DB:NB5

Stock Analysis Report

Executive Summary

Nitto Boseki Co., Ltd. engages in the manufacture, processing, and sale of textile products and textile-related industrial goods, rock wool and building materials, glass fiber products, and specialty chemicals and medical products in Japan and internationally.

Rewards

Earnings are forecast to grow 22.6% per year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NB5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

NB5

-1.6%

DE Building

1.0%

DE Market


1 Year Return

140.2%

NB5

8.1%

DE Building

16.4%

DE Market

Return vs Industry: NB5 exceeded the German Building industry which returned 8.1% over the past year.

Return vs Market: NB5 exceeded the German Market which returned 16.4% over the past year.


Shareholder returns

NB5IndustryMarket
7 Day6.1%-1.6%1.0%
30 Day14.5%0.4%-0.4%
90 Day34.7%7.6%6.5%
1 Year144.0%140.2%12.1%8.1%20.0%16.4%
3 Year92.1%83.4%24.3%11.3%19.9%9.3%
5 Year188.3%165.4%81.7%58.9%40.8%21.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

29.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NB5 (€34.8) is trading above our estimate of fair value (€11.12)

Significantly Below Fair Value: NB5 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NB5 is poor value based on its PE Ratio (29.4x) compared to the Building industry average (18.8x).

PE vs Market: NB5 is poor value based on its PE Ratio (29.4x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: NB5 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NB5 is overvalued based on its PB Ratio (1.8x) compared to the DE Building industry average (1.3x).


Next Steps

Future Growth

How is Nitto Boseki forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NB5's forecast earnings growth (22.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: NB5's earnings (22.6% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NB5's revenue (6.8% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: NB5's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NB5's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Nitto Boseki performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NB5 has high quality earnings.

Growing Profit Margin: NB5's current net profit margins (6.6%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: NB5's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: NB5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NB5 had negative earnings growth (-25.1%) over the past year, making it difficult to compare to the Building industry average (-1.1%).


Return on Equity

High ROE: NB5's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nitto Boseki's financial position?


Financial Position Analysis

Short Term Liabilities: NB5's short term assets (¥82.4B) exceed its short term liabilities (¥33.4B).

Long Term Liabilities: NB5's short term assets (¥82.4B) exceed its long term liabilities (¥43.4B).


Debt to Equity History and Analysis

Debt Level: NB5's debt to equity ratio (41%) is considered high.

Reducing Debt: NB5's debt to equity ratio has reduced from 46.7% to 41% over the past 5 years.

Debt Coverage: NB5's debt is well covered by operating cash flow (22%).

Interest Coverage: NB5 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NB5 has a high level of physical assets or inventory.

Debt Coverage by Assets: NB5's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

0.95%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.6%industryaverage2.5%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: NB5's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: NB5's dividend (0.96%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: NB5's dividends per share have been stable in the past 10 years.

Growing Dividend: NB5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.1%), NB5'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

Management

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

2.7yrs

Average management tenure


CEO

Yuichi Tsuji (60yo)

3.8yrs

Tenure

0

Mr. Yuichi Tsuji has been the Chief Executive Officer of Nitto Boseki Co. Ltd. since February 4th 2016. Mr. Tsuji served as an Executive Officer and Manager of Corporate Planning Department of Nitto Boseki ...


Management Age and Tenure

2.7yrs

Average Tenure

60yo

Average Age

Experienced Management: NB5's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NB5's board of directors are considered experienced (5.5 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

  • Yu Nozaki (60yo)

    Managing Executive Officer & Director

    • Tenure: 2.4yrs
  • Yuichi Tsuji (60yo)

    CEO & Representative Director

    • Tenure: 3.8yrs
  • Minoru Takeuchi (56yo)

    Managing Executive Officer

    • Tenure: 2.7yrs
  • Shigeru Maeyama (58yo)

    Managing Executive Officer

    • Tenure: 2.7yrs
  • Kazuhisa Toda (61yo)

    Senior Managing Executive Officer

    • Tenure: 3.8yrs
  • Kazuyuki Utsugi

    Executive Officer & GM of Marketing Division for Glass Fiber Business Unit

    • Tenure: 5.5yrs
  • Kazuhiko Igarashi

    Executive Officer

    • Tenure: 5.7yrs
  • Hiroyuki Tada

    Executive Officer

    • Tenure: 2.7yrs
  • Hideki Ishihara

    Executive Officer

    • Tenure: 2.4yrs
  • Hideyuki Hatanaka

    Executive Officer

    • Tenure: 1.9yrs

Board Members

  • Katsumi Minamizono (77yo)

    Director

    • Tenure: 11.5yrs
  • Kunihisa Hama (85yo)

    External Director

    • Tenure: 11.5yrs
  • Toyoshi Nishizaka (61yo)

    Director

    • Tenure: 11.5yrs
  • Yu Nozaki (60yo)

    Managing Executive Officer & Director

    • Tenure: 2.4yrs
  • Yuichi Tsuji (60yo)

    CEO & Representative Director

    • Tenure: 3.8yrs
  • Hiroshi Kamibayashi (74yo)

    External Director

    • Tenure: 5.5yrs
  • Masamichi Ouchi

    External Director

    • Tenure: 4.5yrs

Company Information

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


Key Information

  • Name: Nitto Boseki Co., Ltd.
  • Ticker: NB5
  • Exchange: DB
  • Founded: 1918
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: JP¥162.383b
  • Listing Market Cap: JP¥1.346b
  • Shares outstanding: 38.80m
  • Website: https://www.nittobo.co.jp

Number of Employees


Location

  • Nitto Boseki Co., Ltd.
  • 2-4-1, Kojimachi
  • Chiyoda-ku
  • Tokyo
  • 102-8489
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3110TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NB5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Nitto Boseki Co., Ltd. engages in the manufacture, processing, and sale of textile products and textile-related industrial goods, rock wool and building materials, glass fiber products, and specialty chemi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 22:00
End of Day Share Price2019/12/10 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.