Discounted Cash Flow Calculation for BST:5KF using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Tanaka Chemical's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Tanaka Chemical 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Chemicals industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Tanaka Chemical's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Tanaka Chemical's earnings growth to the Germany market average as no estimate data is available.
Unable to compare Tanaka Chemical's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if Tanaka Chemical is high growth as no earnings estimate data is available.
Unable to determine if Tanaka Chemical is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
In this section we usually display a company’s past earnings and revenues to help investors visualise the trend through time. We also gauge the company’s performance by benchmarking its returns and growth to its industry peers and the wider market. However, Tanaka Chemical has not provided sufficient past data to assess its track record.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have historical data. You can see them here.
Show me the analysis anyway
Tanaka Chemical's last earnings update was 2956 days ago.
The past performance of a company can be measured by how much
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
Tanaka Chemical's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
Insufficient past earnings data to establish if Tanaka Chemical's year on year earnings growth rate was positive over the past 5 years.
Unable to compare Tanaka Chemical's 1-year growth to the 5-year average as past earnings data has not been reported.
Unable to compare Tanaka Chemical's 1-year growth to the DE Chemicals industry average as past earnings data has not been reported.
Earnings and Revenue History
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
Tanaka Chemical's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
In this section we usually analyse Tanaka Chemical's finance health to determine how well-positioned it is against times of financial distress, in particular, its ability to manage its cash and debt levels. Tanaka Chemical has not provided adequate balance sheet data, its financial health cannot be properly assessed as it.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have financial information. You can see them here.
Show me the analysis anyway
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Tanaka Chemical's finances.
The net worth of a company is the difference between its assets and liabilities.
Unable to compare short term assets to short term liabilities as Tanaka Chemical has not reported sufficient balance sheet data.
Unable to establish if Tanaka Chemical's long term commitments exceed its cash and other short term assets as Tanaka Chemical has not reported sufficient balance sheet data.
This treemap shows a more detailed breakdown of
Tanaka Chemical's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Unable to establish if Tanaka Chemical has a high level of physical assets or inventory without balance sheet data.
Unable to verify if debt is covered by short term assets as Tanaka Chemical has not reported sufficient balance sheet data.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
All data from Tanaka Chemical Company Filings, last reported 8 years ago.
BST:5KF Past Debt and Equity Data
Date (Data in JPY Millions)
Cash & Short Term Investments
Unable to establish if Tanaka Chemical's level of debt is high without past debt data.
Unable to establish if Tanaka Chemical's debt level has increased without past 5-year debt data.
Unable to verify if debt is well covered by operating cash flow as Tanaka Chemical has not reported sufficient balance sheet data.
Unable to confirm if the interest payments on Tanaka Chemical's debt are well covered by earnings due to lack of past financial data.
Investors tend to look at the financial health of a company this size in order to assess the sustainability of its current operations. Tanaka Chemical's cash and debt levels may be found in its annual reports archived here.
Financial health is measured at one point in time, so the latest financial report is the best representation of the company’s current financial status. Check when Tanaka Chemical's financial data was last updated here.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Tamotsu Tanaka has been Chief Executive Officer of Tanaka Chemical Corporation since October 2011. Mr. Tanaka served as the President of Tanaka Chemical Corp. since April 2008. Mr. Tanaka served as an Managing Executive Officer of Aichi Tokei Denki Co., Ltd and served its Executive Officer. He joined Tanaka Chemical Corporation in March 1977 and also served as its Manager of Technological Development Department since August 1986, Managing Director since June 1992, Senior Managing Director since June 1993, President since May 1994, General Manager of Technological Development Division since April 2001, Head of Technology Group since June 2003 and Executive In-charge of Sales & Raw Materials Purchasing since April 2008. He served as President of K.K. Maruro since May 1994. He joined Nikki-Universal Co., Ltd. in April 1972. Mr. Tanaka has been Representative Director of Tanaka Chemical Corporation since July 1987 and K.K. Maruro since July 1997. He served as a Director of Aichi Tokei Denki Co., Ltd. He served as Representative Director of K.K. Maruro since May 1994.
Insufficient data for Tamotsu to compare compensation growth.
Insufficient data for Tamotsu to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Chief Executive Officer
Senior Managing Executive Officer
Executive Officer and Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Tanaka Chemical board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Tanaka Chemical Corporation manufactures and sells positive electrode materials for rechargeable batteries in Japan. The company offers positive electrode materials for lithium-ion batteries and nickel-metal hydride batteries. It also manufactures and sells catalyst materials and inorganic chemical products. The company was founded in 1956 and is headquartered in Fukui, Japan.
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