May 25, 2023
Top 10 Stock Mitsui Mining & Smelting 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: Mitsui Mining & Smelting – Top 10 Stock in Copper Mining and Production
Mitsui Mining & Smelting is listed as a top 10 stock on May 25, 2023 in the market index Copper because of its high performance in at least one of the Obermatt investment strategies. As three out of four consolidated Obermatt Ranks exhibit excellent performance, it is a solid investment where the risk of paying too much for the shares is low. Based on the Obermatt 360° View of 88 (top 88% performer), Obermatt assesses an overall strong buy recommendation for Mitsui Mining & Smelting on May 25, 2023.
Snapshot: Obermatt Ranks
| Country | Japan |
| Industry | Diversified Metals & Mining |
| Index | Low Emissions, Copper, Zinc, Silver, Nikkei 225 |
| Size class | X-Large |
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 Mitsui Mining & Smelting Strong Buy
| 360 METRICS | May 25, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 90 |
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| GROWTH | ||||||||
| GROWTH | 89 |
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| SAFETY | ||||||||
| SAFETY | 38 |
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| SENTIMENT | ||||||||
| SENTIMENT | 55 |
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| 360° VIEW | ||||||||
| 360° VIEW | 88 |
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ANALYSIS: With an Obermatt 360° View of 88 (better than 88% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Mitsui Mining & Smelting are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Mitsui Mining & Smelting. The consolidated Value Rank has an attractive rank of 90, which means that the share price of Mitsui Mining & Smelting 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 90% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 89, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 55. But the company’s financing is risky with a Safety rank of 38. This means 62% of comparable companies have a safer financing structure than Mitsui Mining & Smelting. ...read more
RECOMMENDATION: With a 360° View of 88, Mitsui Mining & Smelting is better than 88% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 90), above-average growth (Growth Rank of 89), 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, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 38), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Mitsui Mining & Smelting is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more
Sentiment Strategy: Professional Market Sentiment for Mitsui Mining & Smelting positive
ANALYSIS: With an Obermatt Sentiment Rank of 55 (better than 55% compared with alternatives), overall professional sentiment and engagement for the stock Mitsui Mining & Smelting is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half the indicators below and the other half above average for Mitsui Mining & Smelting. Analyst Opinions are at a rank of 44 (worse than 56% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. Worse, Analyst Opinions Change has a rank of 43, which means that stock research experts are getting more pessimistic. It doesn't end with the analysts. Market Pulse is also low with a rank of 16, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 84% of competitors). On the upside, the Professional Investors rank is 96, which means that professional investors hold more stock in this company than in 96% of alternative investment opportunities. Pros tend to favor investing in this company. This could be due to a large company size, which could contribute to the higher share of professional investors in the company. If this is not the case, the low sentiment ranks are more challenging to explain. ...read more
RECOMMENDATION: With an Obermatt Sentiment Rank of 55 (more positive than 55% compared with investment alternatives), Mitsui Mining & Smelting has a reputation among professional investors that is above-average compared with that of its competitors. Should the company be on the smaller side, the presence of professional investors could be reassuring. That would make Mitsui Mining & Smelting stock something like a hidden gem. Investors should make sure with further research that this is true, because all other sentiment indicators are negative which is a sign for caution. ...read more
Value Strategy: Mitsui Mining & Smelting Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 90 (better than 90% compared with alternatives) for 2023, Mitsui Mining & Smelting shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Mitsui Mining & Smelting. Price-to-Sales has a value of 91 which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value for Mitsui Mining & Smelting's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 79% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 76. Compared with other companies in the same industry, dividend yields of Mitsui Mining & Smelting are expected to be higher than for 79% of all competitors (a Dividend Yield rank of 79). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 90, is a strong buy recommendation based on Mitsui Mining & Smelting'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 Mitsui Mining & Smelting based on its detailed value metrics.
Growth Strategy: Mitsui Mining & Smelting Growth Momentum high
ANALYSIS: With an Obermatt Growth Rank of 89 (better than 89% compared with alternatives) for 2023, Mitsui Mining & Smelting shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Mitsui Mining & Smelting. Sales Growth has a value of 57 which means that currently professionals expect the company to grow more than 57% of its competitors. Profit Growth with a value of 91 and Capital Growth with a rank of 63 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 49, which means that stock returns have recently been below 51% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 89, is a BUY recommendation for growth and momentum investors. Mitsui Mining & Smelting 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 Mitsui Mining & Smelting, 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. ...read more
Safety Strategy: Mitsui Mining & Smelting Debt Financing Safety below-average
| SAFETY METRICS | May 25, 2023 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 19 |
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| REFINANCING | ||||||||
| REFINANCING | 89 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 27 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 38 |
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ANALYSIS: With an Obermatt Safety Rank of 38 (better than 38% compared with alternatives), the company Mitsui Mining & Smelting has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Mitsui Mining & Smelting is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Mitsui Mining & Smelting 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 19, meaning the company has an above-average debt-to-equity ratio. It has more debt than 81% of its competitors. Liquidity is also on the riskier side with a rank of 27, meaning the company generates less profit to service its debt than 73% of its competitors. ...read more
RECOMMENDATION: With an Obermatt Safety Rank of 38 (worse than 62% compared with alternatives), Mitsui Mining & Smelting has a financing structure that is riskier 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 Mitsui Mining & Smelting 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: Mitsui Mining & Smelting Top Financial Performance
| COMBINED PERFORMANCE | May 25, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 90 |
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| GROWTH | ||||||||
| GROWTH | 89 |
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| SAFETY | ||||||||
| SAFETY | 27 |
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| COMBINED | ||||||||
| COMBINED | 94 |
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ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Mitsui Mining & Smelting (Diversified Metals & Mining, Japan) shares have much better financial characteristics than comparable stocks. Shares of Mitsui Mining & Smelting are a good value (attractively priced) with a consolidated Obermatt Value Rank of 90 (better than 90% of alternatives), show above-average growth (Growth Rank of 89) but are riskily financed (Safety Rank of 38), which means above-average debt burdens. ...read more
RECOMMENDATION: An Obermatt Combined Rank of 94, is a strong buy recommendation based on Mitsui Mining & Smelting's financial characteristics. As the company Mitsui Mining & Smelting's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 90) and above-average growth (Obermatt Growth Rank of 89), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 38) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more
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