MUN:AA2

Stock Analysis Report

Executive Summary

Amada Holdings Co., Ltd., together with its subsidiaries, engages in the manufacture, sale, lease, repair, maintenance, checking, and inspection of metalworking machinery and equipment in Japan, North America, Europe, China, rest of Asia, and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AA2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

AA2

-1.5%

DE Machinery

-0.2%

DE Market


1 Year Return

-3.7%

AA2

-10.4%

DE Machinery

13.7%

DE Market

Return vs Industry: AA2 exceeded the German Machinery industry which returned -10.4% over the past year.

Return vs Market: AA2 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

AA2IndustryMarket
7 Day-5.8%-1.5%-0.2%
30 Day-13.6%-2.4%0.3%
90 Day-12.2%-1.1%3.7%
1 Year0.7%-3.7%-7.6%-10.4%17.2%13.7%
3 Year-7.8%-17.4%-17.6%-23.5%15.4%5.3%
5 Year29.9%8.6%-0.5%-11.7%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

44.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AA2 (€8.9) is trading below our estimate of fair value (€16.09)

Significantly Below Fair Value: AA2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AA2 is good value based on its PE Ratio (13.1x) compared to the Machinery industry average (15.2x).

PE vs Market: AA2 is good value based on its PE Ratio (13.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: AA2 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: AA2 is good value based on its PB Ratio (0.9x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is Amada Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AA2's forecast earnings growth (7.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: AA2's earnings (7.8% per year) are forecast to grow slower than the German market (13.1% per year).

High Growth Earnings: AA2's earnings are forecast to grow, but not significantly.

Revenue vs Market: AA2's revenue (3.6% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: AA2's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AA2's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Amada Holdings performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AA2 has high quality earnings.

Growing Profit Margin: AA2's current net profit margins (9%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: AA2's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: AA2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AA2 had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Machinery industry average (-14.4%).


Return on Equity

High ROE: AA2's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amada Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AA2's short term assets (¥308.6B) exceed its short term liabilities (¥103.8B).

Long Term Liabilities: AA2's short term assets (¥308.6B) exceed its long term liabilities (¥24.1B).


Debt to Equity History and Analysis

Debt Level: AA2's debt to equity ratio (4.7%) is considered satisfactory.

Reducing Debt: AA2's debt to equity ratio has reduced from 8.5% to 4.7% over the past 5 years.

Debt Coverage: AA2's debt is well covered by operating cash flow (195.2%).

Interest Coverage: AA2 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AA2 has a high level of physical assets or inventory.

Debt Coverage by Assets: AA2's debt is covered by short term assets (assets are 14.9x debt).


Next Steps

Dividend

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

4.42%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.4%marketbottom25%1.3%markettop25%3.7%industryaverage2.2%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: AA2's dividend (4.42%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AA2's dividend (4.42%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: AA2's dividend payments have been volatile in the past 10 years.

Growing Dividend: AA2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), AA2'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

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

4.8yrs

Average board tenure


CEO

Mitsuo Okamoto (76yo)

10.7yrs

Tenure

JP¥165,000,000

Compensation

Mr. Mitsuo Okamoto serves as the President of Amada America at Amada Machine Tools Co., Ltd. Mr. Okamoto has been the Chief Executive Officer of Amada Holdings Co., Ltd since June 2009 and served as its P ...


CEO Compensation Analysis

Compensation vs Market: Mitsuo's total compensation ($USD1.47M) is below average for companies of similar size in the German market ($USD2.27M).

Compensation vs Earnings: Mitsuo's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Mitsuo Okamoto
Chairman & CEO10.7yrsJP¥165.00m0.034% ¥1.1m
Tsutomu Isobe
President & Representative Director12.7yrsno data0.017% ¥548.4k
Kotaro Shibata
MD of Sales & Marketing0yrsno data0.0071% ¥224.6k
Michiyoshi Mazuka
External Director3.6yrsno datano data
Takaya Shigeta
4.8yrsno data0.0079% ¥251.9k
Katsuhide Ito
0yrsno data0.0031% ¥99.0k
Toshitake Chino
External Director5.7yrsno datano data
Hidekazu Miyoshi
External Director4.8yrsno data0.0026% ¥80.9k
Hidekazu Kudo
Director2.6yrsno data0.0028% ¥89.8k
Kazuhiko Miwa
Director1.6yrsno data0.0028% ¥89.8k

4.8yrs

Average Tenure

71yo

Average Age

Experienced Board: AA2's board of directors are considered experienced (4.8 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

Amada Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amada Holdings Co., Ltd.
  • Ticker: AA2
  • Exchange: MUN
  • Founded: 1946
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥383.207b
  • Listing Market Cap: JP¥3.172b
  • Shares outstanding: 352.86m
  • Website: https://www.amadaholdings.co.jp

Number of Employees


Location

  • Amada Holdings Co., Ltd.
  • 200, Ishida
  • Isehara
  • Kanagawa
  • 259-1196
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6113TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
AMDW.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
AA2MUN (Boerse Muenchen)YesCommon StockDEEURJan 1992
AMDL.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 1992

Biography

Amada Holdings Co., Ltd., together with its subsidiaries, engages in the manufacture, sale, lease, repair, maintenance, checking, and inspection of metalworking machinery and equipment in Japan, North America, Europe, China, rest of Asia, and internationally. It offers sheet metal fabrication machines, including laser machines, turret punch presses, press brakes, and welders, as well as software solutions; metal cutting machines, such as band saw and structural steel machines that are used in the fabrication of steel frames for high-rise buildings, bridges, and other structures; and machine tools, which include multiprocess centers, grinding machines, and electrical discharge machines for use in the precision finishing of medical devices and other equipment. The company also provides stamping presses for producing electronic parts; and precision welding machines, such as laser welders and markers, resistance welders, and systems for use in automotive electrical equipment, secondary batteries, household electrical appliances, LCD displays, personal computers, medical devices, and various other products. In addition, it offers saw blades; conveyor devices, power transmission devices, automatic control units, and various other equipment; and tools for peripheral machines, punching and bending, and hydraulic punch presses, as well as after-sales services. The company was formerly known as Amada Co., Ltd. and changed its name to Amada Holdings Co., Ltd. in April 2015. Amada Holdings Co., Ltd. was founded in 1946 and is headquartered in Isehara, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:20
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.