November 2, 2023
Top 10 Stock Shinsei Bank Buy Recommendation

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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° View Shinsei Bank Buy

360 METRICS	November 2, 2023
VALUE
VALUE	47
GROWTH
GROWTH	91
SAFETY
SAFETY	70
SENTIMENT
SENTIMENT	21
360° VIEW
360° VIEW	67

ANALYSIS: With an Obermatt 360° View of 67 (better than 67% compared with alternatives), overall professional sentiment and financial characteristics for the stock Shinsei Bank are above average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for Shinsei Bank. The consolidated Growth Rank has a good rank of 91, 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. This means that growth is higher than for 91% of competitors in the same industry. In addition, the consolidated Safety Rank has a safer rank of 70 which means that the company has a financing structure that is safer than 70% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the consolidated Value Rank has a less desirable rank of 47 which means that the share price of Shinsei Bank is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is higher than for 53% of alternative stocks in the same industry. The consolidated Sentiment Rank also has a low rank of 21, which means that professional investors are more pessimistic about the stock than for 79% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 67, Shinsei Bank is better positioned than 67% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, the picture is ambiguous. Growth is above-average (Growth Rank of 91), and the company is safely financed (Safety Rank of 70). However, professional market sentiment is low(Sentiment Rank of 21). The negative market view on Shinsei Bank may be due to the high stock price (low value). A growth company like this may get too expensive at one point in time. If too many investors are desperate to board the train, they may drive stock prices above reasonable levels. It is typical for growth companies to have low value ratings, because investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Shinsei Bank compared with alternatives? You can use the following rule of thumb: The value rank shouldn’t be lower than one hundred minus the growth rank. For example, if the growth rank is at 75, and the value rank is at 5, you should tread carefully. If the value rank is at 40, it still might be a good value if the value rank is above 60. As market sentiment is low, you should be careful with paying more than market-average for this stock and conduct further research into the company’s future growth potential. ...read more

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Sentiment Strategy: Professional Market Sentiment for Shinsei Bank negative

SENTIMENT METRICS	November 2, 2023
ANALYST OPINION
ANALYST OPINION	31
OPINIONS CHANGE
OPINIONS CHANGE	81
PRO HOLDINGS
PRO HOLDINGS	29
MARKET PULSE
MARKET PULSE	15
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	21

ANALYSIS: With an Obermatt Sentiment Rank of 21 (better than 21% compared with alternatives), overall professional sentiment and engagement for the stock Shinsei Bank is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for Shinsei Bank. Analyst Opinions are at a rank of 31 (worse than 69% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 81, which means that stock research experts have found something to make them more positive about investing in the company. In other words, they are getting more optimistic of stock investments in Shinsei Bank. But the Professional Investors rank is low at 29, which means that professional investors hold less stock in this company than in 71% of alternative investment opportunities. Pros tend to invest in other companies. Market Pulse is also low at a rank of 15, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 85% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 21 (less encouraging than 79% compared with investment alternatives), Shinsei Bank has a reputation among professional investors that is far below that of its competitors. These are quite a few negative sentiment signals. One may want to trust the analysts that are changing their opinions. They may be early indications of better times, especially if the company is a smaller one. But If they are an extra large company, they should have more professional stockholders than are currently present. ...read more

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Value Strategy: Shinsei Bank Stock Price Value below-average critical

VALUE METRICS	November 2, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	67
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	69
DIVIDEND YIELD
DIVIDEND YIELD	5
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	47

ANALYSIS: With an Obermatt Value Rank of 47 (worse than 53% compared with alternatives), Shinsei Bank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Shinsei Bank. Price-to-Sales (P/S) is 67, which means that the stock price compared with what market professionals expect for future sales is lower than for 67% of comparable companies, indicating a good value regarding Shinsei Bank's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 53% 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 69. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 5% of all competitors have even lower dividend yields than Shinsei Bank (a Dividend Yield Rank of 5). 95% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 47, is a hold recommendation based on Shinsei Bank'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. ...read more

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Growth Strategy: Shinsei Bank Growth Momentum high

GROWTH METRICS	November 2, 2023
REVENUE GROWTH
REVENUE GROWTH	38
PROFIT GROWTH
PROFIT GROWTH	100
CAPITAL GROWTH
CAPITAL GROWTH	75
STOCK RETURNS
STOCK RETURNS	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	91

ANALYSIS: With an Obermatt Growth Rank of 91 (better than 91% compared with alternatives) for 2023, Shinsei Bank 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, where half of the indicators are below and half above average for Shinsei Bank. Profit Growth, with a rank of 100 (better than 100% of its competitors), and Capital Growth, with a rank of 75, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 38, which means that, currently, professionals expect the company to grow less than 62% of its competitors, and Stock Returns are at a rank of 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 91, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. ...read more

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Safety Strategy: Shinsei Bank Debt Financing Safety above-average

SAFETY METRICS	November 2, 2023
LEVERAGE
LEVERAGE	63
REFINANCING
REFINANCING	64
LIQUIDITY
LIQUIDITY	55
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	70

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Shinsei Bank has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Shinsei 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 all three are above average for Shinsei Bank. Leverage is at 63, meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors. Refinancing is at a rank of 64, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 64% of its competitors. Finally, Liquidity is also good at a rank of 55, which means that the company generates more profit to service its debt than 55% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Shinsei Bank has a financing structure that is safer 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. ...read more

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Combined financial peformance: Shinsei Bank Top Financial Performance

COMBINED PERFORMANCE	November 2, 2023
VALUE
VALUE	47
GROWTH
GROWTH	91
SAFETY
SAFETY	55
COMBINED
COMBINED	90

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Shinsei Bank (Regional Banks, Japan) shares have much better financial characteristics than comparable stocks. Shares of Shinsei Bank 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 91) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Shinsei Bank's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Shinsei Bank 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 91). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) 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). ...read more

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