DB:TDC

Stock Analysis Report

Executive Summary

TAC Co.,Ltd. engages in personal education, corporate training, publishing, and manpower businesses in Japan.

Rewards

Trading at 58.8% below its fair value

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (0.8%) are lower than last year (1.6%)

+ 1 more risk


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

TDC

0.7%

DE Consumer Services

1.7%

DE Market


1 Year Return

-5.7%

TDC

18.1%

DE Consumer Services

15.0%

DE Market

Return vs Industry: TDC underperformed the German Consumer Services industry which returned 18.1% over the past year.

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


Shareholder returns

TDCIndustryMarket
7 Day-1.8%0.7%1.7%
30 Day-6.7%6.0%0.8%
90 Day-10.7%9.7%3.7%
1 Year-2.9%-5.7%20.0%18.1%18.5%15.0%
3 Year-2.4%-8.9%8.1%2.2%17.1%6.9%
5 Year20.4%9.6%-37.8%-53.3%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is TACLtd 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: TDC (€1.67) is trading below our estimate of fair value (€4.06)

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


Price To Earnings Ratio

PE vs Industry: TDC is poor value based on its PE Ratio (22.2x) compared to the Consumer Services industry average (18.1x).

PE vs Market: TDC is poor value based on its PE Ratio (22.2x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TDC is good value based on its PB Ratio (0.7x) compared to the XE Consumer Services industry average (2.5x).


Next Steps

Future Growth

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

16.8%

Forecasted Consumer Services 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 TACLtd 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 TACLtd performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TDC has a large one-off loss of ¥158.0M impacting its December 31 2019 financial results.

Growing Profit Margin: TDC's current net profit margins (0.8%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: TDC's earnings have grown by 6.3% per year over the past 5 years.

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

Earnings vs Industry: TDC had negative earnings growth (-49.1%) over the past year, making it difficult to compare to the Consumer Services industry average (43.5%).


Return on Equity

High ROE: TDC's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TACLtd's financial position?


Financial Position Analysis

Short Term Liabilities: TDC's short term assets (¥11.2B) do not cover its short term liabilities (¥11.7B).

Long Term Liabilities: TDC's short term assets (¥11.2B) exceed its long term liabilities (¥4.2B).


Debt to Equity History and Analysis

Debt Level: TDC's debt to equity ratio (109.3%) is considered high.

Reducing Debt: TDC's debt to equity ratio has reduced from 185.7% to 109.3% over the past 5 years.

Debt Coverage: TDC's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: TDC's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: TDC's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

2.45%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.5%marketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TDC's dividend (2.45%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: TDC's dividend (2.45%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.1%), TDC's 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?

7.5yrs

Average management tenure


CEO

TACLtd has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Tada Toshio
President & Director0yrsno data0.054% ¥17.1k
Tatsuki Ino
Head of Personnel & Legal and Director4.7yrsno data0.011% ¥3.4k
Kondo Atsushi
Senior MD0yrsno data0.15% ¥46.3k
Kobatake Fumihiko
MD, Head of Education & Executive Director9.7yrsno data0.086% ¥27.4k
Kanai Koji
MD, Head of Legal & Executive Director9.7yrsno data0.014% ¥4.3k
Katsuyasu Fukuhara
Head of Publishing Business & Director4.7yrsno datano data
Norio Nagashima
Head of HR Business – School and Director4.7yrsno data0.015% ¥4.8k

7.5yrs

Average Tenure

58yo

Average Age

Experienced Management: TDC's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tada Toshio
President & Director0yrsno data0.054% ¥17.1k
Tatsuki Ino
Head of Personnel & Legal and Director4.7yrsno data0.011% ¥3.4k
Kondo Atsushi
Senior MD0yrsno data0.15% ¥46.3k
Kobatake Fumihiko
MD, Head of Education & Executive Director9.7yrsno data0.086% ¥27.4k
Kanai Koji
MD, Head of Legal & Executive Director9.7yrsno data0.014% ¥4.3k
Katsuyasu Fukuhara
Head of Publishing Business & Director4.7yrsno datano data
Norio Nagashima
Head of HR Business – School and Director4.7yrsno data0.015% ¥4.8k
Shigeo Abe
External Independent Director4.7yrsno datano data
Hiraga Daijiro
Standing Corporate Auditor10.7yrsno data0.011% ¥3.4k
Gen Ikegami
External Independent Director0yrsno datano data

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: TDC's board of directors are considered experienced (4.7 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

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


Key Information

  • Name: TAC Co.,Ltd.
  • Ticker: TDC
  • Exchange: DB
  • Founded: 1980
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: JP¥3.775b
  • Listing Market Cap: JP¥31.713m
  • Shares outstanding: 18.50m
  • Website: https://www.tac-school.co.jp

Number of Employees


Location

  • TAC Co.,Ltd.
  • 3-2-18 Kanda-Misaki-cho
  • Chiyoda-ku
  • Tokyo
  • 101-8383
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4319TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 2001
TDCDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2001

Biography

TAC Co.,Ltd. engages in personal education, corporate training, publishing, and manpower businesses in Japan. The company’s Personal Education segment offers preparatory courses for individuals challenging various license exams. This segment provides classroom and distance learning courses, DVD courses, Internet Web courses, download correspondence courses, etc. Its Corporate Training segment offers training programs for acquisition of qualifications; work training for acquisition of specialized knowledge and skills; educational materials to corporations, universities, colleges, accountancy firms, and other organizations; school seminars; courses for business professionals; educational contents; and IT license education, as well as operates affiliated schools. The company’s Publishing segment publishes various books related to license qualifications, including books for self-study; and books to help license holders to acquire practical knowledge, as well as books of job-searching activities, liberal arts, travel guide, learning book for elementary school students and entertainment, translated business books and novels, etc. under the TAC Publishing and Waseda Keiei Publishing brands to bookstores, university co-ops nationwide, schools, and Cyber Book Store for online purchases. It also provides various media products; and holds book fairs and sales promotion events. Manpower segment provides manpower dispatching and placement, and job advertisement services. The company was founded in 1980 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 Analysis2020/02/16 21:50
End of Day Share Price2020/02/14 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.