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Resona Holdings

Executive Summary

Resona Holdings, Inc., through its subsidiaries, provides banking products and services in Japan, Asia, the United States, and internationally.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Resona Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DW1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

DW1

15.1%

DE Banks

6.8%

DE Market


1 Year Return

-16.4%

DW1

-14.2%

DE Banks

5.6%

DE Market

Return vs Industry: DW1 exceeded the German Banks industry which returned -20.3% over the past year.

Return vs Market: DW1 underperformed the German Market which returned 4.1% over the past year.


Shareholder returns

DW1IndustryMarket
7 Day-3.7%15.1%6.8%
30 Day11.4%25.9%14.0%
90 Day1.3%5.6%7.5%
1 Year-12.0%-16.4%-13.6%-14.2%7.4%5.6%
3 Year-25.5%-34.3%-36.7%-39.4%0.3%-7.3%
5 Year-22.6%-36.5%-31.7%-44.9%12.4%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Resona Holdings undervalued compared to its fair value and its price relative to the market?

39.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DW1 (€3.1) is trading below our estimate of fair value (€5.23)

Significantly Below Fair Value: DW1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DW1 is good value based on its PE Ratio (5.7x) compared to the Banks industry average (19.3x).

PE vs Market: DW1 is good value based on its PE Ratio (5.7x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: DW1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DW1 is good value based on its PB Ratio (0.4x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Resona Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DW1's earnings are forecast to decline over the next 3 years (-3.3% per year).

Earnings vs Market: DW1's earnings are forecast to decline over the next 3 years (-3.3% per year).

High Growth Earnings: DW1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DW1's revenue is expected to decline over the next 3 years (-9.4% per year).

High Growth Revenue: DW1's revenue is forecast to decline over the next 3 years (-9.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DW1's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Resona Holdings performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DW1 has high quality earnings.

Growing Profit Margin: DW1's current net profit margins (18.6%) are lower than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: DW1's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: DW1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DW1 had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Banks industry average (4%).


Return on Equity

High ROE: DW1's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Resona Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: DW1's Assets to Equity ratio (26.1x) is very high.

Allowance for Bad Loans: DW1 has a low allowance for bad loans (37%).

Low Risk Liabilities: 93% of DW1's liabilities are made up of primarily low risk sources of funding.

Loan Level: DW1 has an appropriate level of Loans to Assets ratio (61%).

Low Risk Deposits: DW1's Loans to Deposits ratio (69%) is appropriate.

Level of Bad Loans: DW1 has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

What is Resona Holdings's current dividend yield, its reliability and sustainability?

5.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DW1's dividend (5.51%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: DW1's dividend (5.51%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

Stable Dividend: DW1's dividends per share have been stable in the past 10 years.

Growing Dividend: DW1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.7%), DW1'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?

1.2yrs

Average management tenure


CEO

Kazuhiro Higashi (62yo)

7.17yrs

Tenure

Mr. Kazuhiro Higashi was the President at Resona Holdings, Inc. since April 1, 2013 until April 1, 2020, Representative Executive Officer, in charge of Corporate Governance Office since April 2018 and has  ...


Leadership Team

NamePositionTenureCompensationOwnership
Kazuhiro Higashi
CEO, Representative Executive Officer & Chairman7.17yrsno data0.0044% ¥316.3k
Masahiro Minami
President1yrno data0.00029% ¥20.8k
Jozi Morikagi
Chief Manager of International Divisionno datano datano data
Kazuyo Shinya
Executive Officerno datano data0.00046% ¥33.1k
Masanori Hirokawa
Executive Officer2.17yrsno data0.00040% ¥28.8k
Shigeki Ishida
Executive Officerno datano data0.00013% ¥9.3k
Hisahiko Oikawa
Executive Officerno datano data0.00015% ¥10.8k
Ichiko Shinada
Executive Officerno datano data0.00010% ¥7.2k
Satoshi Fukuoka
Executive Officer & President - Saitama Resona Bank0.17yrno data0.00035% ¥25.2k

1.2yrs

Average Tenure

54yo

Average Age

Experienced Management: DW1's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kazuhiro Higashi
CEO, Representative Executive Officer & Chairman7.17yrsno data0.0044% ¥316.3k
Masahiro Minami
President1yrno data0.00029% ¥20.8k
Kaoru Isono
Director11yrsno data0.0017% ¥120.8k
Baba Chiharu
Outside Independent Director3yrsno data0.00037% ¥26.6k
Mitsudo Urano
Outside Independent Director7yrsno data0.00013% ¥9.3k
Kimie Iwata
Outside Independent Director1yrno datano data
Tadamitsu Matsui
Outside Independent Director6yrsno data0.00090% ¥64.7k
Hidehiko Sato
Outside Independent Director5yrsno data0.00033% ¥23.7k

5.0yrs

Average Tenure

69.5yo

Average Age

Experienced Board: DW1's board of directors are considered experienced (5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Resona Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Resona Holdings, Inc.
  • Ticker: DW1
  • Exchange: DB
  • Founded: 1918
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: JP¥892.808b
  • Listing Market Cap: JP¥7.190b
  • Shares outstanding: 2.30b
  • Website: https://www.resona-gr.co.jp

Number of Employees


Location

  • Resona Holdings, Inc.
  • Fukagawa Gatharia W2 Building
  • 1-5-65 Kiba
  • Tokyo
  • 135-8582
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSNH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2001
8308TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2001
DW1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2001

Biography

Resona Holdings, Inc., through its subsidiaries, provides banking products and services in Japan, Asia, the United States, and internationally. The company offers banking and trust banking, credit guarantee, collection of bills and receivables, factoring, and credit card administration and guarantee facilities. It is also involved in the private equity and financing businesses; and provision of business consulting and investment management, business process outsourcing and placement, general leasing, and system development services. The company offers its products and services to individuals and corporate customers. As of March 31, 2019, it operated 837 branches in Japan, as well as various branches in Asia and the United States. The company was founded in 1918 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 22:59
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.