Fact based stock research
Meritz Securities (KOSE:A008560)

KR7008560005

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.

Meritz Securities stock research in summary

home.imeritz.com

ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Meritz Securities (Investment Banking & Brokerage, South Korea) shares have much better financial characteristics than comparable stocks. Shares of Meritz Securities are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives). But they show above-average growth (Growth Rank of 59) and are safely financed (Safety Rank of 81, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Meritz Securities's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Meritz Securities exhibits low value (Obermatt Value Rank of 47), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 59). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 81) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	47
Growth Rank	59
Safety Rank	81
Combined Rank	89

Country	South Korea
Industry	Investment Banking & Brokerage
Index	KOSPI
Size class	XX-Large

This stock has achievements: Top 10 Stock.

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

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.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: Meritz Securities

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	41	47	47
GROWTH
GROWTH	61	65	83	59
SAFETY
SAFETY	100	60	81	81
SENTIMENT
SENTIMENT	n/a	49	96	^new
360° VIEW
360° VIEW	n/a	67	88	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Meritz Securities is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	41	47	47
GROWTH
GROWTH	61	65	83	59
SAFETY
SAFETY	100	60	81	81
COMBINED
COMBINED	100	60	89	89

Last update of combined financial performance: 4-May-2023. Stock analysis on combined financial performance: The higher the rank of Meritz Securities the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 47 (worse than 53% compared with alternatives), Meritz Securities shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Meritz Securities. Price-to-Profit (also referred to as price-earnings, P/E) is 64 which means that the stock price compared with what market professionals expect for future profits is lower than for 64% of comparable companies, indicating a good value concerning Meritz Securities'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 59, which means that the stock price is lower as regards to invested capital than for 59% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 55% of alternatives (only 45% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 69% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 47, is a hold recommendation based on Meritz Securities's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. 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 especially important 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)	100	34	45	45
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	98	67	64	64
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	94	60	59	59
DIVIDEND YIELD
DIVIDEND YIELD	86	18	29	31
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	98	41	47	47

Last update of Value Rank: 4-May-2023. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Meritz Securities; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), Meritz Securities shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Meritz Securities. Sales Growth has a value of 100 which means that currently professionals expect the company to grow more than 100% of its competitors. Profit Growth with a value of 65 and Capital Growth with a rank of 73 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 16, which means that stock returns have recently been below 84% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. Meritz Securities has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Meritz Securities, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. 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. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	71	8	75	100
PROFIT GROWTH
PROFIT GROWTH	44	65	65	65
CAPITAL GROWTH
CAPITAL GROWTH	n/a	70	72	73
STOCK RETURNS
STOCK RETURNS	82	95	43	16
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61	65	83	59

Last update of Growth Rank: 28-Mar-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Meritz Securities.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 81 (better than 81% compared with alternatives) for 2023, the company Meritz Securities has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Meritz Securities 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 Meritz Securities. Refinancing is at 89, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 89% of its competitors. Liquidity is also good at 74, meaning the company generates more profit to service its debt than 74% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 24, which means the company has an above-average debt-to-equity ratio. It has more debt than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 81 (better than 81% compared with alternatives), Meritz Securities 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 Meritz Securities 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. In the long-term, investors may have a debt challenge with Meritz Securities and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	86	20	23	24
REFINANCING
REFINANCING	94	79	87	89
LIQUIDITY
LIQUIDITY	39	61	72	74
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	60	81	81

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Meritz Securities 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	32	86	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	89	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	98	96	^new
MARKET PULSE
MARKET PULSE	n/a	4	11	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	49	96	^new

Last update of Sentiment Rank: 13-Apr-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Meritz Securities.
Upgrade to a Premium Account to access the latest ranks.