DB:NI9

Stock Analysis Report

Nippon Sheet Glass Company

Executive Summary

Nippon Sheet Glass Company, Limited manufactures and sells glass and glazing products worldwide.

Rewards

Trading at 64.8% below its fair value

Earnings are forecast to grow 36.95% per year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Profit margins (0.5%) are lower than last year (1.4%)



Snowflake Analysis

Very undervalued with moderate growth potential.


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Share Price & News

How has Nippon Sheet Glass Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NI9 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

NI9

-2.2%

DE Building

0.3%

DE Market


1 Year Return

-29.9%

NI9

10.1%

DE Building

13.8%

DE Market

Return vs Industry: NI9 underperformed the German Building industry which returned 9.8% over the past year.

Return vs Market: NI9 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

NI9IndustryMarket
7 Day0.9%-2.2%0.3%
30 Day-4.4%-0.8%1.3%
90 Day-1.8%4.3%5.2%
1 Year-28.3%-29.9%14.2%10.1%17.4%13.8%
3 Year-23.8%-27.9%21.5%9.0%15.9%5.7%
5 Year-28.1%-32.0%84.0%60.8%27.9%10.6%

Price Volatility Vs. Market

How volatile is Nippon Sheet Glass Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nippon Sheet Glass Company undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NI9 (€5.4) is trading below our estimate of fair value (€15.33)

Significantly Below Fair Value: NI9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NI9 is good value based on its PE Ratio (19.9x) compared to the Building industry average (20.5x).

PE vs Market: NI9 is good value based on its PE Ratio (19.9x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: NI9 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: NI9 is good value based on its PB Ratio (0.7x) compared to the DE Building industry average (1.3x).


Next Steps

Future Growth

How is Nippon Sheet Glass Company forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NI9's forecast earnings growth (37% per year) is above the savings rate (-0.4%).

Earnings vs Market: NI9's earnings (37% 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: NI9's revenue (0.4% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: NI9's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NI9's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Nippon Sheet Glass Company performed over the past 5 years?

36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NI9 has high quality earnings.

Growing Profit Margin: NI9's current net profit margins (0.5%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: NI9 has become profitable over the past 5 years, growing earnings by 36.9% per year.

Accelerating Growth: NI9's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NI9 had negative earnings growth (-64.8%) over the past year, making it difficult to compare to the Building industry average (-1.1%).


Return on Equity

High ROE: NI9's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nippon Sheet Glass Company's financial position?


Financial Position Analysis

Short Term Liabilities: NI9's short term assets (¥240.1B) exceed its short term liabilities (¥193.0B).

Long Term Liabilities: NI9's short term assets (¥240.1B) do not cover its long term liabilities (¥481.6B).


Debt to Equity History and Analysis

Debt Level: NI9's debt to equity ratio (425.5%) is considered high.

Reducing Debt: NI9's debt to equity ratio has increased from 241.3% to 425.5% over the past 5 years.

Debt Coverage: NI9's debt is not well covered by operating cash flow (6.3%).

Interest Coverage: NI9's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: NI9 has a high level of physical assets or inventory.

Debt Coverage by Assets: NI9's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Nippon Sheet Glass Company's current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nippon Sheet Glass Company before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.4%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: NI9's dividend (2.96%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: NI9's dividend (2.96%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: NI9's dividend payments have been volatile in the past 10 years.

Growing Dividend: NI9's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59%), NI9's dividend payments are 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 Nippon Sheet Glass Company's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Shigeki Mori (61yo)

4.8yrs

Tenure

0

Mr. Shigeki Mori serves as the Chief Executive Officer, President and Representative Executive Officer at Nippon Sheet Glass Co., Ltd. (NSG Group) and serves as its Director. Mr. Mori served as Head of Tec ...


Management Age and Tenure

2.9yrs

Average Tenure

60.5yo

Average Age

Experienced Management: NI9's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

63yo

Average Age

Experienced Board: NI9's board of directors are considered experienced (3.6 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

  • Mike Greenall (55yo)

    CTO & Executive Officer

    • Tenure: 2yrs
  • Clemens Miller (60yo)

    Representative Executive Officer

    • Compensation: JP¥114.00m
  • Koichi Hiyoshi

    Senior Executive Officer

    • Paul Ravenscroft

      Head of Mergers & Acquisitions and Corporate Officer

      • Kenichi Morooka (63yo)

        Representative Executive Officer

        • Tenure: 6.6yrs
      • Milena Stanisci

        Head of Manufacturing Excellence

        • Phil Wilkinson

          Global Head of Automotive AGR SBU & Senior Executive Officer

          • Alan Graham

            Chief Compliance Officer

            • Shigeki Mori (61yo)

              Representative Executive Officer

              • Tenure: 4.8yrs
            • Yutaka Nakashima

              Chief Human Resources Officer & Executive Officer

              • Tenure: 1yrs

            Board Members

            • Yuji Takei (55yo)

              External Director

              • Tenure: 2.8yrs
            • Yasuyuki Kimoto (70yo)

              External Director

              • Tenure: 3.6yrs
            • Toshikuni Yamazaki (73yo)

              External Director

              • Tenure: 4.6yrs
            • Masatoshi Matsuzaki (69yo)

              External Director

              • Tenure: 3.6yrs
            • Clemens Miller (60yo)

              Representative Executive Officer

              • Compensation: JP¥114.00m
            • Kenichi Morooka (63yo)

              Representative Executive Officer

              • Tenure: 6.6yrs
            • Shigeki Mori (61yo)

              Representative Executive Officer

              • Tenure: 4.8yrs
            • Günter Zorn (66yo)

              Independent Chairman

              • Tenure: 3.6yrs
            • Jörg Raupach Sumiya (58yo)

              Independent Director

              • Tenure: 0.6yrs

            Company Information

            Nippon Sheet Glass Company, Limited's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Nippon Sheet Glass Company, Limited
            • Ticker: NI9
            • Exchange: DB
            • Founded: 1918
            • Industry: Building Products
            • Sector: Capital Goods
            • Market Cap: JP¥60.510b
            • Listing Market Cap: JP¥501.633m
            • Shares outstanding: 90.58m
            • Website: https://www.nsg.com

            Number of Employees


            Location

            • Nippon Sheet Glass Company, Limited
            • Sumitomo Fudosan Mita Twin Building
            • West Wing
            • Tokyo
            • 108-6321
            • Japan

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            5202TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
            NPSG.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
            NI9DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
            NPSG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

            Biography

            Nippon Sheet Glass Company, Limited manufactures and sells glass and glazing products worldwide. The company operates through Architectural, Automotive, Technical Glass, and Other segments. It offers architectural products, including solar control, thermal insulation, fire Protection, noise control, safety/security, self-cleaning, decoration, and solar energy glasses; glass systems; and low-iron float, very thin float, curved glass, and switchable glasses under the Pilkington brand. The company also provides automotive products, such as original equipment glazing systems to vehicle manufacturers; aftermarket glass replacement products; and glazing solutions for transport vehicles. In addition, Nippon Sheet Glass Company, Limited offers functional filler products under the MICROGLAS, METASHINE, FLEKA, and GLASFLAKE names; AGM separator, a component for valve regulated lead-acid batteries; PE separators to isolate electrodes, as well as to protect active materials of anode for sli and industrial batteries; glass mat for flooded-type batteries; and sleeve tubes used for an anode of clad type lead-acid batteries. Further, it provides glass cords and curlsorbers for industrial applications; SELFOC lens arrays and micro lenses; SELGUIDE, a light source for image scanning; Planar SELGUIDE, a surface light source; ultra-fine flat glasses, film-coated glasses for liquid crystal displays (LCDs), glasses for PDP front filters, and LCD modules; and optical fiber fluorescence detectors, as well as nanostructured optical elements on glass substrate. The company was formerly known as America Japan Sheet Glass Co., Ltd. and changed its name to Nippon Sheet Glass Company, Limited in 1931. Nippon Sheet Glass Company, Limited was founded in 1918 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 Analysis2020/01/26 21:46
            End of Day Share Price2020/01/24 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.