TOWA Pharmaceutical Co (TSE:4553) GF Value Rank : 8 (As of May. 17, 2024)

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What is TOWA Pharmaceutical Co GF Value Rank?

TOWA Pharmaceutical Co has the GF Value Rank of 8.

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 TOWA Pharmaceutical Co's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, TOWA Pharmaceutical 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.

TOWA Pharmaceutical Co's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, TOWA Pharmaceutical Co's GF Value Rank distribution charts can be found below:

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

TOWA Pharmaceutical Co GF Value Rank Related Terms

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TOWA Pharmaceutical Co (TSE:4553) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » TOWA Pharmaceutical Co Ltd (TSE:4553) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-11, Shinbashi-cho, Kadoma, Osaka, JPN, 571-8580

Website

http://www.towayakuhin.co.jp

TOWA Pharmaceutical Co Ltd is a Japan based pharmaceutical company engaged in research and development, production, and marketing of generic drugs. It also provides drug consulting services for patients and their families and relatives. It organizes academic seminars for medical professionals and posts articles in journals. It participates in training for pharmacists. The company has three main plants in operation namely Osaka plant, Okayama plant, and Yamagata plant. Towa has offers more than 500 drugs to meet the diverse therapeutic requirements including lifestyle related diseases such as hypertension and diabetes, digestive system diseases, nervous system diseases and allergic diseases, vitamins and antibiotics.

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