DB:NZE

Stock Analysis Report

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Executive Summary

ZEON Corporation engages in the elastomers, specialty materials, and other businesses.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

NZE

7.5%

DE Chemicals

5.0%

DE Market


1 Year Return

-2.0%

NZE

-6.2%

DE Chemicals

4.1%

DE Market

Return vs Industry: NZE exceeded the German Chemicals industry which returned -11.2% over the past year.

Return vs Market: NZE underperformed the German Market which returned 0.5% over the past year.


Shareholder returns

NZEIndustryMarket
7 Day-1.7%7.5%5.0%
30 Day7.6%16.5%13.8%
90 Day2.4%5.3%3.3%
1 Year0.09%-2.0%-5.8%-6.2%5.8%4.1%
3 Year-7.9%-12.4%-22.5%-28.1%-0.9%-8.5%
5 Year16.3%6.9%-14.2%-25.5%10.5%-3.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

11.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NZE (€8.5) is trading above our estimate of fair value (€3.77)

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


Price To Earnings Ratio

PE vs Industry: NZE is good value based on its PE Ratio (11.5x) compared to the Chemicals industry average (18.6x).

PE vs Market: NZE is good value based on its PE Ratio (11.5x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: NZE is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NZE is good value based on its PB Ratio (0.9x) compared to the DE Chemicals industry average (1.5x).


Next Steps

Future Growth

How is ZEON forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZE's forecast earnings growth (8.3% per year) is above the savings rate (0.2%).

Earnings vs Market: NZE's earnings (8.3% per year) are forecast to grow slower than the German market (21.8% per year).

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

Revenue vs Market: NZE's revenue (1.6% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: NZE's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZE's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has ZEON performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZE has high quality earnings.

Growing Profit Margin: NZE's current net profit margins (6.3%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: NZE's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: NZE's earnings growth over the past year (9.5%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: NZE earnings growth over the past year (9.5%) exceeded the Chemicals industry -16.7%.


Return on Equity

High ROE: NZE's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is ZEON's financial position?


Financial Position Analysis

Short Term Liabilities: NZE's short term assets (¥214.4B) exceed its short term liabilities (¥112.4B).

Long Term Liabilities: NZE's short term assets (¥214.4B) exceed its long term liabilities (¥32.4B).


Debt to Equity History and Analysis

Debt Level: NZE's debt to equity ratio (8.1%) is considered satisfactory.

Reducing Debt: NZE's debt to equity ratio has reduced from 27.3% to 8.1% over the past 5 years.

Debt Coverage: NZE's debt is well covered by operating cash flow (135.6%).

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


Balance Sheet


Next Steps

Dividend

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

1.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NZE's dividend (1.98%) is higher than the bottom 25% of dividend payers in the German market (1.27%).

High Dividend: NZE's dividend (1.98%) is low compared to the top 25% of dividend payers in the German market (3.86%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.7%), NZE'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

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average board tenure


CEO

Kimiaki Tanaka (64yo)

7yrs

Tenure

Mr. Kimiaki Tanaka has been President of Zeon Corp., since June 2013. Mr. Tanaka served as Senior Corporate Officer of Zeon Corp. since June 2011. Mr. Tanaka served as General Manager of Specialty Material ...


Board Members

NamePositionTenureCompensationOwnership
Kimiaki Tanaka
President & Representative Director7yrsno data0.029% ¥558.6k
Kazuyoshi Matsuura
Corporate Officer1.42yrsno data0.00046% ¥8.8k
Hiroyuki Hirakawa
Senior Corporate Officer11yrsno data0.014% ¥270.5k
Toru Nishijima
Senior Corporate Officer5yrsno data0.010% ¥192.1k
Sachio Hayashi
Senior Corporate Officerno datano data0.016% ¥314.2k
Hiroshi Fujisawa
Corporate Officerno datano data0.0037% ¥69.8k
Haruo Ito
Independent External Director9yrsno data0.0041% ¥78.6k
Tadanobu Nagumo
Independent External Director5yrsno data0.0041% ¥78.6k
Naozumi Furukawa
Chairman7yrsno data0.058% ¥1.1m
Takao Kitabata
External Director6yrsno datano data

6.5yrs

Average Tenure

60yo

Average Age

Experienced Board: NZE's board of directors are considered experienced (6.5 years average tenure).


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

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


Key Information

  • Name: ZEON Corporation
  • Ticker: NZE
  • Exchange: DB
  • Founded: 1950
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: JP¥231.674b
  • Listing Market Cap: JP¥1.908b
  • Shares outstanding: 218.56m
  • Website: https://www.zeon.co.jp

Number of Employees


Location

  • ZEON Corporation
  • Shin Marunouchi Center Building
  • 1-6-2 Marunouchi
  • Tokyo
  • 100-8246
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4205TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NZEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

ZEON Corporation engages in the elastomers, specialty materials, and other businesses. The company offers synthetic rubbers, such as general-purpose rubbers for use in automobile tire applications; and various specialty rubbers, including NBR and hydrogenated NBR. It also provides synthetic latex comprising styrene-butadiene copolymer latex, polybutadiene, acrylonitrile butadiene copolymer latex, acrylate latex, and soap-free latex for use in processed paper, fiber treatment agents, adhesives, paints, and rubber gloves; and materials for adhesive tapes and hot melt adhesives, binder for traffic paints, and concrete admixtures. In addition, the company offers specialty chemicals, such as synthetic aroma chemicals for flavors and fragrances; cyclopentene, cyclopentanone, and other derivatives for chemical synthesis; intermediates for pharmaceuticals and agrochemicals; and solvents, cleaning agents, and urethane foaming agents. Further, it provides electronic materials, rechargeable battery materials, and toners for the production of semiconductors, etching gas, and materials used in rechargeable battery production; and specialty plastics that include cyclo-olefin polymers and fine processed products with cyclo-olefin polymer for use in optical lenses, medical devices, and various general-purpose engineering plastics. Additionally, the company develops, manufactures, and sells cardiovascular and gastrointestinal medical equipment, as well as nutritional products; and licenses butadiene recovery and butene purification process technologies in approximately 23 countries worldwide. It also offers PENTAM, a resource- and energy-saving molded product. The company was founded in 1950 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 Analysis2020/06/03 22:04
End of Day Share Price2020/06/03 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.