Shares in Daiwa House Industry Co., Ltd. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company's attractive earnings multiples are brought to light by a P/E ratio at 11.23 for the current year.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● The company's share price in relation to its net book value makes it look relatively cheap.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The divergence of price targets given by the various analysts who make up the consensus is relatively low, suggesting a consensus method of evaluating the company and its prospects.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● The group shows a rather high level of debt in proportion to its EBITDA.
● The company is highly valued given the cash flows generated by its activity.
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Daiwa House Industry Co Ltd is a Japan-based company mainly is engaged in comprehensive business operations in the lifestyle infrastructure industry. The Company operates through six core business segments. The Detached Houses segment is engaged in custom-building and sales of detached houses. The Rental Houses segment is engaged in development, construction, management, operation, and brokerage of rental housing. The Condominium segment develops, sells, and manages condominiums. The Commercial Facilities segment develops, constructs, manages, and operates commercial facilities. The Business Facilities segment develops, constructs, manages, and operates logistics and manufacturing facilities, medical and nursing care facilities, and other facilities. The Environmental Energy segment includes the development and construction of renewable energy power plants, renewable energy power generation, and electricity retailing. The Company also develops other businesses.
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
