DB:LAW

Stock Analysis Report

Executive Summary

Lawson, Inc. operates and franchises convenience stores under the Lawson, Lawson Store 100, and Natural Lawson names in the People’s Republic of China, Thailand, Indonesia, the Philippines, and the United States.

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

LAW

-0.4%

DE Consumer Retailing

-0.3%

DE Market


1 Year Return

-12.4%

LAW

5.3%

DE Consumer Retailing

10.9%

DE Market

Return vs Industry: LAW underperformed the German Consumer Retailing industry which returned 5.3% over the past year.

Return vs Market: LAW underperformed the German Market which returned 10.9% over the past year.


Shareholder returns

LAWIndustryMarket
7 Day-2.6%-0.4%-0.3%
30 Day1.2%-0.3%2.6%
90 Day10.4%4.9%11.8%
1 Year-9.4%-12.4%9.6%5.3%14.4%10.9%
3 Year-15.6%-24.1%4.7%-5.4%24.1%13.2%
5 Year18.0%-0.02%19.1%0.9%33.0%14.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Lawson 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: LAW (€49.2) is trading below our estimate of fair value (€124.09)

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


Price To Earnings Ratio

PE vs Industry: LAW is poor value based on its PE Ratio (21.8x) compared to the Consumer Retailing industry average (19.5x).

PE vs Market: LAW is poor value based on its PE Ratio (21.8x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LAW is overvalued based on its PB Ratio (2.2x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Lawson forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAW's forecast earnings growth (11.3% per year) is above the savings rate (0.2%).

Earnings vs Market: LAW's earnings (11.3% per year) are forecast to grow slower than the German market (12.8% per year).

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

Revenue vs Market: LAW's revenue (2.6% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: LAW's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAW's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Lawson performed over the past 5 years?

-8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAW has large one-off items impacting its financial results.

Growing Profit Margin: LAW's current net profit margins (3.9%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: LAW's earnings have declined by -8.2% per year over the past 5 years.

Accelerating Growth: LAW's earnings growth over the past year (31.4%) exceeds its 5-year average (-8.2% per year).

Earnings vs Industry: LAW earnings growth over the past year (31.4%) exceeded the Consumer Retailing industry 0.5%.


Return on Equity

High ROE: LAW's Return on Equity (9.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lawson's financial position?


Financial Position Analysis

Short Term Liabilities: LAW's short term assets (¥662.5B) exceeds its short term liabilities (¥643.6B)

Long Term Liabilities: LAW's short term assets (¥662.5B) exceeds its long term liabilities (473.0B)


Debt to Equity History and Analysis

Debt Level: LAW's debt to equity ratio (136.7%) is considered high.

Reducing Debt: LAW's debt to equity ratio has increased from 4.4% to 136.7% over the past 5 years.

Debt Coverage: LAW's debt is well covered by operating cash flow (45.5%).

Interest Coverage: LAW's interest payments on its debt are well covered by EBIT (24.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: LAW's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

2.48%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: LAW's dividend (2.48%) is higher than the bottom 25% of dividend payers in the German market (1.4%).

High Dividend: LAW's dividend (2.48%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73%), LAW'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 Lawson's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Sadanobu Takemasu (50yo)

2.2yrs

Tenure

0

Mr. Sadanobu Takemasu has been the President and Chief Executive Officer at Lawson Inc. since June 1, 2016 and September 2017 respectively. He is Division Director of Marketing Strategy at Lawson, Inc. sin ...


Management Age and Tenure

2.7yrs

Average Tenure

53yo

Average Age

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


Board Age and Tenure

3.0yrs

Average Tenure

56yo

Average Age

Experienced Board: LAW's board of directors are considered experienced (3 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

  • Katsuyuki Imada (56yo)

    Senior Executive Managing Officer

    • Tenure: 2.5yrs
  • Jun Miyazaki

    Senior Exec. Managing Officer

    • Tenure: 0yrs
  • Shuichi Imagawa

    Executive Managing Officer

    • Tenure: 0yrs
  • Hajime Kawamura

    Senior VP

    • Tenure: 0yrs
  • Yasuhiro Iseki

    Senior VP & Executive Officer

    • Tenure: 0yrs
  • Yasushi Wakabayashi (66yo)

    Deputy Senior Vice President

    • Tenure: 0yrs
  • Tatsushi Sato

    Executive VP

    • Tenure: 0yrs
  • Sadanobu Takemasu (50yo)

    Chairman

    • Tenure: 2.2yrs
  • Satoshi Nakaniwa (50yo)

    Executive Managing Officer

    • Tenure: 2.5yrs
  • Toshihiko Chihiro

    Senior VP and Corporate Sales & Store Development Division Director

    • Tenure: 0yrs

Board Members

  • Katsuyuki Imada (56yo)

    Senior Executive Managing Officer

    • Tenure: 2.5yrs
  • Eiko Tsujiyama (72yo)

    Outside Audit & Supervisory Board Member

    • Tenure: 8.5yrs
  • Masakatsu Gonai

    Audit & Supervisory Board Member

    • Tenure: 2.5yrs
  • Emi Osono (54yo)

    Outside Director

    • Tenure: 7.5yrs
  • Yutaka Kyoya (57yo)

    Non-Executive Director

    • Tenure: 6.5yrs
  • Sadanobu Takemasu (50yo)

    Chairman

    • Tenure: 2.2yrs
  • Kazunori Nishio (58yo)

    Non-Executive Director

    • Tenure: 3.5yrs
  • Keiko Hayashi (60yo)

    Outside Director

    • Tenure: 3.5yrs
  • Satoshi Nakaniwa (50yo)

    Executive Managing Officer

    • Tenure: 2.5yrs
  • Miki Iwamura (54yo)

    Outside Director

    • Tenure: 1.5yrs

Company Information

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


Key Information

  • Name: Lawson, Inc.
  • Ticker: LAW
  • Exchange: DB
  • Founded: 1975
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: JP¥604.377b
  • Listing Market Cap: JP¥5.030b
  • Shares outstanding: 100.06m
  • Website: https://www.lawson.co.jp

Number of Employees


Location

  • Lawson, Inc.
  • East Tower
  • 3rd Floor, Gate City Ohsaki
  • Tokyo
  • 141-8643
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LWSO.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 2000
LAWDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2000
2651TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJul 2000

Biography

Lawson, Inc. operates and franchises convenience stores under the Lawson, Lawson Store 100, and Natural Lawson names in the People’s Republic of China, Thailand, Indonesia, the Philippines, and the United  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 20:35
End of Day Share Price2019/11/21 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.