DB:5S2

Stock Analysis Report

SHO-BOND HoldingsLtd

Executive Summary

SHO-BOND Holdings Co.,Ltd. engages in repairing and reinforcing social infrastructures in Japan.

Rewards

Earnings are forecast to grow 5.71% per year

Earnings grew by 9.1% over the past year

Risk Analysis

Dividend of 1.64% is not well covered by earnings



Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has SHO-BOND HoldingsLtd's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5S2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

5S2

4.3%

DE Construction

1.7%

DE Market


1 Year Return

18.5%

5S2

-14.6%

DE Construction

15.0%

DE Market

Return vs Industry: 5S2 exceeded the German Construction industry which returned -14.6% over the past year.

Return vs Market: 5S2 exceeded the German Market which returned 15% over the past year.


Shareholder returns

5S2IndustryMarket
7 Day-1.6%4.3%1.7%
30 Day1.6%-1.6%1.4%
90 Day6.2%1.4%3.3%
1 Year20.8%18.5%-11.0%-14.6%18.5%15.0%
3 Year92.8%82.8%-12.4%-18.9%17.1%6.9%
5 Year123.2%103.6%78.1%58.1%24.3%7.3%

Price Volatility Vs. Market

How volatile is SHO-BOND HoldingsLtd's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SHO-BOND HoldingsLtd undervalued compared to its fair value and its price relative to the market?

29.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5S2 (€37.6) is trading above our estimate of fair value (€27.33)

Significantly Below Fair Value: 5S2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5S2 is poor value based on its PE Ratio (29.7x) compared to the Construction industry average (12.3x).

PE vs Market: 5S2 is poor value based on its PE Ratio (29.7x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 5S2 is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: 5S2 is overvalued based on its PB Ratio (3x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is SHO-BOND HoldingsLtd forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5S2's forecast earnings growth (5.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 5S2's earnings (5.7% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 5S2's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5S2's revenue (4.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 5S2's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5S2's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has SHO-BOND HoldingsLtd performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5S2 has high quality earnings.

Growing Profit Margin: 5S2's current net profit margins (13.3%) are higher than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: 5S2's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: 5S2's earnings growth over the past year (9.1%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: 5S2 earnings growth over the past year (9.1%) exceeded the Construction industry 5.6%.


Return on Equity

High ROE: 5S2's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SHO-BOND HoldingsLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 5S2's short term assets (¥60.5B) exceed its short term liabilities (¥12.0B).

Long Term Liabilities: 5S2's short term assets (¥60.5B) exceed its long term liabilities (¥2.2B).


Debt to Equity History and Analysis

Debt Level: 5S2 is debt free.

Reducing Debt: 5S2 has not had any debt for past 5 years.

Debt Coverage: 5S2 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 5S2 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 5S2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 5S2's debt is covered by short term assets.


Next Steps

Dividend

What is SHO-BOND HoldingsLtd's current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Upcoming Dividend Payment

Purchase SHO-BOND HoldingsLtd before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.3%markettop25%3.6%industryaverage3.5%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: 5S2's dividend (1.64%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: 5S2's dividend (1.64%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: 5S2's dividends per share have been stable in the past 10 years.

Growing Dividend: 5S2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.6%), 5S2'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?

7.4yrs

Average board tenure


CEO

Tatsuya Kishimoto (56yo)

0

Mr. Tatsuya Kishimoto serves as President SHO-BOND Holdings Co., Ltd. and has been Senior Managing Director of Sho-Bond Construction, Ltd. since July 2012. Mr. Kishimoto Joined Sho-Bond Construction, Ltd.  ...


Board Members

NamePositionTenureCompensationOwnership
Tatsuya Kishimoto
President & Representative Director0yrsno data0.026% ¥535.2k
Shunya Tojo
Head of Public Relations Management and Director4.4yrsno data0.015% ¥305.8k
Koyo Takeo
Manager of Engineering Public Relations Department & Director 7.6yrsno data0.022% ¥458.6k
Soshi Fujii
Chairman of the Board of Directors0yrsno datano data
Shigeaki Suzuki
Director8.4yrsno data0.026% ¥535.2k
Satoru Miura
External Director0yrsno datano data
Akira Hongo
External Director0yrsno datano data
Reiko Kuwano
External Director0yrsno datano data
Yasuhiro Sekiguchi
Director0.08yrsno datano data

7.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 5S2's board of directors are considered experienced (7.4 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

SHO-BOND Holdings Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SHO-BOND Holdings Co.,Ltd.
  • Ticker: 5S2
  • Exchange: DB
  • Founded: 2008
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: JP¥244.918b
  • Listing Market Cap: JP¥2.058b
  • Shares outstanding: 53.83m
  • Website: https://www.sho-bondhd.jp

Number of Employees


Location

  • SHO-BOND Holdings Co.,Ltd.
  • 7-8, Nihombashi Hakozaki-cho
  • Chuo-ku
  • Tokyo
  • 103-0015
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1414TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 2008
5S2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2008
SBHC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2008

Biography

SHO-BOND Holdings Co.,Ltd. engages in repairing and reinforcing social infrastructures in Japan. The company is involved in civil engineering and construction work contracting, design, and consulting; and provision of repair and reinforcement services for bridges, roads, and tunnels, as well as various structures and residential buildings. It also manufactures and sells various construction materials. The company was founded in 2008 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 Analysis2020/02/15 21:57
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.