Fact based stock research
Suzuki Motor (TSE:7269)

JP3397200001

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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.

Suzuki Motor stock research in summary

suzuki.co.jp

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), Suzuki Motor (Automobile Manufacturers, Japan) shares have much better financial characteristics than comparable stocks. Shares of Suzuki Motor are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 87) and are safely financed (Safety Rank of 73, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on Suzuki Motor's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Suzuki Motor exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 87). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 73) 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). 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	45
Growth Rank	87
Safety Rank	73
Combined Rank	81

Country	Japan
Industry	Automobile Manufacturers
Index	TOPIX 100, Low Waste, Recycling, Nikkei 225
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: Suzuki Motor

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	53	47	45
GROWTH
GROWTH	19	11	39	87
SAFETY
SAFETY	88	75	69	73
SENTIMENT
SENTIMENT	n/a	76	48	^new
360° VIEW
360° VIEW	n/a	55	48	^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 Suzuki Motor is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	53	47	45
GROWTH
GROWTH	19	11	39	87
SAFETY
SAFETY	88	75	69	73
COMBINED
COMBINED	46	41	55	81

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Suzuki Motor 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 are above average for Suzuki Motor. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value concerning Suzuki Motor's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 56% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 30 (dividends are expected to be higher than for 30% 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 55% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Suzuki Motor to 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Suzuki Motor'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 on 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 low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging 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)	36	54	59	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	46	50	62	56
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	39	47	49	45
DIVIDEND YIELD
DIVIDEND YIELD	63	40	37	30
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	46	53	47	45

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 87 (better than 87% compared with alternatives) for 2024, Suzuki Motor 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, with half of the indicators below and half above average for Suzuki Motor. Capital Growth has a rank of 100, which means that currently professionals expect the company to grow its invested capital more than 45% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 81 (above 81% of alternative investments). But Sales Growth has only a rank of 43, which means that, currently, professionals expect the company to grow less than 57% of its competitors, and Profit Growth is also low at a rank of 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 87, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Suzuki Motor, investors may want to look at value and sentiment indicators for a well-rounded picture of this 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 mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	62	75	56	43
PROFIT GROWTH
PROFIT GROWTH	80	24	30	45
CAPITAL GROWTH
CAPITAL GROWTH	n/a	10	37	100
STOCK RETURNS
STOCK RETURNS	23	37	69	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	11	39	87

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company Suzuki Motor 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 Suzuki Motor 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, with two out of three indicators above average for Suzuki Motor. Leverage is at a rank of 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Liquidity is also good at a rank of 75, meaning the company generates more profit to service its debt than 75% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 43, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), Suzuki Motor has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Suzuki Motor. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Suzuki Motor 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	79	60	64	62
REFINANCING
REFINANCING	34	51	41	43
LIQUIDITY
LIQUIDITY	92	81	73	75
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88	75	69	73

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Suzuki Motor 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	64	62	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	54	82	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	82	43	^new
MARKET PULSE
MARKET PULSE	n/a	31	21	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	76	48	^new

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