Fact based stock research
SMTH (TSE:8309)

JP3892100003

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.

SMTH stock research in summary

smth.jp

ANALYSIS: With an Obermatt Combined Rank of 26 (worse than 74% compared with investment alternatives), SMTH (Diversified Banks, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of SMTH are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives) but show below-average growth (Growth Rank of 31), and are riskily financed (Safety Rank of 26), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 26, is a hold recommendation based on SMTH's financial characteristics. As the company SMTH's key financial metrics exhibit good value (Obermatt Value Rank of 60) but low growth (Obermatt Growth Rank of 31) and risky financing practices (Obermatt Safety Rank of 26), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 60% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. 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	60
Growth Rank	31
Safety Rank	26
Combined Rank	26

Country	Japan
Industry	Diversified Banks
Index	TOPIX 100, Nikkei 225
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

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: SMTH

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	75	79	66	60
GROWTH
GROWTH	17	39	27	31
SAFETY
SAFETY	100	43	18	26
SENTIMENT
SENTIMENT	n/a	44	40	^new
360° VIEW
360° VIEW	n/a	61	24	^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 SMTH is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	75	79	66	60
GROWTH
GROWTH	17	39	27	31
SAFETY
SAFETY	100	43	18	26
COMBINED
COMBINED	81	55	30	26

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), SMTH shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for SMTH. Price-to-Sales (P/S) is 55, which means that the stock price compared with what market professionals expect for future sales is lower than for 55% of comparable companies, indicating a good value concerning SMTH's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 77% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 58 (dividends are expected to be higher than 58% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 54% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for SMTH to 46. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on SMTH's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. 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)	92	89	68	55
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	52	66	56	77
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	82	57	52	46
DIVIDEND YIELD
DIVIDEND YIELD	56	63	65	58
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	75	79	66	60

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), SMTH shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for SMTH. Sales Growth has a rank of 67 which means that currently, professionals expect the company to grow more than 67% of its competitors. Capital Growth is also above 4% of competitors with a rank of 51, and Stock Returns with the rank of 53 is also an outperformance. Only Profit Growth is low with a rank of 4 which means that currently, professionals expect the company to grow its profits less than 96% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 31, is a hold recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, SMTH is a good growth 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. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	9	24	54	67
PROFIT GROWTH
PROFIT GROWTH	33	61	4	4
CAPITAL GROWTH
CAPITAL GROWTH	n/a	19	65	51
STOCK RETURNS
STOCK RETURNS	58	75	57	53
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	17	39	27	31

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 26 (better than 26% compared with alternatives), the company SMTH 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 SMTH 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 SMTH and the other two below average. Leverage is at a rank of 85 meaning the company has a below-average debt-to-equity ratio. It has less debt than 85% of its competitors.Refinancing is at a rank of 40, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 60% of its competitors. Liquidity is at a rank of 6, meaning that the company generates less profit to service its debt than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 26 (worse than 74% compared with alternatives), SMTH has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of SMTH are on the safer side. Investors may have a short-term debt challenge and liquidity issues with SMTH 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	98	67	80	85
REFINANCING
REFINANCING	76	62	34	40
LIQUIDITY
LIQUIDITY	94	33	1	6
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	43	18	26

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of SMTH 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	74	82	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	37	6	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	12	14	^new
MARKET PULSE
MARKET PULSE	n/a	70	77	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	44	40	^new

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