DB:IWA

Stock Analysis Report

Executive Summary

Iwatani Corporation supplies gases and energy in Japan, China, Taiwan, South Korea, Singapore, Thailand, Malaysia, Indonesia, Vietnam, the United States, and Australia.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

IWA

3.3%

DE Oil and Gas

1.4%

DE Market


1 Year Return

n/a

IWA

48.6%

DE Oil and Gas

3.7%

DE Market

Return vs Industry: Insufficient data to determine how IWA performed against the German Oil and Gas industry.

Return vs Market: Insufficient data to determine how IWA performed against the German Market.


Shareholder returns

IWAIndustryMarket
7 Day0%3.3%1.4%
30 Day2.6%3.2%1.8%
90 Day3.3%12.0%3.4%
1 Yearn/a53.4%48.6%7.0%3.7%
3 Yearn/a43.3%29.8%18.5%8.3%
5 Yearn/a169.4%127.4%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IWA (€30) is trading below our estimate of fair value (€54.05)

Significantly Undervalued: IWA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IWA is good value based on its PE Ratio (9.3x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: IWA is good value based on its PE Ratio (9.3x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: IWA is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: IWA is good value based on its PB Ratio (1.1x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Iwatani forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IWA's forecast earnings growth (6% per year) is above the savings rate (0.2%).

Earnings vs Market: IWA's earnings (6% per year) are forecast to grow slower than the German market (12.6% per year).

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

Revenue vs Market: IWA's revenue (3.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: IWA's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if IWA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Iwatani performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IWA's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: IWA's earnings growth over the past year (6.1%) is below its 5-year average (19.1% per year).

Earnings vs Industry: IWA earnings growth over the past year (6.1%) underperformed the Oil and Gas industry 10%.


Return on Equity

High ROE: IWA's Return on Equity (11.8%) is considered low.


Return on Assets

ROA vs Industry: IWA's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Iwatani's financial position?


Financial Position Analysis

Short Term Liabilities: IWA's short term assets (¥190.1B) exceeds its short term liabilities (¥164.3B)

Long Term Liabilities: IWA's short term assets (190.1B) exceeds its long term liabilities (112.6B)


Debt to Equity History and Analysis

Debt Level: IWA's debt to equity ratio (68%) is considered high

Reducing Debt: IWA's debt to equity ratio has reduced from 125.7% to 68% over the past 5 years.

Debt Coverage: IWA's debt is well covered by operating cash flow (32.9%).

Interest Coverage: IWA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: IWA's debt is covered by short term assets (assets are 1.596630x debt).


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IWA's dividend (1.75%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: IWA's dividend (1.75%) is low compared to the top 25% of dividend payers in the German market (3.8%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.2%), IWA'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 Iwatani's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Akiji Makino (78yo)

7.3yrs

Tenure

JP¥154,000,000

Compensation

Mr. Akiji Makino has been the Chairman and Chief Executive Officer at Iwatani Corporation since June 2012. Mr. Makino served as the President of Iwatani Corporation. Mr. Makino previously served as the Chi ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Akiji's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Akiji's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.6yrs

Average Tenure

64yo

Average Age

Experienced Management: IWA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

67yo

Average Age

Experienced Board: IWA's board of directors are considered experienced (7.3 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


Management Team

  • Akiji Makino (78yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: JP¥154.00m
  • Hisato Ueha (67yo)

    Member of the Board

    • Tenure: 6.5yrs
  • Mitsuhiro Tanimoto (68yo)

    President

    • Tenure: 7.5yrs
  • Naoki Iwatani (53yo)

    Assistant GM of Integrated Energy Division

    • Tenure: 8.3yrs
  • Hiroshi Majima (61yo)

    VP, Manager-Mgmt. Planning Dept

    • Tenure: 5.5yrs
  • Akira Ohta (61yo)

    Senior Managing Officer & Director

    • Tenure: 8.3yrs
  • Satoshi Watanabe

    Senior Managing Officer & Director

    • Tenure: 0yrs
  • Yasushi Sakai

    Managing Officer

    • Tenure: 3.5yrs
  • Makoto Horiguchi

    Senior Managing Officer & Director

    • Tenure: 3.3yrs
  • Takashi Kamekura

    Managing Officer

    • Tenure: 2.5yrs

Board Members

  • Toshio Watanabe (74yo)

    Vice Chairman

    • Tenure: 7.3yrs
  • Akiji Makino (78yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: JP¥154.00m
  • Hisato Ueha (67yo)

    Member of the Board

    • Tenure: 6.5yrs
  • Mitsuhiro Tanimoto (68yo)

    President

    • Tenure: 7.5yrs
  • Naoki Iwatani (53yo)

    Assistant GM of Integrated Energy Division

    • Tenure: 8.3yrs
  • Hiroshi Majima (61yo)

    VP, Manager-Mgmt. Planning Dept

    • Tenure: 5.5yrs
  • Akira Ohta (61yo)

    Senior Managing Officer & Director

    • Tenure: 8.3yrs
  • Satoshi Watanabe

    Senior Managing Officer & Director

    • Tenure: 0yrs
  • Makoto Horiguchi

    Senior Managing Officer & Director

    • Tenure: 3.3yrs
  • Itaru Ookawa

    Managing Officer & Director

    • Tenure: 2.3yrs

Company Information

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


Key Information

  • Name: Iwatani Corporation
  • Ticker: IWA
  • Exchange: DB
  • Founded: 1930
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: JP¥183.023b
  • Listing Market Cap: JP¥1.514b
  • Shares outstanding: 49.20m
  • Website: https://www.iwatani.co.jp

Number of Employees


Location

  • Iwatani Corporation
  • 6-4, Hommachi 3-chome
  • Chuo-ku
  • Osaka
  • 541-0053
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8088TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
IWAMUN (Boerse Muenchen)YesCommon StockDEEURJan 1992
IWADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Iwatani Corporation supplies gases and energy in Japan, China, Taiwan, South Korea, Singapore, Thailand, Malaysia, Indonesia, Vietnam, the United States, and Australia. The company operates through four se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 21:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.