What are the four investment strategies and screening methods by a leading quantitative analysis expert?
(Photo: Fast&Slow/PIXTA)
Read other articles in the special feature “Stock Dojo: Stocks that can win in the new NISA era”
The Nikkei Stock Average, which recovered to the 30,000 yen level in 2023, has remained steady since then. The new NISA will be launched in early 2024, and the influx of individual investors will become more active.
The first feature of the December 16 issue of Weekly Toyo Keizai is “Stock Dojo: Stocks that can win in the new NISA era”.This special feature completely captures the essence of the 2024 New Year issue of the Company Quarterly Report. This should help you quickly find a “treasure brand.”
Companies that can earn money even if PBR is less than 1x
Ever since the Tokyo Stock Exchange announced the “Request regarding measures to realize management that is conscious of capital costs and stock prices,” there has been a continued search for low PBR (price/book value ratio) stocks.
“Weekly Toyo Keizai 2023 December 16 Special Issue (Stock Dojo: Stocks that can win in the new NISA era)”[雑誌]” (Toyo Keizai Inc.) Click on the book image to jump to the Amazon site.
On the other hand, companies whose stock prices have remained below 1x PBR for a long time also mean that investors have evaluated them as having no hope for growth. In other words, if you jump too easily just because the PBR is below 1x, you could end up with sluggish growth in business performance and stock prices.
To avoid such a situation, it is effective to select companies by combining the conditions of “PBR less than 1 times” and “ROE (return on equity) of 8% or more.”
ROE is calculated by dividing the amount of net profit a company earns in a year by the amount of equity. In the case of Japanese companies, if this ratio exceeds 8%, they are evaluated as “profitable companies.” Therefore, stocks that meet these two conditions are “companies that can earn money even if their PBR is below 1x.”
What was the actual stock price performance? The graph below shows the stock return since 2008. The results are obvious. The stock return for 15 years was 642%, which far exceeded the rise and fall rate of the Nikkei Stock Average (70%) over the same period. When screening “Company Quarterly Report Online”, you can set the conditions as shown in the table below using AND search.
【 Condition setting 】
① Early stage ROE: more than 8% (＞=8.00)
② Early PBR: 1 times less than 1.00 (<1.00)
2023-12-14 01:01:00
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