DB:B24

Stock Analysis Report

Executive Summary

BELLSYSTEM24 Holdings, Inc. provides outsourcing, technology, and consulting services related to CRM solutions primarily in Japan.

Snowflake

Fundamentals

Limited growth with imperfect balance sheet.

Share Price & News

How has BELLSYSTEM24 Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

B24

0.3%

DE Commercial Services

1.4%

DE Market


1 Year Return

15.7%

B24

-14.8%

DE Commercial Services

3.8%

DE Market

Return vs Industry: B24 exceeded the German Commercial Services industry which returned -14.8% over the past year.

Return vs Market: B24 exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

B24IndustryMarket
7 Day2.9%0.3%1.4%
30 Day7.3%-0.5%1.3%
90 Day13.3%-0.5%3.1%
1 Year18.7%15.7%-11.7%-14.8%7.0%3.8%
3 Year80.9%66.6%3.1%-5.7%18.5%8.3%
5 Yearn/a-4.1%-17.6%42.2%22.9%

Price Volatility Vs. Market

How volatile is BELLSYSTEM24 Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BELLSYSTEM24 Holdings undervalued compared to its fair value and its price relative to the market?

23.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: B24 (€14.2) is trading below our estimate of fair value (€18.55)

Significantly Below Fair Value: B24 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: B24 is poor value based on its PE Ratio (21.8x) compared to the Commercial Services industry average (16.4x).

PE vs Market: B24 is poor value based on its PE Ratio (21.8x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: B24 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: B24 is overvalued based on its PB Ratio (2.7x) compared to the DE Commercial Services industry average (2.7x).


Next Steps

Future Growth

How is BELLSYSTEM24 Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: B24's forecast earnings growth (11.4% per year) is above the savings rate (0.2%).

Earnings vs Market: B24's earnings (11.4% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: B24's earnings are forecast to grow, but not significantly.

Revenue vs Market: B24's revenue (5.5% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: B24's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: B24's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has BELLSYSTEM24 Holdings performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: B24's earnings have declined by -6.9% per year over the past 5 years.

Accelerating Growth: B24's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: B24 had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Commercial Services industry average (6.5%).


Return on Equity

High ROE: B24's Return on Equity (11%) is considered low.


Return on Assets

ROA vs Industry: B24's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: B24 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is BELLSYSTEM24 Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: B24's short term assets (¥27.6B) do not cover its short term liabilities (¥37.3B)

Long Term Liabilities: B24's short term assets (27.6B) do not cover its long term liabilities (83.4B)


Debt to Equity History and Analysis

Debt Level: B24's debt to equity ratio (147%) is considered high

Reducing Debt: B24's debt to equity ratio has reduced from 183.9% to 147% over the past 5 years.

Debt Coverage: B24's debt is not well covered by operating cash flow (19%).

Interest Coverage: B24's interest payments on its debt are well covered by EBIT (28.7x coverage).


Balance Sheet

Inventory Level: B24 has a low level of unsold assets or inventory.

Debt Coverage by Assets: B24's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is BELLSYSTEM24 Holdings's current dividend yield, its reliability and sustainability?

2.42%

Current Dividend Yield


Upcoming Dividend Payment

Purchase BELLSYSTEM24 Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: B24's dividend (2.42%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: B24's dividend (2.42%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: Whilst dividend payments have been stable, B24 has been paying a dividend for less than 10 years.

Growing Dividend: B24's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.1%), B24'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 BELLSYSTEM24 Holdings's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Ichiro Tsuge (61yo)

3.6yrs

Tenure

0

Mr. Ichiro Tsuge serves as Chief Executive Officer, President and Representative Director of BELLSYSTEM24, Inc. Mr. Tsuge has been the Chief Executive Officer and President of BELLSYSTEM24 Holdings, Inc. s ...


Management Age and Tenure

3.0yrs

Average Tenure

60yo

Average Age

Experienced Management: B24's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Board: B24's board of directors are considered experienced (3.7 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


Management Team

  • Ichiro Tsuge (61yo)

    CEO, President & Representative Director

    • Tenure: 3.6yrs
  • Hidenori Hasebe

    Senior VP & Corporate Officer

    • Tenure: 2.3yrs
  • Akihiko Kanazawa (60yo)

    Executive VP

    • Tenure: 3.3yrs
  • Yasuhiro Matsuda

    Chief Information Officer

    • Tenure: 0yrs
  • Ichizo Matsumura (59yo)

    Corporate Officer

    • Tenure: 4.1yrs
  • Noriyuki Hayata (60yo)

    Executive VP

    • Tenure: 4.1yrs
  • Toyohisa Tsuji

    Corporate Officer and Head of Corporate Planning

    • Tenure: 0yrs
  • Masaaki Obayashi

    Corporate Officer & CFO

    • Tenure: 0.8yrs

Board Members

  • Yuji Sugimoto (50yo)

    Director

    • Tenure: 4.1yrs
  • Ichiro Tsuge (61yo)

    CEO, President & Representative Director

    • Tenure: 3.6yrs
  • Akihiko Kanazawa (60yo)

    Executive VP

    • Tenure: 3.3yrs
  • Ichizo Matsumura (59yo)

    Corporate Officer

    • Tenure: 4.1yrs
  • Noriyuki Hayata (60yo)

    Executive VP

    • Tenure: 4.1yrs
  • Nobuya Ishizaka (53yo)

    External Director

    • Tenure: 4.1yrs
  • Aki Tsurumaki (51yo)

    External Director

    • Tenure: 3.3yrs
  • Makiko Takahashi (52yo)

    External Director

    • Tenure: 2.3yrs
  • Takuya Yamaguchi

    Outside Director

    • Tenure: 1.4yrs
  • Kiyoshi Imagawa

    Outside Director

    • Tenure: 1.4yrs

Company Information

BELLSYSTEM24 Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BELLSYSTEM24 Holdings, Inc.
  • Ticker: B24
  • Exchange: DB
  • Founded: 1982
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: JP¥127.478b
  • Listing Market Cap: JP¥1.054b
  • Shares outstanding: 73.52m
  • Website: https://www.bell24hd.co.jp

Number of Employees


Location

  • BELLSYSTEM24 Holdings, Inc.
  • Harumi Island Triton Square Office Tower Y
  • 8-11 Harumi 1-chome
  • Tokyo
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6183TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYNov 2015
B24DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2015

Biography

BELLSYSTEM24 Holdings, Inc. provides outsourcing, technology, and consulting services related to CRM solutions primarily in Japan. It also provides BPO services based on IT/manual preparation/education and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:44
End of Day Share Price2019/10/21 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


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.