity is also good at a rank of 100, which means that the company generates more profit to service its debt than 100% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 92 (better than 92% compared with alternatives), USS 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 USS 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	88	83	89	91
REFINANCING
REFINANCING	14	52	44	54
LIQUIDITY
LIQUIDITY	100	96	100	100
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	79	87	89	92

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of USS 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	13	16	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	96	98	^new
MARKET PULSE
MARKET PULSE	n/a	60	17	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	68	46	^new

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