DB:MO8

Stock Analysis Report

Executive Summary

Morinaga Milk Industry Co., Ltd. produces and sells various dairy products in Japan and internationally.

Snowflake

Fundamentals

Good value with acceptable track record.

Risks

  • Morinaga Milk Industry is covered by less than 3 analysts.

Share Price & News

How has Morinaga Milk Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

DB:MO8

4.0%

DE Food

0.8%

DE Market


1 Year Return

57.2%

DB:MO8

6.9%

DE Food

-10.9%

DE Market

MO8 outperformed the Food industry which returned 6.9% over the past year.

MO8 outperformed the Market in Germany which returned -10.9% over the past year.


Share holder returns

MO8IndustryMarket
7 Day0.5%4.0%0.8%
30 Day2.4%8.3%-5.3%
90 Day10.4%7.2%-3.2%
1 Year59.6%57.2%8.7%6.9%-8.1%-10.9%
3 Year27.2%22.8%-7.4%-13.2%10.4%0.9%
5 Year192.8%175.0%40.7%28.0%25.5%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Morinaga Milk Industry undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Morinaga Milk Industry's share price is below the future cash flow value, and at a moderate discount (> 20%).

Morinaga Milk Industry's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Morinaga Milk Industry is good value based on earnings compared to the DE Food industry average.

Morinaga Milk Industry is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Morinaga Milk Industry is poor value based on expected growth next year.


Price Based on Value of Assets

Morinaga Milk Industry is good value based on assets compared to the DE Food industry average.


Next Steps

Future Growth

How is Morinaga Milk Industry expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Morinaga Milk Industry's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).

Morinaga Milk Industry's earnings are expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

Morinaga Milk Industry's revenue growth is positive but not above the Germany market average.

Morinaga Milk Industry's earnings growth is positive but not above the Germany market average.

Morinaga Milk Industry's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Morinaga Milk Industry is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Morinaga Milk Industry performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Morinaga Milk Industry has delivered over 20% year on year earnings growth in the past 5 years.

Morinaga Milk Industry's 1-year earnings growth is less than its 5-year average (18.1% vs 21.5%)

Morinaga Milk Industry's earnings growth has exceeded the DE Food industry average in the past year (18.1% vs 17.4%).


Return on Equity

Morinaga Milk Industry has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Morinaga Milk Industry used its assets less efficiently than the DE Food industry average last year based on Return on Assets.


Return on Capital Employed

Morinaga Milk Industry has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Morinaga Milk Industry's financial position?


Financial Position Analysis

Morinaga Milk Industry's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Morinaga Milk Industry's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Morinaga Milk Industry's level of debt (60.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (75.5% vs 60.3% today).

Debt is not well covered by operating cash flow (18%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 585x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

What is Morinaga Milk Industry's current dividend yield, its reliability and sustainability?

1.60%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Morinaga Milk Industry's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.53%).

Morinaga Milk Industry's dividend is below the markets top 25% of dividend payers in Germany (4.08%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Morinaga Milk Industry's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Michio Miyahara (68yo)

7.2yrs

Tenure

0

Mr. Michio Miyahara has been the President at Morinaga Milk Industry Co., Ltd., since June 2012. Mr. Miyahara served as Vice President of Morinaga Milk Industry Co., Ltd since June 2009. He served as Execu ...


Management Age and Tenure

4.2yrs

Average Tenure

62yo

Average Age

The tenure for the Morinaga Milk Industry management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

62.5yo

Average Age

The tenure for the Morinaga Milk Industry board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Junichi Noguchi (69yo)

    Executive VP

    • Tenure: 5.2yrs
  • Michio Miyahara (68yo)

    President & Representative Director

    • Tenure: 7.2yrs
  • Teiichiro Okawa (63yo)

    Senior MD

    • Tenure: 0.0yrs
  • Yoichi Onuki (60yo)

    Senior MD

    • Tenure: 4.2yrs
  • Tsuyoshi Minato (55yo)

    MD, GM of Public Relations Division

    • Tenure: 4.2yrs
  • Shigemi Kusano (62yo)

    MD & Director

    • Tenure: 3.2yrs
  • Kenichi Ohara (61yo)

    Managing Executive Officer

    • Tenure: 3.2yrs

Board Members

  • Shoji Kawakami (70yo)

    External Director

    • Tenure: 4.2yrs
  • Junichi Noguchi (69yo)

    Executive VP

    • Tenure: 5.2yrs
  • Michio Miyahara (68yo)

    President & Representative Director

    • Tenure: 7.2yrs
  • Teiichiro Okawa (63yo)

    Senior MD

    • Tenure: 0.0yrs
  • Yoichi Onuki (60yo)

    Senior MD

    • Tenure: 4.2yrs
  • Tsuyoshi Minato (55yo)

    MD, GM of Public Relations Division

    • Tenure: 4.2yrs
  • Takatono Yoneda (74yo)

    External Director

    • Tenure: 0.6yrs
  • Mitsumasa Saito (61yo)

    Director

    • Tenure: 3.2yrs
  • Shigemi Kusano (62yo)

    MD & Director

    • Tenure: 3.2yrs
  • Kenichi Ohara (61yo)

    Managing Executive Officer

    • Tenure: 3.2yrs

Company Information

Morinaga Milk Industry Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Morinaga Milk Industry Co., Ltd.
  • Ticker: MO8
  • Exchange: DB
  • Founded: 1917
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: JP¥209.264b
  • Listing Market Cap: JP¥1.779b
  • Shares outstanding: 49.47m
  • Website: https://www.morinagamilk.co.jp

Number of Employees


Location

  • Morinaga Milk Industry Co., Ltd.
  • 33-1, Shiba 5-chome
  • Minato-ku
  • Tokyo
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MO8DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
2264TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992

Biography

Morinaga Milk Industry Co., Ltd. produces and sells various dairy products in Japan and internationally. It offers milk, yogurt, cheese, and butter products, as well as chilled desserts, ice creams, infant ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 20:37
End of Day Share Price2019/08/23 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.