Fact based stock research
Yamato Kogyo (TSE:5444)

JP3940400009

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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.

Yamato Kogyo stock research in summary

yamatokogyo.co.jp

ANALYSIS: With an Obermatt Combined Rank of 77 (better than 77% compared with investment alternatives), Yamato Kogyo (Steel, Japan) shares have much better financial characteristics than comparable stocks. Shares of Yamato Kogyo are a good value (attractively priced) with a consolidated Value Rank of 57 (better than 57% of alternatives), are safely financed (Safety Rank of 98, which means low debt burdens), but show below-average growth (Growth Rank of 47). ...read more

RECOMMENDATION: A Combined Rank of 77, is a strong buy recommendation based on Yamato Kogyo's financial characteristics. As the company Yamato Kogyo's key financial metrics exhibit good value (Obermatt Value Rank of 57) but low growth (Obermatt Growth Rank of 47) while being safely financed (Obermatt Safety Rank of 98), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 57% 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	57
Growth Rank	47
Safety Rank	98
Combined Rank	77

Country	Japan
Industry	Steel
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: Yamato Kogyo

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	64	65	68	57
GROWTH
GROWTH	3	89	93	47
SAFETY
SAFETY	100	100	98	98
SENTIMENT
SENTIMENT	n/a	37	90	^new
360° VIEW
360° VIEW	n/a	99	100	^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 Yamato Kogyo is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	64	65	68	57
GROWTH
GROWTH	3	89	93	47
SAFETY
SAFETY	100	100	98	98
COMBINED
COMBINED	59	100	98	77

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 57 (better than 57% compared with alternatives), Yamato Kogyo 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 Yamato Kogyo. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 74 which means that the stock price compared with what market professionals expect for future profits is lower than for 74% of comparable companies, indicating a good value concerning Yamato Kogyo'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 58, 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 88% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 12). 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 57, is a buy recommendation based on Yamato Kogyo'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 Yamato Kogyo 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 Yamato Kogyo 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)	35	32	20	12
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53	64	82	74
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	90	74	63	58
DIVIDEND YIELD
DIVIDEND YIELD	72	73	77	77
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	64	65	68	57

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 47 (better than 47% compared with alternatives), Yamato Kogyo 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 Yamato Kogyo. Sales Growth has a rank of 74 which means that currently professionals expect the company to grow more than 74% of its competitors. Stock Returns are also above average with a rank of 65. But Capital Growth has only a rank of 25, which means that currently professionals expect the company to grow its invested capital less than 75% of its competitors. Profit Growth is also low, with a rank of only 29, 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 47, 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 65% 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	3	76	78	74
PROFIT GROWTH
PROFIT GROWTH	60	87	51	29
CAPITAL GROWTH
CAPITAL GROWTH	n/a	59	71	25
STOCK RETURNS
STOCK RETURNS	30	69	87	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	3	89	93	47

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 98 (better than 98% compared with alternatives) for 2024, the company Yamato Kogyo has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Yamato Kogyo 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 Yamato Kogyo. Leverage is at 94, meaning the company has a below-average debt-to-equity ratio. It has less debt than 94% of its competitors. Refinancing is at a rank of 71, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 71% of its competitors. Finally, Liquidity is also good at a rank of 96, which means that the company generates more profit to service its debt than 96% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 98 (better than 98% compared with alternatives), Yamato Kogyo 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 Yamato Kogyo 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	92	96	96	94
REFINANCING
REFINANCING	74	73	69	71
LIQUIDITY
LIQUIDITY	98	90	94	96
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	100	98	98

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Yamato Kogyo 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	60	79	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	79	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	25	96	^new
MARKET PULSE
MARKET PULSE	n/a	38	29	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	37	90	^new

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