The underlying tendency is to the upside for shares in Yamato Kogyo Co., Ltd. and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● According to Refinitiv, the company's ESG score for its industry is poor.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The company's share price in relation to its net book value makes it look relatively cheap.
● The company has a low valuation given the cash flows generated by its activity.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Historically, the company has been releasing figures that are above expectations.
YAMATO KOGYO CO., LTD. is a Japan-based company principally engaged in the manufacture and sale of shape steel. The Company operates through four geographic segments. The Steel (Japan) segment is engaged in the manufacture and sale of H-shape steel, channel steel, I-shape steel, steel sheet piles, elevator guide rails, shaped steel for shipbuilding and ship cans, among others. The Steel (South Korean) segment is engaged in the manufacture and sale of steel bars. The Steel (Thailand) segment is engaged in the manufacture and sale of H-shape steel, channel steel, I-shape steel and steel sheet piles. The Railway-related segment is engaged in process and sale of turnouts and crossings, extensible joints, new crossings, glued insulated rails, derailment prevention guards, tie plates and bolts. The Company is also involved in the transportation and real estate properties business, as well as the treatment of medical waste.