Nihon Chouzai Co (TSE:3341) GF Value Rank : 10 (As of Jun. 08, 2024)

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What is Nihon Chouzai Co GF Value Rank?

Nihon Chouzai Co has the GF Value Rank of 10.

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 Chouzai Co's GF Value Rank

For the Pharmaceutical Retailers subindustry, Nihon Chouzai 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 Chouzai Co's GF Value Rank Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Nihon Chouzai Co's GF Value Rank distribution charts can be found below:

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

Nihon Chouzai Co GF Value Rank Related Terms

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Nihon Chouzai Co (TSE:3341) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Nihon Chouzai Co Ltd (TSE:3341) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sapporo Odori Nishi Front Park 8 floors 7-1, Tokyo, JPN

Website

http://www.nicho.co.jp

Nihon Chouzai Co Ltd operates in the pharmaceutical industry. The company is organized into segments: Pharmacy, Pharmaceutical Manufacturing and Sales, and Healthcare Staffing Services and operates mainly from Japan. Through its operating segments, the firm manages a chain of pharmacies nationwide, manufactures and sells generic drugs, and provides staffing services that are specialized in pharmacy.

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