DB:KKA

Stock Analysis Report

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Executive Summary

Kaneka Corporation manufactures and sells chemicals, functional plastics, expandable plastics and products, foodstuffs products, life science products, electronic products, and synthetic fibers in Japan and internationally.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KKA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

KKA

7.9%

DE Chemicals

4.3%

DE Market


1 Year Return

n/a

KKA

-10.0%

DE Chemicals

0.3%

DE Market

Return vs Industry: Insufficient data to determine how KKA performed against the German Chemicals industry.

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


Shareholder returns

KKAIndustryMarket
7 Day4.3%7.9%4.3%
30 Day4.3%5.6%7.4%
90 Day2.5%-1.1%-0.2%
1 Yearn/a-9.7%-10.0%2.0%0.3%
3 Year-22.9%-28.3%-28.2%-33.3%-5.0%-12.3%
5 Year-14.2%-23.5%-19.6%-30.3%4.2%-9.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Kaneka 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: KKA (€24.2) is trading below our estimate of fair value (€61.35)

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


Price To Earnings Ratio

PE vs Industry: KKA is good value based on its PE Ratio (13.6x) compared to the Chemicals industry average (17.9x).

PE vs Market: KKA is good value based on its PE Ratio (13.6x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: KKA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: KKA is good value based on its PB Ratio (0.6x) compared to the DE Chemicals industry average (1.5x).


Next Steps

Future Growth

How is Kaneka forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KKA's forecast earnings growth (9.2% per year) is above the savings rate (0.2%).

Earnings vs Market: KKA's earnings (9.2% per year) are forecast to grow slower than the German market (22.5% per year).

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

Revenue vs Market: KKA's revenue (1.3% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: KKA's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KKA's Return on Equity is forecast to be low in 3 years time (4.3%).


Next Steps

Past Performance

How has Kaneka performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KKA has high quality earnings.

Growing Profit Margin: KKA's current net profit margins (2.3%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: KKA's earnings have declined by -2.7% per year over the past 5 years.

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

Earnings vs Industry: KKA had negative earnings growth (-36.9%) over the past year, making it difficult to compare to the Chemicals industry average (-16.7%).


Return on Equity

High ROE: KKA's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Kaneka's financial position?


Financial Position Analysis

Short Term Liabilities: KKA's short term assets (¥306.9B) exceed its short term liabilities (¥211.6B).

Long Term Liabilities: KKA's short term assets (¥306.9B) exceed its long term liabilities (¥87.6B).


Debt to Equity History and Analysis

Debt Level: KKA's debt to equity ratio (37.3%) is considered satisfactory.

Reducing Debt: KKA's debt to equity ratio has increased from 36.5% to 37.3% over the past 5 years.

Debt Coverage: KKA's debt is well covered by operating cash flow (30.3%).

Interest Coverage: KKA's interest payments on its debt are well covered by EBIT (805.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KKA's dividend (3.42%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: KKA's dividend (3.42%) is low compared to the top 25% of dividend payers in the German market (4.07%).


Stability and Growth of Payments

Stable Dividend: KKA's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.2%), KKA's dividend payments are 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?

2.9yrs

Average board tenure


CEO

Mamoru Kadokura

no data

Tenure

Mr. Mamoru Kadokura serves as the President of Kaneka Corporation. Mr. Kadokura served as a Managing Executive Officer of Kaneka Corporation and served as its Executive Officer. Mr. Kadokura serves as a Re ...


Board Members

NamePositionTenureCompensationOwnership
Mamoru Kadokura
President & Representative Directorno datano data0.012% ¥197.4k
Shinobu Ishihara
Senior Managing Exec. Officerno datano data0.0092% ¥148.0k
Akira Iwazawa
Senior Managing Corporate Executive Officerno datano data0.011% ¥175.2k
Minoru Tanaka
Executive VP & Representative Directorno datano data0.011% ¥172.6k
Shinichiro Kametaka
Senior Managing Executive Officerno datano data0.0092% ¥148.0k
Kazuhiko Fujii
Managing Exec. Officer & Director3.92yrsno data0.0025% ¥39.5k
Jun Enoki
Managing Executive Officer & Director0.92yrno data0.0017% ¥27.2k
Katsunobu Doro
Managing Executive Officer & Director0.92yrno data0.0035% ¥56.7k
Yasuaki Nuri
Senior Managing Corporate Executive Officer & Director2.92yrsno data0.0043% ¥69.1k
Kimikazu Sugawara
Chairmanno datano data0.013% ¥212.2k

2.9yrs

Average Tenure

Experienced Board: KKA's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Kaneka Corporation
  • Ticker: KKA
  • Exchange: DB
  • Founded: 1949
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: JP¥190.241b
  • Listing Market Cap: JP¥1.607b
  • Shares outstanding: 65.15m
  • Website: https://www.kaneka.co.jp

Number of Employees


Location

  • Kaneka Corporation
  • 1-12-32, Akasaka
  • Minato-ku
  • Tokyo
  • 107-6028
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4118TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
KANK.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
KKADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Kaneka Corporation manufactures and sells chemicals, functional plastics, expandable plastics and products, foodstuffs products, life science products, electronic products, and synthetic fibers in Japan and internationally. The company offers chemical products, polyvinyl chloride (PVC), crosslinked PVC, vinyl chloride-vinyl acetate copolymers, paste PVC, acryl grafted-vinyl chloride copolymer, chlorinated PVC, and PVC compounds. It also provides impact modifiers, heat-resistance modifiers, and processing aid resins for PVC; silyl-terminated polyethers; acrylic silicon polymers; liquid polymers for elastic adhesives; terminally reactive liquid acrylic polymers; telechelic polyacrylates; thermal conductivity engineering plastics compounds; engineering resins for injection molding; weather-resistant acrylic films; isobutylene-based thermoplastic elastomers; and toughness-enhancing masterbatches for epoxy resins. In addition, the company offers polypropylene foams, expandable polystyrene, polystyrene foam boards, and Kanelite Foam products, as well as wooden house construction systems; and polyimide films, high thermal conductive graphite sheets, bonded magnets, multi-layer insulation products, and transparent films for optical use. Further, it provides thin-film silicon photovoltaic modules; performance fibers comprising hair accessory products, pile eco fur and toy, and flame-retardant materials; catheters for intravascular treatment, testing equipment, blood purification systems, ophthalmic medical devices, regenerative and cell medicine, and regenerative medicines; and intermediates, chromatography resins, functional foodstuffs, contracted manufacturing and services, and drug discovery search for biopharmaceuticals. Additionally, the company offers margarine, shortening, cacao butter substitute, whipping cream, bakery yeast, and spices, as well as cream for kneading and other uses. Kaneka Corporation was founded in 1949 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 08:13
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.