DB:STAA

Stock Analysis Report

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Executive Summary

Stanley Electric Co., Ltd., together with its subsidiaries, designs, produces, and sells lighting equipment, accessories, and electronic components.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Stanley Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STAA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

STAA

-4.3%

DE Auto Components

-1.6%

DE Market


1 Year Return

-4.9%

STAA

-21.2%

DE Auto Components

8.3%

DE Market

Return vs Industry: STAA exceeded the German Auto Components industry which returned -25.2% over the past year.

Return vs Market: STAA underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

STAAIndustryMarket
7 Day-3.8%-4.3%-1.6%
30 Day-4.7%-0.5%0.2%
90 Day1.5%9.1%12.8%
1 Year-3.2%-4.9%-17.8%-21.2%10.7%8.3%
3 Year-22.4%-25.8%-46.5%-51.5%3.8%-4.5%
5 Year9.4%1.9%-53.2%-58.8%9.6%-5.2%

Price Volatility Vs. Market

How volatile is Stanley Electric's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Stanley Electric undervalued compared to its fair value and its price relative to the market?

53.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STAA (€20.2) is trading above our estimate of fair value (€14.75)

Significantly Below Fair Value: STAA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STAA is poor value based on its PE Ratio (53.1x) compared to the DE Auto Components industry average (17x).

PE vs Market: STAA is poor value based on its PE Ratio (53.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: STAA is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: STAA is overvalued based on its PB Ratio (1.2x) compared to the DE Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Stanley Electric forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAA's forecast earnings growth (34% per year) is above the savings rate (0.2%).

Earnings vs Market: STAA's earnings (34% per year) are forecast to grow faster than the German market (23.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STAA's revenue (8% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: STAA's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STAA's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

  • Explore growth companies in the Automobiles industry.

Past Performance

How has Stanley Electric performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STAA has high quality earnings.

Growing Profit Margin: STAA's current net profit margins (2.3%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: STAA's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: STAA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STAA had negative earnings growth (-80.2%) over the past year, making it difficult to compare to the Auto Components industry average (-50.2%).


Return on Equity

High ROE: STAA's Return on Equity (2.9%) is considered low.


Next Steps

Financial Health

How is Stanley Electric's financial position?


Financial Position Analysis

Short Term Liabilities: STAA's short term assets (¥228.3B) exceed its short term liabilities (¥69.7B).

Long Term Liabilities: STAA's short term assets (¥228.3B) exceed its long term liabilities (¥22.3B).


Debt to Equity History and Analysis

Debt Level: STAA's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: STAA's debt to equity ratio has reduced from 7.3% to 2.6% over the past 5 years.

Debt Coverage: STAA's debt is well covered by operating cash flow (625.4%).

Interest Coverage: STAA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Stanley Electric current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: STAA's dividend (1.75%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: STAA's dividend (1.75%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: STAA's dividend payments have been volatile in the past 10 years.

Growing Dividend: STAA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.9%), STAA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

JP¥332m

CEO Compensation


CEO

Takanori Kitano

5.42yrs

Tenure

JP¥332,000,000

Compensation

Mr. Takanori Kitano has been President and Representative Director at Stanley Electric Co. Ltd. since March 2015.


CEO Compensation Analysis

Compensation vs Market: Takanori's total compensation ($USD3.13M) is about average for companies of similar size in the German market ($USD2.51M).

Compensation vs Earnings: Takanori's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Stanley Electric Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stanley Electric Co., Ltd.
  • Ticker: STAA
  • Exchange: DB
  • Founded: 1920
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: JP¥414.491b
  • Listing Market Cap: JP¥3.324b
  • Shares outstanding: 161.03m
  • Website: https://www.stanley.co.jp

Number of Employees


Location

  • Stanley Electric Co., Ltd.
  • 2-9-13 Nakameguro
  • Meguro-ku
  • Tokyo
  • 153-8636
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6923TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
STAE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
STAADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Stanley Electric Co., Ltd., together with its subsidiaries, designs, produces, and sells lighting equipment, accessories, and electronic components. It operates through Automotive Equipment Business, Elect ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 20:46
End of Day Share Price2020/08/03 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.