May 11, 2023
Top 10 Stock Furukawa Strong Buy Recommendation
How to read the ranks
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.
Snapshot: Furukawa – Top 10 Stock in Silver Mining and Production
Furukawa is listed as a top 10 stock on May 11, 2023 in the market index Silver because of its high performance in at least one of the Obermatt investment strategies. While half the consolidated Obermatt Ranks are above-average, investor sentiment is negative and growth performance is below market average, both a sign for caution. Based on the Obermatt 360° Rank of 87 (top 87% performer), Obermatt assesses an overall strong buy recommendation for Furukawa on May 11, 2023.
Snapshot: Obermatt Ranks
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
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° Assessment Furukawa Strong Buy
| 360 METRICS | May 11, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 100 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 39 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 68 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 19 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 87 |
|
||||||
ANALYSIS: With an Obermatt 360° Rank of 87 (better than 87% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Furukawa are very positive. The 360° Rank is based on consolidating four consolidated indicators, with half the metrics below and half above average for Furukawa. The consolidated Value Rank has an attractive rank of 100, which means that the share price of Furukawa 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 100% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 68. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of 19. Professional investors are more confident in 81% other stocks. The consolidated Growth Rank also has a low rank of 39, which means that the company is below average in terms of growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. 61 of its competitors have better growth. ...read more
RECOMMENDATION: With a 360° Rank of 87, Furukawa is better than 87% of all alternative stock investment opportunities based on the Obermatt Method. The picture is mixed here. The stock seems to be a good value (Value Rank of 100), and the financing structure is on the safer side (Safety Rank of 68). However, sentiment in the professional investor community is below-average (Sentiment Rank of 19), as is the growth momentum for the company (Growth Rank of 39). While everybody wants to buy at low stock prices (good value), professionals’ skepticism may mean that the low price is justified. Even though the financing structure is not as important as Value, Growth, and Sentiment, investors should still be careful with this decision and conduct further research if they are serious about investing in this company. ...read more
Sentiment Strategy: Professional Market Sentiment for Furukawa negative
ANALYSIS: With an Obermatt Sentiment Rank of 19 (better than 19% compared with alternatives), overall professional sentiment and engagement for the stock Furukawa is critical, mostly below average.
RECOMMENDATION: With an Obermatt Sentiment Rank of 19 (less encouraging than 81% compared with investment alternatives), Furukawa has a reputation among professional investors that is far below that of its competitors.
Value Strategy: Furukawa Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 100 (better than 100% compared with alternatives) for 2023, Furukawa shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Furukawa. Price-to-Sales has a value of 96 which means that the stock price compared with what market professionals expect for future sales is lower than 96% of comparable companies, indicating a good value for Furukawa's revenue size. The same is valid for expected Price-to-Profits, more favorable than 95% of alternatives, and it is also true for the Price-to-Book capital (also referred to as market-to-book ratio) with an Obermatt Price-to-Capital Rank of 98. Compared with other companies in the same industry, dividend yields of Furukawa are expected to be higher than 85% of all competitors (an Obermatt Dividend Yield rank of 85). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 100, is a strong buy recommendation based on Furukawa'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 Furukawa based on its detailed value metrics.
Growth Strategy: Furukawa Growth Momentum low
ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Furukawa 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 three out of four indicators below-average for Furukawa. While Sales Growth ranks at 89, professionals currently expect the company to grow more than 89% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 26, which means that, currently, professionals expect the company to grow its profits less than 74% of its competitors, and Capital Growth has a rank of 35. Historic stock returns were also below average with a current Stock Returns rank of 33 which means that the stock returns have recently been below 67% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a HOLD recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. ...read more
Safety Strategy: Furukawa Debt Financing Safety above-average
| SAFETY METRICS | May 11, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 29 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 89 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 44 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 68 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 68 (better than 68% compared with alternatives), the company Furukawa has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Furukawa 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 just one indicator above average for Furukawa and the other two below average. Refinancing is at 89, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 89% of its competitors. But Leverage is high with a rank of 29, meaning the company has an above-average debt-to-equity ratio. It has more debt than 71% of its competitors. Liquidity is also on the riskier side with a rank of 44, meaning the company generates less profit to service its debt than 56% of its competitors. ...read more
RECOMMENDATION: With an Obermatt Safety Rank of 68 (better than 68% compared with alternatives), Furukawa has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Furukawa are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making a financial decision. ...read more
Combined financial peformance: Furukawa Top Financial Performance
| COMBINED PERFORMANCE | May 11, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 100 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 39 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 44 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 88 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 88 (better than 88% compared with investment alternatives), Furukawa (Industrial Machinery, Japan) shares have much better financial characteristics than comparable stocks. Shares of Furukawa are a good value (attractively priced) with a consolidated Obermatt Value Rank of 100 (better than 100% of alternatives), are safely financed (Safety Rank of 68, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more
RECOMMENDATION: An Obermatt Combined Rank of 88, is a strong buy recommendation based on Furukawa's financial characteristics. As the company Furukawa's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 68), it may be a safer investment because companies with low debt can better withstand times of crises. The good value, better than 100% 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
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.