Hello everyone. I’m @olivertomolife and I love investing and shareholder special offers!
Did you know that there is an index that can be calculated using a company’s annual sales and market capitalization?
That indicator is called PSR, and it can be used to find undervalued stocks!
In this article, I would like to introduce you to some of the stocks that I found using PSR!
- You are looking for stocks with low price-to-sales ratio.
- You are looking for stocks with high dividend
- Want to invest in undervalued stocks.
- Three recommended stocks with a PSR of 0.5x or less!
- What is PSR?
- PSR guidelines
- Should I be wary of companies with a high PSR?
The author has three years of investment experience and has experience in the securities industry.
By reading this article, you’ll learn about undervalued Japanese stocks!
Three recommended stocks with a PSR of 0.5x or less!
1 Itochu Enex
Itochu Enex is one of the leading energy trading companies in Japan of the Itochu Group.
The company is engaged in a wide range of businesses from household energy to corporate energy.
Its PSR is 0.15 times, which is quite reasonable.
For more details about Itochu Enex, please refer to the following article.
2 Arconix
Arconix is a company that deals in rare metals and other non-ferrous metals needed for automobiles and smartphones.
It is a global company with strong overseas operations and offices in more than 10 countries.
The PSR is also undervalued at 0.19x.
For more details about Arconics, please refer to the following article.
3 Fujimac
Fujimac is a manufacturer of general kitchen equipment and many of its products are manufactured in-house.
The company is researching labor-saving machinery for the restaurant industry and is taking on the challenge of labor shortages.
The PSR is 0.48%, which is undervalued.
For more details about Fujimac, please refer to the following article.
What is PSR?
PSR stands for price to sales ratio of a company, and in many situations it is called price sales ratio.
It is a number that is calculated by dividing a company’s market capitalization by its annual sales, and is sometimes used to make investment decisions for startups and other companies.
This number can be used to determine if a stock is undervalued, but it is important to keep in mind the future trends of the industry and how it compares to other companies in the same industry.
Guideline for PSR
Generally speaking, a PSR of 20 times or more is considered overvalued and a PSR of 0.5 times or more is undervalued.
The average PSR of Japanese stocks is said to be 1X, so stocks below that can be considered undervalued.
Companies with high industry or profit may be judged as overvalued, so you need to be careful.
Should I be wary of companies with high PSR?
Some growth companies have a PSR of more than 20 times.
These stocks are not suitable for long-term investment because they are said to be prone to stock price volatility.
The following is a list of these stocks.
| Issue Code | Company Name | PSR |
| 6697 | Techpoint | 856.7 |
| 9399 | BEAT HLDG | 430.5 |
| 4425 | Kudan | 223x |
| 4596 | Kubota Pharmaceutical HLDG | 235.8 |
| 4883 | modaris | 123.4 |
These stocks may be good for short-term trading, but caution is advised.
Conclusion
- PSR needs to be compared with other companies in the same industry.
- Comparison of PSR alone is dangerous.
- Use it as one of your investment decisions.
I have introduced three stocks with a PSR of less than 0.5%!
Investing is your own responsibility. Investing is your own responsibility, so make your own final decision after referring to various opinions.
I will continue to send out useful information for investment, so please stay tuned.
Thank you for reading to the end!
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