DB:TKK1

Stock Analysis Report

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Executive Summary

Taisei Corporation engages in the civil engineering, construction contracts, and real estate development businesses in Japan and internationally.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TKK1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

TKK1

9.5%

DE Construction

6.8%

DE Market


1 Year Return

-6.8%

TKK1

-20.4%

DE Construction

5.6%

DE Market

Return vs Industry: TKK1 exceeded the German Construction industry which returned -27% over the past year.

Return vs Market: TKK1 underperformed the German Market which returned 0.5% over the past year.


Shareholder returns

TKK1IndustryMarket
7 Day0%9.5%6.8%
30 Day13.9%26.9%14.0%
90 Day8.3%7.7%7.5%
1 Year-3.4%-6.8%-14.0%-20.4%7.4%5.6%
3 Year-12.2%-19.3%-39.8%-47.7%0.3%-7.3%
5 Year41.4%24.3%49.2%25.9%12.4%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TKK1 (€31.4) is trading below our estimate of fair value (€47.94)

Significantly Below Fair Value: TKK1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TKK1 is good value based on its PE Ratio (6.8x) compared to the Construction industry average (11.1x).

PE vs Market: TKK1 is good value based on its PE Ratio (6.8x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: TKK1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TKK1 is overvalued based on its PB Ratio (1.1x) compared to the XE Construction industry average (1x).


Next Steps

Future Growth

How is Taisei forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TKK1's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: TKK1's earnings are forecast to decline over the next 3 years (-2.5% per year).

High Growth Earnings: TKK1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TKK1's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: TKK1's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TKK1's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Taisei performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TKK1 has high quality earnings.

Growing Profit Margin: TKK1's current net profit margins (7%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: TKK1's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: TKK1's earnings growth over the past year (8.4%) is below its 5-year average (16.5% per year).

Earnings vs Industry: TKK1 earnings growth over the past year (8.4%) exceeded the Construction industry 7.3%.


Return on Equity

High ROE: TKK1's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is Taisei's financial position?


Financial Position Analysis

Short Term Liabilities: TKK1's short term assets (¥1,299.0B) exceed its short term liabilities (¥957.4B).

Long Term Liabilities: TKK1's short term assets (¥1,299.0B) exceed its long term liabilities (¥178.6B).


Debt to Equity History and Analysis

Debt Level: TKK1's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: TKK1's debt to equity ratio has reduced from 55.5% to 27.6% over the past 5 years.

Debt Coverage: TKK1's debt is well covered by operating cash flow (37.2%).

Interest Coverage: TKK1 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TKK1's dividend (3.32%) is higher than the bottom 25% of dividend payers in the German market (1.27%).

High Dividend: TKK1's dividend (3.32%) is low compared to the top 25% of dividend payers in the German market (3.86%).


Stability and Growth of Payments

Stable Dividend: TKK1's dividends per share have been stable in the past 10 years.

Growing Dividend: TKK1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.7%), TKK1'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

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

6.2yrs

Average management tenure


CEO

Yoshiyuki Murata

5.17yrs

Tenure

JP¥122,000,000

Compensation

Mr. Yoshiyuki Murata has been the Chief Executive Officer and President at Taisei Corporation since April 2015. Mr. Murata has been Representative Director at Taisei Corporation since June 2013. He joined  ...


CEO Compensation Analysis

Compensation vs Market: Yoshiyuki's total compensation ($USD1.12M) is below average for companies of similar size in the German market ($USD3.48M).

Compensation vs Earnings: Insufficient data to compare Yoshiyuki's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Yoshiyuki Murata
President5.17yrsJP¥122.00mno data
Shigeyuki Sakurai
Executive VP7yrsno data0.0048% ¥320.5k
Atsushi Yamamoto
Managing Executive Officer and Chief of Marketing & Sales Promotion Divisionno datano datano data
Kazuhiko Dai
Vice Chairman & Executive Officer9.17yrsno datano data
Yasushi Yoshinari
Managing Executive Officer and Chief of Medical & Pharmaceutical Business Division5.17yrsno datano data
Kazuhiko Hombu
Managing Executive Officer and In Charge of Technologyno datano datano data
Shigeyoshi Tanaka
EVP, Chief of Civil Engineering Division5yrsno data0.0035% ¥234.2k
Masahiro Oshima
Managing Executive Officer & Chief of Corporate Planning Officeno datano datano data
Masahiro Sakai
Executive VP & Chief of Marketing & Sales Division (Integrated)7.17yrsno datano data
Katsuyuki Kanai
Senior Managing Executive Officer & Chief of Urban Development Divisionno datano datano data

6.2yrs

Average Tenure

Experienced Management: TKK1's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yoshiyuki Murata
President5.17yrsJP¥122.00mno data
Shigeyuki Sakurai
Executive VP7yrsno data0.0048% ¥320.5k
Shigeyoshi Tanaka
EVP, Chief of Civil Engineering Division5yrsno data0.0035% ¥234.2k
Norihiko Yaguchi
Senior Managing Exe. Officer5yrsno data0.0042% ¥279.7k
Hiroshi Shirakawa
Sr. Managing Executive Officer4yrsno data0.0035% ¥234.2k
Yoshiro Aikawa
Managing Exe Officer1yrno data0.0017% ¥115.8k
Hiroshi Kimura
Managing Executive Officer1yrno data0.0017% ¥115.8k
Takashi Yamauchi
Chairman5.17yrsJP¥122.00m0.027% ¥1.8m
Atsuko Nishimura
Independent External Director3yrsno data0.00033% ¥22.1k
Takao Murakami
Independent External Director1yrno datano data

4.5yrs

Average Tenure

Experienced Board: TKK1's board of directors are considered experienced (4.5 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

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


Key Information

  • Name: Taisei Corporation
  • Ticker: TKK1
  • Exchange: DB
  • Founded: 1873
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: JP¥826.224b
  • Listing Market Cap: JP¥6.691b
  • Shares outstanding: 211.31m
  • Website: https://www.taisei.co.jp

Number of Employees


Location

  • Taisei Corporation
  • 1-25-1, Nishi-Shinjuku
  • Shinjuku-ku
  • Tokyo
  • 163-0606
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TISC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDFeb 1985
1801TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
TKK1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
TISC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992

Biography

Taisei Corporation engages in the civil engineering, construction contracts, and real estate development businesses in Japan and internationally. The company is involved in the construction of tunnels, bridges, roads, and dams; and building social infrastructures, as well as offers decontamination, maintenance, and preservation services. It also constructs airports, office buildings, commercial facilities, factories, and hospitals, as well as provides renovation and demolition services. In addition, the company is involved in the redevelopment projects, PFI projects, property management, and condominium sales projects; and purchase, sale, and rental of land and buildings. Further, it engages in the contract research, technology provision, and environmental measurement; housing; and leisure businesses. The company was formerly known as Nippon Doboku Corporation and changed its name to Taisei Corporation in 1946. Taisei Corporation was founded in 1873 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 Analysis2020/06/04 22:14
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
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.