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Nishi-Nippon Financial Holdings (TSE:7189)

JP3658850007

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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:
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).

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Nishi-Nippon Financial Holdings stock research in summary

nnfh.co.jp

ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Nishi-Nippon Financial Holdings (Regional Banks, Japan) shares have much better financial characteristics than comparable stocks. Shares of Nishi-Nippon Financial Holdings are a good value (attractively priced) with a consolidated Value Rank of 78 (better than 78% of alternatives), show above-average growth (Growth Rank of 54), and are safely financed (Safety Rank of 82), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Nishi-Nippon Financial Holdings's financial characteristics. As the company Nishi-Nippon Financial Holdings's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 78), above-average growth (Obermatt Growth Rank of 54), and indicate that the company is safely financed (Obermatt Safety Rank of 82), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Nishi-Nippon Financial Holdings. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	78
Growth Rank	54
Safety Rank	82
Combined Rank	89

Country	Japan
Industry	Regional Banks
Index
Size class	XX-Large

18-Apr-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: Nishi-Nippon Financial Holdings

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	97	90	78
GROWTH
GROWTH	20	34	55	54
SAFETY
SAFETY	100	92	70	82
SENTIMENT
SENTIMENT	n/a	44	28	^new
360° VIEW
360° VIEW	n/a	89	74	^new

Most recent update of the stock research: 18-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 Nishi-Nippon Financial Holdings is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	97	90	78
GROWTH
GROWTH	20	34	55	54
SAFETY
SAFETY	100	92	70	82
COMBINED
COMBINED	85	96	90	89

Last update of combined financial performance: 18-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Nishi-Nippon Financial Holdings the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 78 (better than 78% compared with alternatives) for 2024, Nishi-Nippon Financial Holdings shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Nishi-Nippon Financial Holdings. Price-to-Sales (P/S) is 63, which means that the stock price compared with what market professionals expect for future sales is lower than for 63% of comparable companies, indicating a good value regarding Nishi-Nippon Financial Holdings's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 79% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 87. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 28% of all competitors have even lower dividend yields than Nishi-Nippon Financial Holdings (a Dividend Yield Rank of 28). 72% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 78, is a buy recommendation based on Nishi-Nippon Financial Holdings's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	98	94	92	63
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	70	100	86	79
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	96	88	87
DIVIDEND YIELD
DIVIDEND YIELD	50	48	30	28
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	83	97	90	78

Last update of Value Rank: 18-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Nishi-Nippon Financial Holdings; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 54 (better than 54% compared with alternatives), Nishi-Nippon Financial Holdings 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 half of the indicators below and half above average for Nishi-Nippon Financial Holdings. Profit Growth has a rank of 54, which means that currently professionals expect the company to grow its profits more than 54% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 83 (above 83% of alternative investments). But Sales Growth has a below the median rank of 30, which means that, currently, professionals expect the company to grow less than 70% of its competitors, and Capital Growth also has a lower rank of 47. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 54, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Nishi-Nippon Financial Holdings. 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	20	12	25	30
PROFIT GROWTH
PROFIT GROWTH	1	78	23	54
CAPITAL GROWTH
CAPITAL GROWTH	n/a	37	59	47
STOCK RETURNS
STOCK RETURNS	28	49	99	83
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	20	34	55	54

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Nishi-Nippon Financial Holdings.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2024, the company Nishi-Nippon Financial Holdings has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Nishi-Nippon Financial Holdings 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 Nishi-Nippon Financial Holdings. Refinancing is at 86, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 86% of its competitors. Liquidity is also good at 83, meaning the company generates more profit to service its debt than 83% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 33, which means the company has an above-average debt-to-equity ratio. It has more debt than 67% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), Nishi-Nippon Financial Holdings 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 Nishi-Nippon Financial Holdings 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 Nishi-Nippon Financial Holdings 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	59	22	33
REFINANCING
REFINANCING	100	68	81	86
LIQUIDITY
LIQUIDITY	91	93	81	83
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	92	70	82

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Nishi-Nippon Financial Holdings 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	56	55	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	71	44	^new
MARKET PULSE
MARKET PULSE	n/a	16	17	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	44	28	^new

Last update of Sentiment Rank: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Nishi-Nippon Financial Holdings.
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