DB:SUK

Stock Analysis Report

Executive Summary

Suzuki Motor Corporation manufactures and sells automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, and internationally.

Rewards

Trading at 67.5% below its fair value

Earnings are forecast to grow 10.57% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (3.1%) are lower than last year (6%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Suzuki Motor's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.3%

SUK

0.8%

DE Auto

0.1%

DE Market


1 Year Return

-10.6%

SUK

2.4%

DE Auto

14.1%

DE Market

Return vs Industry: SUK underperformed the German Auto industry which returned 4.7% over the past year.

Return vs Market: SUK underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

SUKIndustryMarket
7 Day-3.3%0.8%0.1%
30 Day1.5%-5.9%0.2%
90 Day0.5%-6.8%3.3%
1 Year-9.2%-10.6%6.6%2.4%17.6%14.1%
3 Year13.3%8.9%2.8%-7.5%14.8%4.8%
5 Year55.1%46.2%-19.2%-30.7%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Suzuki Motor undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUK (€40.6) is trading below our estimate of fair value (€124.87)

Significantly Below Fair Value: SUK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SUK is poor value based on its PE Ratio (19.9x) compared to the Auto industry average (10.3x).

PE vs Market: SUK is good value based on its PE Ratio (19.9x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: SUK is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: SUK is overvalued based on its PB Ratio (1.5x) compared to the DE Auto industry average (0.8x).


Next Steps

Future Growth

How is Suzuki Motor forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUK's forecast earnings growth (10.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: SUK's earnings (10.6% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: SUK's earnings are forecast to grow, but not significantly.

Revenue vs Market: SUK's revenue (3.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: SUK's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUK's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Suzuki Motor performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUK has a large one-off loss of ¥82.2B impacting its December 31 2019 financial results.

Growing Profit Margin: SUK's current net profit margins (3.1%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: SUK's earnings have grown by 10.7% per year over the past 5 years.

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

Earnings vs Industry: SUK had negative earnings growth (-50.7%) over the past year, making it difficult to compare to the Auto industry average (-29.5%).


Return on Equity

High ROE: SUK's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Suzuki Motor's financial position?


Financial Position Analysis

Short Term Liabilities: SUK's short term assets (¥1,590.0B) exceed its short term liabilities (¥1,224.1B).

Long Term Liabilities: SUK's short term assets (¥1,590.0B) exceed its long term liabilities (¥343.7B).


Debt to Equity History and Analysis

Debt Level: SUK's debt to equity ratio (20.6%) is considered satisfactory.

Reducing Debt: SUK's debt to equity ratio has reduced from 29% to 20.6% over the past 5 years.

Debt Coverage: SUK's debt is well covered by operating cash flow (83.2%).

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


Balance Sheet

Inventory Level: SUK has a high level of physical assets or inventory.

Debt Coverage by Assets: SUK's debt is covered by short term assets (assets are 4.1x debt).


Next Steps

Dividend

What is Suzuki Motor's current dividend yield, its reliability and sustainability?

1.50%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Suzuki Motor before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.3%markettop25%3.6%industryaverage4.6%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: SUK's dividend (1.5%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: SUK's dividend (1.5%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), SUK's dividend payments are 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?

6.2yrs

Average board tenure


CEO

Toshihiro Suzuki (60yo)

3.7yrs

Tenure

0

Mr. Toshihiro Suzuki has been the President of Suzuki Motor Corporation since June 2015 and serves as its Executive General Manager of Motorcycle Company. He was Chief Operating Officer of Suzuki Motor Cor ...


Board Members

NamePositionTenureCompensationOwnership
Toshihiro Suzuki
President3.7yrsno data0.015% ¥3.1m
Osamu Honda
Senior Technical Executive & Director0yrsno data0.0095% ¥1.9m
Masahiko Nagao
Managing Officer4.7yrsno data0.0012% ¥249.8k
Sakutaro Tanino
Outside Director7.7yrsno datano data
Osamu Suzuki
Chairman of the Board0yrsJP¥174.00m0.072% ¥14.4m
Toyokazu Sugimoto
Audit & Supervisory Board Member0yrsno data0.00062% ¥124.9k
Yasuhito Harayama
Vice Chairman4.7yrsno data0.0041% ¥830.0k
Norio Tanaka
Outside Audit & Supervisory Board Member7.7yrsno data0.00062% ¥124.9k
Masakazu Iguchi
Outside Director7.7yrsno data0.00041% ¥82.6k
Masato Kasai
Audit & Supervisory Board Member0yrsno data0.00082% ¥165.2k

6.2yrs

Average Tenure

75.5yo

Average Age

Experienced Board: SUK's board of directors are considered experienced (6.2 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

Suzuki Motor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suzuki Motor Corporation
  • Ticker: SUK
  • Exchange: DB
  • Founded: 1909
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: JP¥2.393t
  • Listing Market Cap: JP¥20.145b
  • Shares outstanding: 485.33m
  • Website: https://www.globalsuzuki.com

Number of Employees


Location

  • Suzuki Motor Corporation
  • 300 Takatsuka-cho
  • Minami-Ku
  • Hamamatsu
  • Shizuoka
  • 432-8611
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SZKM.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
7269TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
SUKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
SZKM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Suzuki Motor Corporation manufactures and sells automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, all-terrain vehicles, outboard motors, motorized wheelchairs, electro senior vehicles, and houses. The company was founded in 1909 and is headquartered in Hamamatsu, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 21:31
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.