September 28, 2023
Top 10 Stock Dowa Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Dowa Buy

360 METRICS	September 28, 2023
VALUE
VALUE	60
GROWTH
GROWTH	25
SAFETY
SAFETY	82
SENTIMENT
SENTIMENT	55
360° VIEW
360° VIEW	52

ANALYSIS: With an Obermatt 360° View of 52 (better than 52% compared with alternatives), overall professional sentiment and financial characteristics for the stock Dowa are above average. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for Dowa. The consolidated Value Rank has an attractive rank of 60, which means that the share price of Dowa is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 60% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 82. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 55. But the consolidated Growth Rank has a low rank of 25, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 75 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 52, Dowa is better positioned than 52% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 60), secure financing practices (Safety Rank of 82), and positive market sentiment in the professional investor community (Sentiment Rank of 55). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 25), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of Dowa is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Dowa positive

SENTIMENT METRICS	September 28, 2023
ANALYST OPINION
ANALYST OPINION	5
OPINIONS CHANGE
OPINIONS CHANGE	93
PRO HOLDINGS
PRO HOLDINGS	39
MARKET PULSE
MARKET PULSE	68
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	55

ANALYSIS: With an Obermatt Sentiment Rank of 55 (better than 55% compared with alternatives), overall professional sentiment and engagement for the stock Dowa is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and above average for Dowa. Analyst Opinions are at a rank of 5 (worse than 95% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 93 which means that stock research experts are changing their opinions for the better. In other words, they are getting more optimistic of stock investments in Dowa. Market Pulse is also positive with a rank of 68, which means that the current professional news and professional social networks are positive in their discussions about this company (more positive news than for 68% of competitors). Only professional investors tend to be absent with a Professional Investors rank of 39, which means that professional investors hold less stock in this company than in 61% of alternative investment opportunities. Pros tend to invest in other companies. But that could also be due to the size of the company. Professional investors tend to invest in XL and XXL companies. If the company is smaller than that, that fact alone may explain why there are fewer pros present. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 55 (more positive than 55% compared with investment alternatives), Dowa has a reputation among professional investors that is above-average compared with that of its competitors. Since analysts are getting more optimistic and the professional communication channels are positive, it may be an indication of a company that has the difficult times behind it or the stocks’ value is improving. For medium to smaller companies, the positive sentiment indicators outshine the negative. ...read more

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Value Strategy: Dowa Stock Price Value better than average

VALUE METRICS	September 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	72
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	38
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	69
DIVIDEND YIELD
DIVIDEND YIELD	42
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	60

ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Dowa shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Dowa. Price-to-Sales (P/S) is 72, which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value concerning Dowa's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 69% of alternatives (31% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 42 are lower than average (dividends are expected to be lower than 58% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 38, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Dowa's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Dowa may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). ...read more

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Growth Strategy: Dowa Growth Momentum low

GROWTH METRICS	September 28, 2023
REVENUE GROWTH
REVENUE GROWTH	34
PROFIT GROWTH
PROFIT GROWTH	31
CAPITAL GROWTH
CAPITAL GROWTH	43
STOCK RETURNS
STOCK RETURNS	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	25

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Dowa 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 all four metrics below average for Dowa. Sales Growth has a rank of 34, which means that currently professionals expect the company to grow less than 66% of its competitors. The same is valid for Profit Growth, with a rank of 31, and Capital Growth with 43. In addition, Stock Returns have a below market rank of 31, which means that the stock returns have recently been below 69% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. ...read more

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Safety Strategy: Dowa Debt Financing Safety very solid

SAFETY METRICS	September 28, 2023
LEVERAGE
LEVERAGE	46
REFINANCING
REFINANCING	77
LIQUIDITY
LIQUIDITY	86
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	82

ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2023, the company Dowa has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Dowa 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, with two out of three indicators above-average for Dowa. Refinancing is at 77, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 77% of its competitors. Liquidity is also good at 86, meaning the company generates more profit to service its debt than 86% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 46, which means the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), Dowa has a financing structure that is significantly safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Dowa could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. ...read more

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Combined financial peformance: Dowa Above-Average Financial Performance

COMBINED PERFORMANCE	September 28, 2023
VALUE
VALUE	60
GROWTH
GROWTH	25
SAFETY
SAFETY	86
COMBINED
COMBINED	59

ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), Dowa (Diversified Metals & Mining, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Dowa are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives), are safely financed (Safety Rank of 82, which means low debt burdens), but show below-average growth (Growth Rank of 25). ...read more

RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on Dowa's financial characteristics. As the company Dowa's key financial metrics exhibit good value (Obermatt Value Rank of 60) but low growth (Obermatt Growth Rank of 25) while being safely financed (Obermatt Safety Rank of 82), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 60% 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. ...read more

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