BST:2ZN

Stock Analysis Report

Executive Summary

Star Micronics Co., Ltd. produces and sells point-of-sale printers, machine tools, and precision products worldwide.


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Star Micronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2ZN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.6%

2ZN

6.7%

DE Machinery

9.1%

DE Market


1 Year Return

n/a

2ZN

-28.7%

DE Machinery

-13.1%

DE Market

Return vs Industry: Insufficient data to determine how 2ZN performed against the German Machinery industry.

Return vs Market: Insufficient data to determine how 2ZN performed against the German Market.


Shareholder returns

2ZNIndustryMarket
7 Day3.6%6.7%9.1%
30 Day-3.7%-6.1%-1.0%
90 Day-31.4%-25.0%-20.7%
1 Yearn/a-26.6%-28.7%-10.6%-13.1%
3 Yearn/a-37.8%-42.2%-10.7%-18.1%
5 Yearn/a-24.0%-32.4%-10.7%-22.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Star Micronics undervalued compared to its fair value and its price relative to the market?

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2ZN (€8.4) is trading below our estimate of fair value (€13.35)

Significantly Below Fair Value: 2ZN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2ZN is good value based on its PE Ratio (8.9x) compared to the Machinery industry average (11.4x).

PE vs Market: 2ZN is good value based on its PE Ratio (8.9x) compared to the German market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2ZN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 2ZN is good value based on its PB Ratio (0.7x) compared to the DE Machinery industry average (1.1x).


Next Steps

Future Growth

How is Star Micronics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2ZN's forecast earnings growth (10.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2ZN's earnings (10.1% per year) are forecast to grow slower than the German market (14.2% per year).

High Growth Earnings: 2ZN's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2ZN's revenue (2% per year) is forecast to grow slower than the German market (3.9% per year).

High Growth Revenue: 2ZN's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2ZN's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Star Micronics performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2ZN has high quality earnings.

Growing Profit Margin: 2ZN's current net profit margins (6.7%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: 2ZN's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: 2ZN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2ZN had negative earnings growth (-52.7%) over the past year, making it difficult to compare to the Machinery industry average (-19.9%).


Return on Equity

High ROE: 2ZN's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Star Micronics's financial position?


Financial Position Analysis

Short Term Liabilities: 2ZN's short term assets (¥56.8B) exceed its short term liabilities (¥15.9B).

Long Term Liabilities: 2ZN's short term assets (¥56.8B) exceed its long term liabilities (¥9.7B).


Debt to Equity History and Analysis

Debt Level: 2ZN's debt to equity ratio (20.7%) is considered satisfactory.

Reducing Debt: 2ZN's debt to equity ratio has increased from 4% to 20.7% over the past 5 years.

Debt Coverage: 2ZN's debt is well covered by operating cash flow (48.7%).

Interest Coverage: 2ZN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Star Micronics's current dividend yield, its reliability and sustainability?

5.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2ZN's dividend (5.52%) is higher than the bottom 25% of dividend payers in the German market (1.57%).

High Dividend: 2ZN's dividend (5.52%) is in the top 25% of dividend payers in the German market (4.68%)


Stability and Growth of Payments

Stable Dividend: 2ZN's dividends per share have been stable in the past 10 years.

Growing Dividend: 2ZN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.3%), 2ZN's dividend payments are 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?

1.3yrs

Average management tenure


CEO

Mamoru Sato (59yo)

3.08s

Tenure

Mamoru Sato has been Chief Executive Officer and President of Star Micronics Co., Ltd. since March 1, 2017. Mamoru Sato served as Managing Director at Star Micronics Co., Ltd. since May 2014 until March 1, ...


Leadership Team

NamePositionTenureCompensationOwnership
Mamoru Sato
President3.08yrsno data0.18% ¥560.9k
Masato Yamanashi
Senior Exec. Officer3.08yrsno datano data
Hiroyuki Sugiura
Senior Executive Officer3.92yrsno datano data
Yasunao Sasai
MD, GM of Machine Tools Div.0.75yrno data0.023% ¥70.1k
Kazuyoshi Terao
Executive Officer & GM of Special Products Division1.25yrsno datano data
Fumio Masuda
Executive Officer & Senior Vice GM of Machine Tools Division0.75yrno datano data
Seigo Sato
Executive Officer & Senior Vice GM of Special Products Division0.25yrno datano data

1.3yrs

Average Tenure

Experienced Management: 2ZN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mamoru Sato
President3.08yrsno data0.18% ¥560.9k
Hajime Sato
Chairman of the Board3.08yrsno data0.30% ¥929.0k
Seigo Iwasaki
Outside Directorno datano data0.020% ¥61.4k
Hide Doko
Outside Director3.92yrsno datano data
Motoki Sugimoto
Outside Director3.92yrsno datano data
Seiichi Nishikawa
Outside Director0.083yrno datano data

3.9yrs

Average Tenure

Experienced Board: 2ZN's board of directors are considered experienced (3.9 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

Star Micronics Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Star Micronics Co., Ltd.
  • Ticker: 2ZN
  • Exchange: BST
  • Founded: 1947
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥36.624b
  • Listing Market Cap: JP¥308.945m
  • Shares outstanding: 35.25m
  • Website: https://www.star-m.jp

Number of Employees


Location

  • Star Micronics Co., Ltd.
  • 20-10 Nakayoshida
  • Suruga-ku
  • Shizuoka
  • Shizuoka
  • 422-8654
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7718TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
2ZNBST (Boerse-Stuttgart)YesCommon StockDEEURJan 1992

Biography

Star Micronics Co., Ltd. produces and sells point-of-sale printers, machine tools, and precision products worldwide. It offers small printers, including thermal, dot matrix, hybrid, and portable printers; thermal and dot matrix printer mechanisms; cash drawers; control boards; peripherals; and accessories/options. The company also provides visual card readers/writers for PET/PVC cards; and machine tools comprising CNC automatic lathes, as well as related utility software to enhance the performance of machining. In addition, It offers precision products, such as wristwatch components comprising winding stems, screws, crowns, pipes, metal buttons, and insert buttons; hard disk drive parts; medical equipment components, including bone screws used in orthopedic treatments, dental implants, and reinforcing components for joints; connector components for fiber-optic cables and passive components; automobile parts, such as ABS and valve parts, etc.; probe pins; and air conditioning parts. The company was founded in 1947 and is headquartered in Shizuoka, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:31
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.