Fact based stock research
Shinkin Central Bank (TSE:8421)

JP3429200003

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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).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Shinkin Central Bank stock research in summary

shinkin-central-bank.jp

ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), Shinkin Central Bank (Specialized Finance, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Shinkin Central Bank are low in value (priced high) with a consolidated Value Rank of 42 (worse than 58% of alternatives) and show below-average growth (Growth Rank of 12) but are safely financed (Safety Rank of 88), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on Shinkin Central Bank's financial characteristics. As the company Shinkin Central Bank's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 42) and low growth (Obermatt Growth Rank of 12), 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. In this case, good financing practices (Obermatt Safety Rank of 88) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for 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	42
Growth Rank	12
Safety Rank	88
Combined Rank	45

Country	Japan
Industry	Specialized Finance
Index
Size class	XX-Large

25-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: Shinkin Central Bank

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	23	20	42
GROWTH
GROWTH	13	6	11	12
SAFETY
SAFETY	88	86	54	88
SENTIMENT
SENTIMENT	n/a	28	24	^new
360° VIEW
360° VIEW	n/a	19	8	^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 Shinkin Central Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	23	20	42
GROWTH
GROWTH	13	6	11	12
SAFETY
SAFETY	88	86	54	88
COMBINED
COMBINED	41	25	16	45

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Shinkin Central Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 42 (worse than 58% compared with alternatives), Shinkin Central Bank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Shinkin Central Bank. Price-to-Sales (P/S) is 97, which means that the stock price compared with what market professionals expect for future sales is lower than for 97% of comparable companies, indicating a good value concerning Shinkin Central Bank's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 59, which means that dividends are expected to be higher than for 59% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 75% of alternatives (only 25% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 99% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 42, is a hold recommendation based on Shinkin Central Bank's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. 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)	7	100	91	97
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	7	2	1	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	62	32	19	25
DIVIDEND YIELD
DIVIDEND YIELD	58	17	21	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	29	23	20	42

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 12 (better than 12% compared with alternatives), Shinkin Central Bank 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 Shinkin Central Bank. While Sales Growth ranks at 98, professionals currently expect the company to grow more than 98% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 15, which means that, currently, professionals expect the company to grow its profits less than 85% of its competitors, and Capital Growth has a low rank of 1. Historic stock returns were also below average with a current Stock Returns rank of 3 which means that the stock returns have recently been below 97% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 12, is a sell 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. 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 isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	10	20	98	98
PROFIT GROWTH
PROFIT GROWTH	n/a	18	21	15
CAPITAL GROWTH
CAPITAL GROWTH	n/a	57	3	1
STOCK RETURNS
STOCK RETURNS	56	21	11	3
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	13	6	11	12

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company Shinkin Central Bank has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Shinkin Central Bank 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 where two out of three are above average for Shinkin Central Bank.Leverage is at 98, meaning the company has a below-average debt-to-equity ratio. It has less debt than 98% of its competitors.Refinancing is at a rank of 63, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Liquidity is at 45, meaning that the company generates less profit to service its debt than 55% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 88 (better than 88% compared with alternatives), Shinkin Central Bank has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Shinkin Central Bank more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	100	100	96	98
REFINANCING
REFINANCING	30	100	53	63
LIQUIDITY
LIQUIDITY	95	13	21	45
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88	86	54	88

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Shinkin Central Bank 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	n/a	n/a	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	9	10	^new
MARKET PULSE
MARKET PULSE	n/a	42	54	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	28	24	^new

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