DB:1TK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

THK Co., Ltd. manufactures and supplies machinery components worldwide.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1TK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

1TK

-0.7%

DE Machinery

1.5%

DE Market


1 Year Return

-2.7%

1TK

0.6%

DE Machinery

6.4%

DE Market

Return vs Industry: 1TK underperformed the German Machinery industry which returned 0.6% over the past year.

Return vs Market: 1TK underperformed the German Market which returned 6.4% over the past year.


Shareholder returns

1TKIndustryMarket
7 Day-3.6%-0.7%1.5%
30 Day-15.5%4.4%-0.6%
90 Day-16.2%19.2%11.0%
1 Year-2.1%-2.7%1.6%0.6%8.7%6.4%
3 Year-22.6%-27.5%-29.4%-33.6%5.7%-2.7%
5 Year31.9%18.3%-4.9%-14.5%14.8%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1TK (€18.6) is trading above our estimate of fair value (€15.85)

Significantly Below Fair Value: 1TK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1TK is unprofitable, so we can't compare its PE Ratio to the DE Machinery industry average.

PE vs Market: 1TK is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1TK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1TK is good value based on its PB Ratio (1.1x) compared to the DE Machinery industry average (1.4x).


Next Steps

Future Growth

How is THK forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1TK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: 1TK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1TK's is expected to become profitable in the next 3 years.

Revenue vs Market: 1TK's revenue (11.8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 1TK's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1TK's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has THK performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1TK is currently unprofitable.

Growing Profit Margin: 1TK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1TK is unprofitable, and losses have increased over the past 5 years at a rate of 3.8% per year.

Accelerating Growth: Unable to compare 1TK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1TK is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-31.7%).


Return on Equity

High ROE: 1TK has a negative Return on Equity (-0.77%), as it is currently unprofitable.


Next Steps

Financial Health

How is THK's financial position?


Financial Position Analysis

Short Term Liabilities: 1TK's short term assets (¥264.1B) exceed its short term liabilities (¥68.5B).

Long Term Liabilities: 1TK's short term assets (¥264.1B) exceed its long term liabilities (¥106.7B).


Debt to Equity History and Analysis

Debt Level: 1TK's debt to equity ratio (30.8%) is considered satisfactory.

Reducing Debt: 1TK's debt to equity ratio has increased from 24.1% to 30.8% over the past 5 years.

Debt Coverage: 1TK's debt is well covered by operating cash flow (34.3%).

Interest Coverage: 1TK is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is THK current dividend yield, its reliability and sustainability?

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1TK's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: 1TK's dividend (0.64%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: 1TK is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: 1TK is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1TK is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1TK's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Akihiro Teramachi (69 yo)

no data

Tenure

JP¥157,000,000

Compensation

Mr. Akihiro Teramachi serves as the Chief Executive Officer of THK Co., Ltd. and has been its President since January 1997. Mr. Teramachi serves as Chairman of Nano Control Co., Ltd., Talk System Co., Ltd. ...


CEO Compensation Analysis

Compensation vs Market: Akihiro's total compensation ($USD1.49M) is below average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Akihiro's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Akihiro Teramachi
CEO, President & Director no dataJP¥157.00m2.68%
¥ 64.1m
Hiroshi Imano
CFO, Executive VP & Director8.17yrsno data0.0024%
¥ 56.6k
Katsumi Fujita
Head of Human Resources & General Affairs Departmentno datano datano data
Toshihiro Teramachi
Executive VP8.17yrsJP¥102.00m0.079%
¥ 1.9m
Masato Sawada
Managing Exec. Officer4.75yrsno datano data
Takashi Okubo
Managing Executive Officerno datano datano data
Nobuyuki Maki
Senior Managing Executive Officer10.17yrsno data0.0024%
¥ 56.6k
Tetsuya Hayashida
Managing Executive Officer & Special Appointive Officer to President3.17yrsno datano data
Junji Shimomaki
Managing Exec. Officer4.17yrsno data0.0063%
¥ 151.0k
Takanobu Hoshino
Managing Exec. Officer & GM of IMT Division - Industrial Machinery Headquartersno datano datano data
Kaoru Hoshide
Managing Executive Officer & Senior GM of Engineering Division - Industrial Machinery Headquartersno datano datano data
Akihiko Kambe
Managing Exec. Officer & Senior GM of Production Div - Industrial Machinery Headquarters4.08yrsno datano data

4.5yrs

Average Tenure

64yo

Average Age

Experienced Management: 1TK's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Akihiro Teramachi
CEO, President & Director no dataJP¥157.00m2.68%
¥ 64.1m
Hiroshi Imano
CFO, Executive VP & Director8.17yrsno data0.0024%
¥ 56.6k
Toshihiro Teramachi
Executive VP8.17yrsJP¥102.00m0.079%
¥ 1.9m
Nobuyuki Maki
Senior Managing Executive Officer10.17yrsno data0.0024%
¥ 56.6k
Junji Shimomaki
Managing Exec. Officer4.17yrsno data0.0063%
¥ 151.0k
Takashi Teramachi
Senior Managing Exec. Officer6.17yrsno data0.0016%
¥ 37.7k
Junichi Sakai
Director16.17yrsno data0.0032%
¥ 75.5k
Masakatsu Hioki
Independent Outside Director4.17yrsno data0.00079%
¥ 18.9k
Masaaki Kainosho
Independent Outside Director8.17yrsno data0.0024%
¥ 56.6k
Tomitoshi Omura
Independent Outside Director4.17yrsno data0.00079%
¥ 18.9k
Yoshiki Ueda
Independent Outside Director4.17yrsno data0.00079%
¥ 18.9k

7.2yrs

Average Tenure

67yo

Average Age

Experienced Board: 1TK's board of directors are considered experienced (7.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: THK Co., Ltd.
  • Ticker: 1TK
  • Exchange: DB
  • Founded: 1971
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥298.572b
  • Listing Market Cap: JP¥2.389b
  • Shares outstanding: 126.57m
  • Website: https://www.thk.com

Number of Employees


Location

  • THK Co., Ltd.
  • 2-12-10
  • Shibaura
  • Tokyo
  • 108-8506
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6481TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
THKL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
1TKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
THKL.YOTCPK (Pink Sheets LLC)UNSPONSOD ADRUSUSDOct 2008

Biography

THK Co., Ltd. manufactures and supplies machinery components worldwide. It provides linear motion (LM) guides, spline nuts, LM strokes, cross roller guides, linear ball slides, flat rollers, slide rails, L ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 20:46
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.