DB:MK2A

Stock Analysis Report

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Executive Summary

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, rest of Asia, Central and South America, Oceania, and the Middle East and Africa.

Rewards

Earnings are forecast to grow 11.65% per year

Risk Analysis

No risks detected for MK2A from our risk checks.


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MK2A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

MK2A

3.5%

DE Machinery

2.7%

DE Market


1 Year Return

45.1%

MK2A

6.7%

DE Machinery

10.3%

DE Market

Return vs Industry: MK2A exceeded the German Machinery industry which returned 6.7% over the past year.

Return vs Market: MK2A exceeded the German Market which returned 10.3% over the past year.


Shareholder returns

MK2AIndustryMarket
7 Day4.4%3.5%2.7%
30 Day14.5%6.6%1.9%
90 Day31.9%26.3%17.0%
1 Year47.5%45.1%7.8%6.7%12.8%10.3%
3 Year23.1%17.8%-27.3%-31.5%7.1%-1.4%
5 Year51.7%41.9%-1.6%-11.5%18.2%2.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

29.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MK2A (€38) is trading above our estimate of fair value (€7.71)

Significantly Below Fair Value: MK2A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MK2A is poor value based on its PE Ratio (29.1x) compared to the DE Machinery industry average (24.2x).

PE vs Market: MK2A is poor value based on its PE Ratio (29.1x) compared to the German market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: MK2A is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: MK2A is overvalued based on its PB Ratio (2.3x) compared to the DE Machinery industry average (1.4x).


Next Steps

Future Growth

How is Makita forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MK2A's forecast earnings growth (11.6% per year) is above the savings rate (0.2%).

Earnings vs Market: MK2A's earnings (11.6% per year) are forecast to grow slower than the German market (24.7% per year).

High Growth Earnings: MK2A's earnings are forecast to grow, but not significantly.

Revenue vs Market: MK2A's revenue (6.2% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: MK2A's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MK2A's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has Makita performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MK2A has high quality earnings.

Growing Profit Margin: MK2A's current net profit margins (9.1%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: MK2A's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: MK2A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MK2A had negative earnings growth (-17%) over the past year, making it difficult to compare to the Machinery industry average (-33.3%).


Return on Equity

High ROE: MK2A's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Makita's financial position?


Financial Position Analysis

Short Term Liabilities: MK2A's short term assets (¥460.1B) exceed its short term liabilities (¥84.5B).

Long Term Liabilities: MK2A's short term assets (¥460.1B) exceed its long term liabilities (¥21.9B).


Debt to Equity History and Analysis

Debt Level: MK2A's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: MK2A's debt to equity ratio has increased from 1% to 1.4% over the past 5 years.

Debt Coverage: MK2A's debt is well covered by operating cash flow (848.9%).

Interest Coverage: MK2A earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.10%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MK2A's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.22%).

High Dividend: MK2A's dividend (1.1%) is low compared to the top 25% of dividend payers in the German market (3.77%).


Stability and Growth of Payments

Stable Dividend: MK2A's dividend payments have been volatile in the past 10 years.

Growing Dividend: MK2A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.9%), MK2A'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

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

9.2yrs

Average management tenure


CEO

Munetoshi Goto

no data

Tenure

Mr. Munetoshi Goto serves as President & Representative Director of Makita Corporation and served as its General Manager of International Sales Headquarters, Corporate Officer.


Leadership Team

NamePositionTenureCompensationOwnership
Munetoshi Goto
President & Representative Directorno datano data0.18%
¥ 18.8m
Tadayoshi Torii
Managing Corporate Officer19.17yrsno data0.022%
¥ 2.3m
Hisayoshi Niwa
Corporate Officer17.17yrsno data0.0096%
¥ 1.0m
Shinichiro Tomita
Corporate Officer13.17yrsno data0.0066%
¥ 693.0k
Tetsuhisa Kaneko
Corporate Officer13.17yrsno data0.0085%
¥ 885.3k
Tomoyuki Ota
Corporate Officerno datano data0.0063%
¥ 654.3k
Takashi Omote
Corporate Officerno datano data0.0033%
¥ 346.0k
Takashi Tsuchiya
Corporate Officer5.17yrsno data0.0070%
¥ 731.6k
Masaki Yoshida
Corporate Officer5.17yrsno data0.0037%
¥ 384.6k
Tomoharu Yasuda
Corporate Officer and Assistant GM of Domestic Sales & Marketing Headquarters for Tokyo Area5.17yrsno datano data
Shinichi Sakamoto
Corporate Officer & In charge of Asia Sales5.17yrsno datano data
Hideki Shimazoe
Corporate Officer & Assistant GM of Domestic Sales Marketing Headquarters - Nagoya Area5.17yrsno datano data

9.2yrs

Average Tenure

70yo

Average Age

Experienced Management: MK2A's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Munetoshi Goto
President & Representative Directorno datano data0.18%
¥ 18.8m
Tadayoshi Torii
Managing Corporate Officer19.17yrsno data0.022%
¥ 2.3m
Hisayoshi Niwa
Corporate Officer17.17yrsno data0.0096%
¥ 1.0m
Shinichiro Tomita
Corporate Officer13.17yrsno data0.0066%
¥ 693.0k
Tetsuhisa Kaneko
Corporate Officer13.17yrsno data0.0085%
¥ 885.3k
Tomoyuki Ota
Corporate Officerno datano data0.0063%
¥ 654.3k
Takashi Omote
Corporate Officerno datano data0.0033%
¥ 346.0k
Takashi Tsuchiya
Corporate Officer5.17yrsno data0.0070%
¥ 731.6k
Masaki Yoshida
Corporate Officer5.17yrsno data0.0037%
¥ 384.6k
Yukihiro Otsu
Corporate Officerno datano data0.0029%
¥ 308.3k
Masahiko Goto
Chairman of the Boardno datano data1.06%
¥ 110.3m
Akiyoshi Morita
Independent Outside Director7.17yrsno datano data

13.2yrs

Average Tenure

71yo

Average Age

Experienced Board: MK2A's board of directors are seasoned and experienced ( 13.2 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

Makita Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Makita Corporation
  • Ticker: MK2A
  • Exchange: DB
  • Founded: 1915
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥1.310t
  • Listing Market Cap: JP¥10.452b
  • Shares outstanding: 271.52m
  • Website: https://www.makita.co.jp

Number of Employees


Location

  • Makita Corporation
  • 3-11-8, Sumiyoshi-cho
  • Anjo
  • Aichi
  • 446-8502
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKTA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 1975
6586TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 1975
MKEW.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1975
MK2ADB (Deutsche Boerse AG)YesCommon StockDEEURDec 1975

Biography

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, rest of Asia, Central and South Ameri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 21:28
End of Day Share Price2020/08/12 00:00
Earnings2020/06/30
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.