February 15, 2024
Top 10 Stock Sumitomo Heavy Strong 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 Sumitomo Heavy Strong Buy

360 METRICS	February 15, 2024
VALUE
VALUE	91
GROWTH
GROWTH	61
SAFETY
SAFETY	78
SENTIMENT
SENTIMENT	22
360° VIEW
360° VIEW	77

ANALYSIS: With an Obermatt 360° View of 77 (better than 77% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Sumitomo Heavy are very positive. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators above average for Sumitomo Heavy. The consolidated Value Rank has an attractive rank of 91, which means that the share price of Sumitomo Heavy is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 91% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 61, 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. The company is also safely financed with a Safety Rank of 78. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of only 22. Professional investors are more confident in 78% other stocks. ...read more

RECOMMENDATION: With a consolidated 360° View of 77, Sumitomo Heavy is better positioned than 77% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 91), above-average growth (Growth Rank of 61), and safe financing practices (Safety Rank of 78), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the professional market sentiment is on the riskier side (Sentiment Rank of 22), but that could also mean an overreaction to negative news in the past. Good value is sometimes an indication that the company's future is challenging. If they have been enjoying above average growth and are still a good value, this may not continue. We recommend evaluating whether the future of Sumitomo Heavy is as challenging as the low price of the stock despite good growth and safe financing practices suggest. Since the professional community is pessimistic, you may want to reflect these negative opinions in light of what you find reasonable to expect for the future. If you believe this pessimistic view is transitory, you have a solid investment case based on current financial factors. ...read more

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Sentiment Strategy: Professional Market Sentiment for Sumitomo Heavy negative

SENTIMENT METRICS	February 15, 2024
ANALYST OPINION
ANALYST OPINION	20
OPINIONS CHANGE
OPINIONS CHANGE	70
PRO HOLDINGS
PRO HOLDINGS	23
MARKET PULSE
MARKET PULSE	31
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	22

ANALYSIS: With an Obermatt Sentiment Rank of 22 (better than 22% compared with alternatives), overall professional sentiment and engagement for the stock Sumitomo Heavy is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for Sumitomo Heavy. Analyst Opinions are at a rank of 20 (worse than 80% 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 70, 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 Sumitomo Heavy. But the Professional Investors rank is low at 23, which means that professional investors hold less stock in this company than in 77% of alternative investment opportunities. Pros tend to invest in other companies. Market Pulse is also low at a rank of 31, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 69% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 22 (less encouraging than 78% compared with investment alternatives), Sumitomo Heavy 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: Sumitomo Heavy Stock Price Value at the top

VALUE METRICS	February 15, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	89
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	80
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	91
DIVIDEND YIELD
DIVIDEND YIELD	76
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91

ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2024, Sumitomo Heavy shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Sumitomo Heavy. Price-to-Sales is 89 which means that the stock price compared with what market professionals expect for future sales is lower than for 89% of comparable companies, indicating a good value for Sumitomo Heavy's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 80% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 91. Compared with other companies in the same industry, dividend yields of Sumitomo Heavy are expected to be higher than for 76% of all competitors (a Dividend Yield rank of 76). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 91, is a buy recommendation based on Sumitomo Heavy's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Sumitomo Heavy based on its detailed value metrics.

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Growth Strategy: Sumitomo Heavy Growth Momentum good

GROWTH METRICS	February 15, 2024
REVENUE GROWTH
REVENUE GROWTH	10
PROFIT GROWTH
PROFIT GROWTH	100
CAPITAL GROWTH
CAPITAL GROWTH	20
STOCK RETURNS
STOCK RETURNS	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61

ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), Sumitomo Heavy 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 Sumitomo Heavy. Profit Growth has a rank of 100, which means that currently professionals expect the company to grow its profits more than 100% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 81 (above 81% of alternative investments). But Sales Growth has a below the median rank of 10, which means that, currently, professionals expect the company to grow less than 90% of its competitors, and Capital Growth also has a lower rank of 20. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, 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 Sumitomo Heavy. ...read more

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Safety Strategy: Sumitomo Heavy Debt Financing Safety very solid

SAFETY METRICS	February 15, 2024
LEVERAGE
LEVERAGE	54
REFINANCING
REFINANCING	84
LIQUIDITY
LIQUIDITY	69
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	78

ANALYSIS: With an Obermatt Safety Rank of 78 (better than 78% compared with alternatives) for 2024, the company Sumitomo Heavy has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Sumitomo Heavy 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 Sumitomo Heavy. Leverage is at 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors. Refinancing is at a rank of 84, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 84% of its competitors. Finally, Liquidity is also good at a rank of 69, which means that the company generates more profit to service its debt than 69% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 78 (better than 78% compared with alternatives), Sumitomo Heavy has a financing structure that is significantly 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: Sumitomo Heavy Top Financial Performance

COMBINED PERFORMANCE	February 15, 2024
VALUE
VALUE	91
GROWTH
GROWTH	61
SAFETY
SAFETY	69
COMBINED
COMBINED	96

ANALYSIS: With an Obermatt Combined Rank of 96 (better than 96% compared with investment alternatives), Sumitomo Heavy (Industrial Machinery, Japan) shares have much better financial characteristics than comparable stocks. Shares of Sumitomo Heavy are a good value (attractively priced) with a consolidated Value Rank of 91 (better than 91% of alternatives), show above-average growth (Growth Rank of 61), and are safely financed (Safety Rank of 78), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 96, is a strong buy recommendation based on Sumitomo Heavy's financial characteristics. As the company Sumitomo Heavy's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 91), above-average growth (Obermatt Growth Rank of 61), and indicate that the company is safely financed (Obermatt Safety Rank of 78), 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 Sumitomo Heavy. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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