SKSUF (Sekisui Chemical Co) GF Value Rank : 6 (As of Dec. 13, 2024)

View and export this data going back to 2014. Start your Free Trial

What is Sekisui Chemical Co GF Value Rank?

Sekisui Chemical Co has the GF Value Rank of 6.

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 Sekisui Chemical Co's GF Value Rank

For the Conglomerates subindustry, Sekisui Chemical 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.

Sekisui Chemical Co's GF Value Rank Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Sekisui Chemical Co's GF Value Rank distribution charts can be found below:

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

Sekisui Chemical Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of Sekisui Chemical Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Sekisui Chemical Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Sekisui Chemical Co Ltd (OTCPK:SKSUF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

4204:Japan SUI:Germany

Address

4-4, Nishitenma 2-Chome, Kita-ku, Osaka, JPN, 530-8565

Website

http://www.sekisui.co.jp

Sekisui Chemical Co Ltd is a Japanese diversified holding company that owns a high-performance-plastics company, a residential construction company, and an urban infrastructure company. The plastics part of the business focuses on the production of materials for electronics, transportation, and buildings. The residential construction segment builds single-family and multiunit housing in Japan. The company's unit construction method allows prebuilt modular components to be assembled at various plants, which reduces construction time on-site. Sekisui's urban infrastructure products and industrial piping are used in mass transit and buildings. High-performance plastics and residential construction account for the majority of the company's revenue.