Fact based stock research
Yokogawa Electric (TSE:6841)

JP3955000009

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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:
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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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Yokogawa Electric stock research in summary

yokogawa.co.jp

ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Yokogawa Electric (Electronic Equipment, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Yokogawa Electric are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives) and show below-average growth (Growth Rank of 31) but are safely financed (Safety Rank of 84), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Yokogawa Electric's financial characteristics. As the company Yokogawa Electric's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 38) and low growth (Obermatt Growth Rank of 31), 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 84) 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	38
Growth Rank	31
Safety Rank	84
Combined Rank	55

Country	Japan
Industry	Electronic Equipment
Index	Water Tech, Nikkei 225
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: Yokogawa Electric

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	43	52	38
GROWTH
GROWTH	8	39	67	31
SAFETY
SAFETY	100	72	65	84
SENTIMENT
SENTIMENT	n/a	17	57	^new
360° VIEW
360° VIEW	n/a	33	75	^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 Yokogawa Electric is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	43	52	38
GROWTH
GROWTH	8	39	67	31
SAFETY
SAFETY	100	72	65	84
COMBINED
COMBINED	76	56	76	55

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 38 (worse than 62% compared with alternatives), Yokogawa Electric 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 Yokogawa Electric. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 51, which means that the stock price compared with what market professionals expect for future profits is lower than for 51% of comparable companies, indicating a good value concerning Yokogawa Electric's profit levels. But Price-to-Sales is 48 which means that the stock price compared with what market professionals expect for future profits is higher than for 52% of comparable companies, indicating a low value concerning Yokogawa Electric'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 47 and for dividend yield, which is lower than for 68% 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 38, is a hold recommendation based on Yokogawa Electric'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 Yokogawa Electric 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)	81	60	59	48
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	56	22	72	51
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	71	67	64	47
DIVIDEND YIELD
DIVIDEND YIELD	84	26	29	32
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	82	43	52	38

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), Yokogawa Electric 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 Yokogawa Electric. Capital Growth has a rank of 51, which means that currently professionals expect the company to grow its invested capital more than 14% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has only a rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors, and Profit Growth is also low at a rank of 14. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 31, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Yokogawa Electric, investors may want to look at value and sentiment indicators for a well-rounded picture of this 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 mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	8	38	1	18
PROFIT GROWTH
PROFIT GROWTH	19	14	93	14
CAPITAL GROWTH
CAPITAL GROWTH	n/a	100	62	51
STOCK RETURNS
STOCK RETURNS	54	21	55	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	8	39	67	31

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 84 (better than 84% compared with alternatives) for 2024, the company Yokogawa Electric has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Yokogawa Electric 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 Yokogawa Electric. Leverage is at 84, meaning the company has a below-average debt-to-equity ratio. It has less debt than 84% of its competitors. Refinancing is at a rank of 63, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Finally, Liquidity is also good at a rank of 72, which means that the company generates more profit to service its debt than 72% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 84 (better than 84% compared with alternatives), Yokogawa Electric 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 Yokogawa Electric 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	76	70	69	84
REFINANCING
REFINANCING	88	67	62	63
LIQUIDITY
LIQUIDITY	100	60	55	72
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	72	65	84

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Yokogawa Electric 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	24	27	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	89	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	38	89	^new
MARKET PULSE
MARKET PULSE	n/a	10	18	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	17	57	^new

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