We continue our analysis be reviewing the performance by company and will review the top and bottom Mid-Cap companies by Results Score and three-month change in Results Score.
The Japan Analytics Results Score is a measure of earnings results and earnings momentum which covers the last eight quarters for revenue and operating income.
The score has a maximum of 30 and minimum of -30.
TOP 20 MID CAP COMPANIES RANKED BY RESULTS SCORE 11/17
Apart from 3 small brokers and an Investment Advisor, there is plenty of business diversity in the Top 20. Three are already overbought, two are Fully Priced but not yet overbought and two are loss-making including Aeria which fell 36% in the last three months – see our post here. Only Honda parts maker Yachiyo offers significant upside, with wire and cable company Tatsuta a distant second.
BOTTOM 20 MID CAP COMPANIES RANKED BY RESULTS SCORE 11/17
Three retailers, three internet companies, two household equipment and two waste water treatment companies make the list of bottom ranked mid caps by Results Score. Four companies are loss-making and two are already in the oversold category (Price Score <-2). For those willing to bet on mean reversion, AT-Group, Maxvalu Nishinihon, Zojirushi, Hibiya Engineering and Nuflare offer plenty of upside in our valuation model.
TOP 20 MID CAP COMPANIES RANKED BY 3 MONTH CHANGE IN RESULTS SCORE 11/17
The top ranked companies by three-month change include tow online brokers, two banks and two real estate companies. Four companies are loss-making. While it is nice to see Euglena recovering its mojo, it is one of only 9 companies in Japan that are oversold but also fully-priced. Apart from banks and construction companies, only Sun Frontier Fudosan offers much upside.
BOTTOM 20 MID CAP COMPANIES RANKED BY 3 MONTH CHANGE IN RESULTS SCORE 11/17
Ivy Cosmetics had a Price Score over 10 in May this year and its score is still over 3 and is fully priced. It has a history of making highly optimistic forecasts which are then revised down sharply. A stock to be avoided. Otherwise, for those expecting reversion to the mean, Nihon Eslead, Tsuzuki Denki, Misawa Homes and Kitagawa Iron Works have the greatest upside.
The next post will look at Small Caps to round out our Result Reviews
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