Meiji Holdings Co (Meiji Holdings Co) GF Value Rank : 7 (As of May. 03, 2024)

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What is Meiji Holdings Co GF Value Rank?

Meiji Holdings Co has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Meiji Holdings Co's GF Value Rank

For the Packaged Foods subindustry, Meiji Holdings Co's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Meiji Holdings Co's GF Value Rank Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Meiji Holdings Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Meiji Holdings Co's GF Value Rank falls into.

Meiji Holdings Co GF Value Rank Related Terms

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Meiji Holdings Co (Meiji Holdings Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Meiji Holdings Co Ltd (OTCPK:MEJHF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

MEJHY:USA 2269:Japan

Address

4-16, Kyobashi 2-chome, Chuo-ku, Tokyo, JPN, 104-0031

Website

http://www.meiji.com

Meiji Holdings was established in April 2009 as a merged entity of Meiji Dairies, Japan's largest dairy company, and Meiji Seika, the country's number-two confectionery maker. The amalgamation was propelled by a surge in commodity prices, Japan's aging and shrinking population, and fierce competition. The food business, comprising dairy and confectionery operations, represents more than 80% of the group's sales and profits. The rest mainly comes from the pharmaceutical business, specializing in antibacterial and generic drugs, as well as vaccines. Meiji is looking to step up overseas expansion of the food business, particularly in China, which will serve as a key growth driver over the medium term.

Meiji Holdings Co (Meiji Holdings Co) Headlines

From GuruFocus

Meiji Holdings Co Stock Appears To Be Modestly Undervalued

By GF Value GF Value • 05-03-2021

Bernard Horn Sells Stake in Japanese Confectionary Company

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Bernard Horn Comments on MEIJI Holdings

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Bernard Horn Comments on MEIJI Holdings Co Ltd

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