DB:DCV

Stock Analysis Report

Executive Summary

Advanex Inc., together with its subsidiaries, manufactures and sells precision springs in Japan and internationally.

Risk Analysis

Earnings have declined by -62.96% per year over past 5 years

Interest payments are not well covered by earnings

Dividend of 1.75% is not well covered by earnings

Does not have a meaningful market cap (€7B)



Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.2%

DCV

-1.1%

DE Machinery

0.5%

DE Market


1 Year Return

7.8%

DCV

-6.8%

DE Machinery

15.5%

DE Market

Return vs Industry: DCV exceeded the German Machinery industry which returned -2.6% over the past year.

Return vs Market: DCV underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

DCVIndustryMarket
7 Day-2.2%-1.1%0.5%
30 Day2.3%-1.1%1.4%
90 Day-2.2%3.2%5.3%
1 Year9.8%7.8%-3.8%-6.8%19.2%15.5%
3 Year-6.2%-10.3%-14.2%-20.3%15.7%5.5%
5 Year9.9%0.4%8.1%-4.1%27.3%10.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DCV (€13.6) is trading above our estimate of fair value (€2.07)

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


Price To Earnings Ratio

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

PE vs Market: DCV 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 DCV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DCV is good value based on its PB Ratio (1.3x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is Advanex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Advanex has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Advanex performed over the past 5 years?

-63.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCV is currently unprofitable.

Growing Profit Margin: DCV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DCV is unprofitable, and losses have increased over the past 5 years at a rate of -63% per year.

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

Earnings vs Industry: DCV is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-13.7%).


Return on Equity

High ROE: DCV has a negative Return on Equity (-3.3%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Advanex's financial position?


Financial Position Analysis

Short Term Liabilities: DCV's short term assets (¥11.5B) exceed its short term liabilities (¥10.9B).

Long Term Liabilities: DCV's short term assets (¥11.5B) exceed its long term liabilities (¥6.9B).


Debt to Equity History and Analysis

Debt Level: DCV's debt to equity ratio (193.3%) is considered high.

Reducing Debt: DCV's debt to equity ratio has increased from 91.7% to 193.3% over the past 5 years.

Debt Coverage: DCV's debt is not well covered by operating cash flow (12.4%).

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


Balance Sheet

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

Debt Coverage by Assets: DCV's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.78%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.5%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DCV's dividend (1.75%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: DCV's dividend (1.75%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: DCV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DCV's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: DCV is paying a dividend but the company is unprofitable.


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

What is the CEO of Advanex's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Tsuneo Shibano (59yo)

1.6yrs

Tenure

0

Mr. Tsuneo Shibano serves as Chairman of the Board at Advanex Inc. since June 2018 and also has been its President and Chief Operating Officer since June 2013. Mr. Shibano has been the President of Domesti ...


Management Age and Tenure

5.8yrs

Average Tenure

60yo

Average Age

Experienced Management: DCV's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

61yo

Average Age

Experienced Board: DCV's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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.


Management Team

  • Toshiya Ohno (60yo)

    Representative MD

    • Tenure: 10.6yrs
  • Seiya Kato (61yo)

    Chief of Customer Service Promotion Office

    • Tenure: 7.8yrs
  • Tsuneo Shibano (59yo)

    Chairman

    • Tenure: 1.6yrs
  • Mitsuo Kotani

    Executive Officer

    • Yoshifumi Oniyama

      Executive Officer

      • Noboru Shimamura

        Executive Officer


        Board Members

        • Toshiya Ohno (60yo)

          Representative MD

          • Tenure: 10.6yrs
        • Seiya Kato (61yo)

          Chief of Customer Service Promotion Office

          • Tenure: 7.8yrs
        • Taizo Ochi (73yo)

          Audit & Supervisory Board Member

          • Tenure: 10.6yrs
        • Tsuneo Shibano (59yo)

          Chairman

          • Tenure: 1.6yrs
        • Shigeru Wakai (67yo)

          Audit & Supervisory Board Member

          • Tenure: 8.6yrs
        • Foo Khan (73yo)

          Director

          • Tenure: 7.6yrs
        • Junichi Shukuwa (56yo)

          Audit & Supervisory Board Member

          • Tenure: 4.6yrs

        Company Information

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


        Key Information

        • Name: Advanex Inc.
        • Ticker: DCV
        • Exchange: DB
        • Founded: 1930
        • Industry: Industrial Machinery
        • Sector: Capital Goods
        • Market Cap: JP¥6.893b
        • Listing Market Cap: JP¥56.579m
        • Shares outstanding: 4.09m
        • Website: https://www.advanex.co.jp

        Number of Employees


        Location

        • Advanex Inc.
        • Asuka Tower Building
        • 6-1-1 Tabata
        • Tokyo
        • 114-8581
        • Japan

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        5998TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
        DCVDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

        Biography

        Advanex Inc., together with its subsidiaries, manufactures and sells precision springs in Japan and internationally. The company offers wire springs, including precision springs, micro springs, and wire inserts; flat springs, such as precision presses, multi formings, molding presses, and insert collars; and insert moldings. It also provides component parts comprising torque limiters and spring clutches, and other assemblies. In addition, the company designs and manufactures tools and die sets for precision deep drawing products. Further, it manufactures and sells precision deep drawing and metal stamping products; and motors. The company was formerly known as Kato Spring Works Co., Ltd. and changed its name to Advanex Inc. in July 2001. Advanex Inc. was founded in 1930 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 Analysis2020/01/22 21:58
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        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.