Nihon Parkerizing Co (TSE:4095) GF Value Rank : 7 (As of May. 18, 2024)

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What is Nihon Parkerizing Co GF Value Rank?

Nihon Parkerizing 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 Nihon Parkerizing Co's GF Value Rank

For the Specialty Chemicals subindustry, Nihon Parkerizing 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.

Nihon Parkerizing Co's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nihon Parkerizing Co's GF Value Rank distribution charts can be found below:

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

Nihon Parkerizing Co GF Value Rank Related Terms

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Nihon Parkerizing Co (TSE:4095) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Nihon Parkerizing Co Ltd (TSE:4095) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-15-1 Nihonbashi, Chuo-ku, Tokyo, JPN, 103-0027

Website

http://www.parker.co.jp

Nihon Parkerizing Co Ltd is a Japan-based chemical company. It engages in the production and sale of metal surface treatment chemicals, corrosion prevention chemicals, industrial chemicals and paints. The company's business segments include Chemicals, Equipment, Jobbing, and Other which includes its building maintenance business, transportation business, and solar power generation business. The company generates the majority of its revenue from the Chemicals Business. The chemicals division manufactures and sells chemicals to form a conversion coating on the surface of metals and other substrates to improve their functionality by improving corrosion resistance, wear resistance, lubricity and other performances, thereby adding value to the substrate materials.

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