4004.T - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 72/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±46.6% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Largely moves in line with the broader market.

Beta (Market Relation)

1.15x

Above average

Volatility (5Y p.a.)

46.6% p.a.

5-Year Horizon

Max Drawdown (5Y)

-46.7%

5-Year Horizon

Sharpe Ratio

0.93

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Volatility Expansion (3Y > 5Y) High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+189.6%
3 Years	54.2%	-46.7%	1.65	+92%
5 Years	46.6%	-46.7%	0.93	+46.4%
10 Years	43.3%	-73.7%	0.61	+29.1%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

🔴 High valuation risk: Avg P/E of 59.7 (Elevated multiple compression risk)

Strong cyclicality: The business model is sensitive to economic downturns.

Elevated Short-Term Volatility: 3Y volatility (54.2%) is noticeably higher than the 5Y average (46.6%).

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (46.6% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -73.7% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

6 ISS Score: 6 / 10

Audit Risk

1 ISS Score: 1 / 10

Board Risk

5 ISS Score: 5 / 10

Short Ratio