Fact based stock research
Pacific Metals (TSE:5541)

JP3448000004

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.

Pacific Metals stock research in summary

pacific-metals.co.jp

ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Pacific Metals (Diversified Metals & Mining, Japan) shares have much better financial characteristics than comparable stocks. Shares of Pacific Metals are low in value (priced high) with a consolidated Value Rank of 32 (worse than 68% of alternatives), show below-average growth (Growth Rank of 5), and are riskily financed (Safety Rank of 47), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Pacific Metals's financial characteristics. As the company Pacific Metals's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 32), low growth (Obermatt Growth Rank of 5), and risky financing practices (Obermatt Safety Rank of 47), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. 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	32
Growth Rank	5
Safety Rank	47
Combined Rank	89

Country	Japan
Industry	Diversified Metals & Mining
Index	Nikkei 225
Size class	Medium

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: Pacific Metals

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	65	73	36	32
GROWTH
GROWTH	12	27	3	5
SAFETY
SAFETY	83	47	47	47
SENTIMENT
SENTIMENT	n/a	4	1	^new
360° VIEW
360° VIEW	n/a	15	73	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 23-Sep-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Pacific Metals is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	65	73	36	32
GROWTH
GROWTH	12	27	3	5
SAFETY
SAFETY	83	47	47	47
COMBINED
COMBINED	59	89	89	89

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Pacific Metals the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 32 (worse than 68% compared with alternatives), Pacific Metals shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Pacific Metals. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 95, which means that the stock price is lower compared with invested capital than for 95% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 40 which means the stock price compared with what market professionals expect for future profits is higher than 60% of comparable companies, indicating a low value concerning Pacific Metals's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 95 and for the dividend yields rank which is lower than for 99% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 32, is a hold recommendation based on Pacific Metals's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Pacific Metals, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. 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 essential 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)	59	56	44	40
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	42	35	1	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	96	84	97	95
DIVIDEND YIELD
DIVIDEND YIELD	48	93	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	65	73	36	32

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Pacific Metals; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 5 (better than 5% compared with alternatives), Pacific Metals shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Pacific Metals. Only Capital Growth has a good rank of 65, which means that currently professionals expect the company to grow its invested capital more than 1% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 3 which means that currently professionals expect the company to grow less than 97% of its competitors. Profit Growth with a rank of 1 and Stock Returns with a rank of 6 are also low (below 94% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 5, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Pacific Metals is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	18	6	3	3
PROFIT GROWTH
PROFIT GROWTH	57	80	1	1
CAPITAL GROWTH
CAPITAL GROWTH	n/a	51	61	65
STOCK RETURNS
STOCK RETURNS	24	21	3	6
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	12	27	3	5

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Pacific Metals.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 47 (better than 47% compared with alternatives), the company Pacific Metals 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 Pacific Metals 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, where all three are above average for Pacific Metals. Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors. Refinancing is at a rank of 100, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. Finally, Liquidity is also good at a rank of 82, which means that the company generates more profit to service its debt than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 47 (worse than 53% compared with alternatives), Pacific Metals has a financing structure that is riskier than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Pacific Metals but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	100	98	100	100
REFINANCING
REFINANCING	94	93	100	100
LIQUIDITY
LIQUIDITY	1	82	82	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	83	47	47	47

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Pacific Metals 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	21	1	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	40	1	^new
MARKET PULSE
MARKET PULSE	n/a	5	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	4	1	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Pacific Metals.
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