DB:TZ7

Stock Analysis Report

Executive Summary

Toho Co., Ltd., through its subsidiaries, engages in food wholesale, cash and carry, and supermarket businesses primarily in Japan.

Risk Analysis

Earnings have declined by -12.91% per year over past 5 years

Debt is not well covered by operating cash flow

Dividend of 2.82% is not well covered by earnings



Snowflake Analysis

Mediocre balance sheet unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TZ7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

TZ7

2.1%

DE Consumer Retailing

2.0%

DE Market


1 Year Return

-11.2%

TZ7

2.3%

DE Consumer Retailing

15.1%

DE Market

Return vs Industry: TZ7 underperformed the German Consumer Retailing industry which returned 1.3% over the past year.

Return vs Market: TZ7 underperformed the German Market which returned 15% over the past year.


Shareholder returns

TZ7IndustryMarket
7 Day-2.0%2.1%2.0%
30 Day-8.7%2.1%1.0%
90 Day0%1.7%3.8%
1 Year-8.8%-11.2%6.4%2.3%18.6%15.1%
3 Year-23.6%-28.6%6.4%-4.1%16.8%6.6%
5 Year-1.0%-11.4%10.1%-6.8%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

50.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TZ7 (€14.7) is trading above our estimate of fair value (€6.41)

Significantly Below Fair Value: TZ7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TZ7 is poor value based on its PE Ratio (50.8x) compared to the Consumer Retailing industry average (21x).

PE vs Market: TZ7 is poor value based on its PE Ratio (50.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TZ7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TZ7 is good value based on its PB Ratio (0.8x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Toho forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.7%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Toho has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Toho performed over the past 5 years?

-12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TZ7 has high quality earnings.

Growing Profit Margin: TZ7's current net profit margins (0.2%) are lower than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: TZ7's earnings have declined by -12.9% per year over the past 5 years.

Accelerating Growth: TZ7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TZ7 had negative earnings growth (-10.5%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-0.7%).


Return on Equity

High ROE: TZ7's Return on Equity (1.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Toho's financial position?


Financial Position Analysis

Short Term Liabilities: TZ7's short term assets (¥44.7B) exceed its short term liabilities (¥43.8B).

Long Term Liabilities: TZ7's short term assets (¥44.7B) exceed its long term liabilities (¥26.6B).


Debt to Equity History and Analysis

Debt Level: TZ7's debt to equity ratio (138.6%) is considered high.

Reducing Debt: TZ7's debt to equity ratio has increased from 119.2% to 138.6% over the past 5 years.

Debt Coverage: TZ7's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: TZ7's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet

Inventory Level: TZ7 has a high level of physical assets or inventory.

Debt Coverage by Assets: TZ7's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TZ7's dividend (2.82%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: TZ7's dividend (2.82%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: TZ7's dividend payments have been volatile in the past 10 years.

Growing Dividend: TZ7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (143.4%), TZ7's dividend payments are not 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?

4.8yrs

Average board tenure


CEO

Hiroyuki Koga (62yo)

0

Mr. Hiroyuki Koga serves as President and Representative Director at Toho Co., Ltd. Mr. Koga served as Executive Officer of Toho Co., Ltd. since February 2008. He served as Executive Officer of TOHO Food S ...


Board Members

NamePositionTenureCompensationOwnership
Hiroyuki Koga
President & Representative Director0yrsno data0.014% ¥22.6k
Toshiaki Sato
GM of Finance Dept6.8yrsno data0.030% ¥47.6k
Kazuhito Okumura
GM of CSR Promotion0yrsno datano data
Mikio Yamanaka
GM of Marketing & Quality Assurance and Director4.8yrsno datano data
Hiroji Izumi
External Director4.8yrsno datano data
Yuichi Ueno
Chairman of the Board0yrsno data0.11% ¥178.4k
Yoshiro Nobe
External Auditor8.8yrsno datano data
Yasuyuki Nakai
External Director0yrsno datano data
Kiyoshi Maenaka
External Director4.8yrsno data0.016% ¥25.3k
Shinichi Ohmori
External Director4.8yrsno data0.013% ¥20.8k

4.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: TZ7'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

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


Key Information

  • Name: Toho Co., Ltd.
  • Ticker: TZ7
  • Exchange: DB
  • Founded: 1947
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: JP¥19.044b
  • Listing Market Cap: JP¥159.911m
  • Shares outstanding: 10.75m
  • Website: https://www.to-ho.co.jp

Number of Employees


Location

  • Toho Co., Ltd.
  • Koyocho Nishi 5-9
  • Higashiiso Ward
  • Kobe
  • Hyogo
  • 658-0033
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8142TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
TZ7DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992

Biography

Toho Co., Ltd., through its subsidiaries, engages in food wholesale, cash and carry, and supermarket businesses primarily in Japan. It is involved in the development, procurement, and purchase of business foods; and manufacture of coffee. The company also engages in the wholesale of commercial foods to the food service industry; and operation of community based supermarkets. In addition, it is involved in the real estate agency and management; interior design of restaurants; development and maintenance of software; consignment of various office works; and ASP business for eating out companies, as well as in the construction contracting and insurance agency businesses. Further, the company engages in the import, manufacture, sale, and maintenance of business cooking equipment, coffee machines, gelato/soft cream machine, etc. The company was founded in 1947 and is headquartered in Kobe, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:11
End of Day Share Price2020/02/17 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.