DB:KOY

Stock Analysis Report

Kobayashi Pharmaceutical

Executive Summary

Kobayashi Pharmaceutical Co., Ltd., together with its subsidiaries, manufactures and sells consumer products in Japan and internationally.


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KOY

0.3%

DE Personal Products

0.5%

DE Market


1 Year Return

41.9%

KOY

20.7%

DE Personal Products

15.5%

DE Market

Return vs Industry: KOY exceeded the German Personal Products industry which returned 20.1% over the past year.

Return vs Market: KOY exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

KOYIndustryMarket
7 Day0%0.3%0.5%
30 Day-0.7%-0.03%1.4%
90 Day7.1%3.6%5.3%
1 Year43.0%41.9%23.4%20.7%19.2%15.5%
3 Year96.4%91.6%50.8%40.7%15.7%5.5%
5 Year189.8%175.5%68.2%50.0%27.3%10.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

37.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KOY (€74.5) is trading above our estimate of fair value (€36.95)

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


Price To Earnings Ratio

PE vs Industry: KOY is poor value based on its PE Ratio (37.9x) compared to the Personal Products industry average (22.9x).

PE vs Market: KOY is poor value based on its PE Ratio (37.9x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: KOY is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: KOY is overvalued based on its PB Ratio (4.3x) compared to the XE Personal Products industry average (2x).


Next Steps

Future Growth

How is Kobayashi Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOY's forecast earnings growth (6% per year) is above the savings rate (-0.4%).

Earnings vs Market: KOY's earnings (6% per year) are forecast to grow slower than the German market (13.2% per year).

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

Revenue vs Market: KOY's revenue (4.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: KOY's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KOY's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Kobayashi Pharmaceutical performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KOY has a high level of non-cash earnings.

Growing Profit Margin: KOY's current net profit margins (11.4%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: KOY's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: KOY's earnings growth over the past year (6.2%) is below its 5-year average (8.8% per year).

Earnings vs Industry: KOY earnings growth over the past year (6.2%) exceeded the Personal Products industry -1.9%.


Return on Equity

High ROE: KOY's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kobayashi Pharmaceutical's financial position?


Financial Position Analysis

Short Term Liabilities: KOY's short term assets (¥149.4B) exceed its short term liabilities (¥47.2B).

Long Term Liabilities: KOY's short term assets (¥149.4B) exceed its long term liabilities (¥8.2B).


Debt to Equity History and Analysis

Debt Level: KOY's debt to equity ratio (0%) is considered satisfactory.

Reducing Debt: KOY's debt to equity ratio has reduced from 0.03% to 0% over the past 5 years.

Debt Coverage: KOY's debt is well covered by operating cash flow (347683.3%).

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


Balance Sheet

Inventory Level: KOY has a low level of unsold assets or inventory.

Debt Coverage by Assets: KOY's debt is covered by short term assets (assets are 24893.2x debt).


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.5%industryaverage2.1%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: KOY's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: KOY's dividend (0.73%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), KOY'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 Kobayashi Pharmaceutical's salary, the management and board of directors tenure and is there insider trading?

10.8yrs

Average management tenure


CEO

Kazumasa Kobayashi (80yo)

15.6yrs

Tenure

JP¥289,000,000

Compensation

Mr. Kazumasa Kobayashi has been the Chairman of the Board and Chief Executive Officer of Kobayashi Pharmaceutical Co. LTD. since June 2004. Mr. Kobayashi served as the President of KOBAYASHI Pharmaceutical ...


CEO Compensation Analysis

Compensation vs Market: Kazumasa's total compensation ($USD2.63M) is about average for companies of similar size in the German market ($USD3.59M).

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


Management Age and Tenure

10.8yrs

Average Tenure

60.5yo

Average Age

Experienced Management: KOY's management team is seasoned and experienced (10.8 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

62yo

Average Age

Experienced Board: KOY's board of directors are considered experienced (7.6 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Akihiro Kobayashi (48yo)

    President

    • Tenure: 6.6yrs
  • Kazumasa Kobayashi (80yo)

    Chairman of the Board & CEO

    • Tenure: 15.6yrs
    • Compensation: JP¥289.00m
  • Satoshi Yamane (59yo)

    Senior GM of Corporate Administration Headquarters

    • Tenure: 13.6yrs
  • Fujito Ohwaki

    Senior General Manager of Healthcare Division

    • Tetsuji Nishioka

      Senior General Manager of Manufacturing Headquarters

      • Susumu Horiuchi (62yo)

        Senior GM of Sales Division

        • Tenure: 5.6yrs
      • Kazuhito Miyanishi

        MD & Head of International Business Division

        • Naoki Ayabe

          Deputy Senior GM of Sales Headquarters & GM of Tokyo Metropolitan Area

          • Takuya Matsushita

            Senior General Manager of Household Division

            • Yoshihiro Ogawa

              Senior General Manager of Direct Marketing Division


              Board Members

              • Yutaka Kobayashi (74yo)

                Vice Chairman of the Board

                • Tenure: 6.6yrs
                • Compensation: JP¥188.00m
              • Haruo Tsuji (87yo)

                Outside Director

                • Tenure: 11.6yrs
              • Akihiro Kobayashi (48yo)

                President

                • Tenure: 6.6yrs
              • Kazumasa Kobayashi (80yo)

                Chairman of the Board & CEO

                • Tenure: 15.6yrs
                • Compensation: JP¥289.00m
              • Kunio Ito (68yo)

                Outside Director

                • Tenure: 6.6yrs
              • Satoshi Yamane (59yo)

                Senior GM of Corporate Administration Headquarters

                • Tenure: 13.6yrs
              • Ryuji Sakai (62yo)

                Outside Audit & Supervisory Board Member

                • Tenure: 14.6yrs
              • Susumu Horiuchi (62yo)

                Senior GM of Sales Division

                • Tenure: 5.6yrs
              • Hiroshi Goto (62yo)

                Full-time Audit & Supervisory Board Member

                • Tenure: 8.6yrs
              • Kaori Sasaki (60yo)

                Outside Director

                • Tenure: 3.6yrs

              Company Information

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


              Key Information

              • Name: Kobayashi Pharmaceutical Co., Ltd.
              • Ticker: KOY
              • Exchange: DB
              • Founded: 1886
              • Industry: Personal Products
              • Sector: Household
              • Market Cap: JP¥721.446b
              • Listing Market Cap: JP¥5.912b
              • Shares outstanding: 78.16m
              • Website: https://www.kobayashi.co.jp

              Number of Employees


              Location

              • Kobayashi Pharmaceutical Co., Ltd.
              • KDX Kobayashi Doshomachi Building
              • 4-4-10, Doshomachi
              • Osaka
              • 541-0045
              • Japan

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              4967TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYApr 1999
              KBYP.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 1999
              KOYDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1999

              Biography

              Kobayashi Pharmaceutical Co., Ltd., together with its subsidiaries, manufactures and sells consumer products in Japan and internationally. The company operates through four segments: Domestic Consumer Products Business, Overseas Consumers Products Business, Direct Marketing Business, and Other Business. The Domestic Consumer Products segment offers products that include Kurocure, a remedy for dark and rough spots on elbows and knees; keanocure, a remedy for spotted skin with darkened pores due to the removal of unwanted hair; Sawaday PINKPINK STICK, a fragrance for indoor use; Bluelet Premium PERFUME, a toilet deodorizer and bowl bleach tablet; and Oheyano Shoshugen Princess PARFUM, a deodorizing air freshener. This segment also offers Naishitol, an obesity therapeutic drug; Chikunain, a remedy for empyema and nasal congestion; Shoyo, a toothpaste for preventing periodontal disease; Hemorindo, a sublingual tablet medicine to cure blind piles; Sawaday CLIP PARFUM for automobiles; Nightmin Nasal Respiration Tape, a strip that is attached to the lips during sleep to facilitate breathing through the nose; and Eaude Muge, a medicated lotion for preventing acne and rough dry skin. The Overseas Consumer Products segment provides products, such as body warmers; Netsusama sheet, a cooling gel sheet for the forehead; and Ammeltz, an external analgesic. The Direct Marketing Business segment markets nutritional supplements and skin care products through sales promotional campaigns, such as advertising and direct mail. The Other Business segment is involved in the transportation business; manufacture and distribution of plastic containers; insurance agency operations; and real estate management, and advertising planning and production activities. Kobayashi Pharmaceutical Co., Ltd. was founded in 1886 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 Analysis2020/01/22 22:06
              End of Day Share Price2020/01/22 00:00
              Earnings2019/09/30
              Annual Earnings2018/12/31


              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.