MUN:RDN

Stock Analysis Report

Executive Summary

Round One Corporation operates indoor leisure facilities.

Rewards

Trading at 71.2% below its fair value

Earnings are forecast to grow 17.24% per year

Risk Analysis

No risks detected for RDN from our risk checks.


Snowflake Analysis

Very undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.6%

RDN

-4.7%

DE Hospitality

-0.2%

DE Market


1 Year Return

-28.3%

RDN

4.9%

DE Hospitality

13.7%

DE Market

Return vs Industry: RDN underperformed the German Hospitality industry which returned 3.5% over the past year.

Return vs Market: RDN underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

RDNIndustryMarket
7 Day-7.6%-4.7%-0.2%
30 Day-8.2%-0.5%0.3%
90 Day-14.2%-14.4%3.7%
1 Year-27.3%-28.3%9.4%4.9%17.2%13.7%
3 Year16.7%11.5%-9.9%-22.3%15.4%5.3%
5 Year71.4%53.7%-11.3%-30.0%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Round One 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: RDN (€7.85) is trading below our estimate of fair value (€27.22)

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


Price To Earnings Ratio

PE vs Industry: RDN is good value based on its PE Ratio (12x) compared to the Hospitality industry average (25x).

PE vs Market: RDN is good value based on its PE Ratio (12x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: RDN is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: RDN is good value based on its PB Ratio (1.4x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

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

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDN's forecast earnings growth (17.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: RDN's earnings (17.2% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: RDN's revenue (8.6% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: RDN's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDN's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Round One performed over the past 5 years?

61.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDN has high quality earnings.

Growing Profit Margin: RDN's current net profit margins (7%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: RDN has become profitable over the past 5 years, growing earnings by 61.9% per year.

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

Earnings vs Industry: RDN had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Hospitality industry average (-36.8%).


Return on Equity

High ROE: RDN's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Round One's financial position?


Financial Position Analysis

Short Term Liabilities: RDN's short term assets (¥30.2B) exceed its short term liabilities (¥25.8B).

Long Term Liabilities: RDN's short term assets (¥30.2B) do not cover its long term liabilities (¥33.7B).


Debt to Equity History and Analysis

Debt Level: RDN's debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: RDN's debt to equity ratio has reduced from 55.7% to 26.1% over the past 5 years.


Balance Sheet

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

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RDN is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: RDN is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

2.14%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.1%marketbottom25%1.3%markettop25%3.7%industryaverage5.4%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: RDN's dividend (2.14%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: RDN's dividend (2.14%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: RDN's dividends per share have been stable in the past 10 years.

Growing Dividend: RDN's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.7%), RDN'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

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

9.7yrs

Average management tenure


CEO

Masahiko Sugino (58yo)

25.4yrs

Tenure

0

Masahiko Sugino has been the President of Round One Corporation since September 1994 and served as its Chief Executive Officer. Masahiko Sugino joined Round One Corporation in December 1980. Masahiko Sugin ...


Leadership Team

NamePositionTenureCompensationOwnership
Masahiko Sugino
President & Representative Director25.4yrsno data33.15% ¥243.9m
Tamiya Sakamoto
Managing Director and General Manager of Operations & Planning Division5.6yrsno data0.014% ¥102.7k
Shinji Sasae
MD & GM of Administration Division9.7yrsno data0.0088% ¥64.9k
Toshitaka Teramoto
Head of Compliance & Risk Management Team and Director18.7yrsno data0.053% ¥388.3k
Takahiro Inagaki
GM of Corporate Planning Division & Director12.7yrsno data0.015% ¥109.7k
Hidetsugu Kawaguchi
Assistant GM of Operations & Planning Division and Director5.7yrsno data0.0053% ¥38.6k

9.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: RDN's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Masahiko Sugino
President & Representative Director25.4yrsno data33.15% ¥243.9m
Toshitaka Teramoto
Head of Compliance & Risk Management Team and Director18.7yrsno data0.053% ¥388.3k
Takahiro Inagaki
GM of Corporate Planning Division & Director12.7yrsno data0.015% ¥109.7k
Hidetsugu Kawaguchi
Assistant GM of Operations & Planning Division and Director5.7yrsno data0.0053% ¥38.6k
Junji Okuda
External Auditor16.7yrsno data0.0055% ¥40.8k
Hiroshi Iwagawa
External Auditor24.7yrsno data0.021% ¥154.5k
Kimiko Tsuzuregi
External Director5.7yrsno datano data
Ayako Takaguchi
External Director0yrsno datano data
Tomoyuki Goto
External Standing Corporate Auditor2.7yrsno data0.00010% ¥735.7

14.7yrs

Average Tenure

57yo

Average Age

Experienced Board: RDN's board of directors are seasoned and experienced ( 14.7 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

Round One Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Round One Corporation
  • Ticker: RDN
  • Exchange: MUN
  • Founded: 1980
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: JP¥88.878b
  • Listing Market Cap: JP¥735.687m
  • Shares outstanding: 95.26m
  • Website: https://www.round1.co.jp

Number of Employees


Location

  • Round One Corporation
  • NAMBA SkyO
  • 23rd floor
  • Osaka
  • Osaka
  • 542-0076
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDNMUN (Boerse Muenchen)YesCommon SharesDEEURAug 1997
4680TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYAug 1997
RNDO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1997

Biography

Round One Corporation operates indoor leisure facilities. It operates bowling alleys, arcade games, karaoke, billiards, and spo-cha leisure complex facilities. The company was founded in 1980 and is headquartered in Osaka, 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 20:44
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.