DB:OJI

Stock Analysis Report

Executive Summary

Oji Holdings Corporation, together with its subsidiaries, engages in the pulp and paper business Japan and internationally.

Rewards

Trading at 2.4% below its fair value

Earnings are forecast to grow 8.46% per year

Earnings grew by 33.5% over the past year

Pays a reliable dividend of 2.45%

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.5%

OJI

-3.0%

DE Forestry

0.1%

DE Market


1 Year Return

-9.9%

OJI

1.0%

DE Forestry

14.1%

DE Market

Return vs Industry: OJI underperformed the German Forestry industry which returned 2.1% over the past year.

Return vs Market: OJI underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

OJIIndustryMarket
7 Day-6.5%-3.0%0.1%
30 Day0.4%1.1%0.2%
90 Day-4.8%-2.9%3.3%
1 Year-7.9%-9.9%5.7%1.0%17.6%14.1%
3 Year13.0%7.0%32.8%-9.8%14.8%4.8%
5 Year45.6%32.0%83.8%16.7%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OJI (€4.72) is trading below our estimate of fair value (€4.84)

Significantly Below Fair Value: OJI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OJI is good value based on its PE Ratio (9.4x) compared to the Forestry industry average (11.2x).

PE vs Market: OJI is good value based on its PE Ratio (9.4x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: OJI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: OJI is good value based on its PB Ratio (0.8x) compared to the XE Forestry industry average (1.1x).


Next Steps

Future Growth

How is Oji Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OJI's forecast earnings growth (8.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: OJI's earnings (8.5% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: OJI's revenue (1.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: OJI's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OJI's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Oji Holdings performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OJI has high quality earnings.

Growing Profit Margin: OJI's current net profit margins (4%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: OJI's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: OJI's earnings growth over the past year (33.5%) exceeds its 5-year average (25.7% per year).

Earnings vs Industry: OJI earnings growth over the past year (33.5%) exceeded the Forestry industry -11.4%.


Return on Equity

High ROE: OJI's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Oji Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: OJI's short term assets (¥684.8B) exceed its short term liabilities (¥573.4B).

Long Term Liabilities: OJI's short term assets (¥684.8B) exceed its long term liabilities (¥532.3B).


Debt to Equity History and Analysis

Debt Level: OJI's debt to equity ratio (73.1%) is considered high.

Reducing Debt: OJI's debt to equity ratio has reduced from 119% to 73.1% over the past 5 years.

Debt Coverage: OJI's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: OJI's interest payments on its debt are well covered by EBIT (136.2x coverage).


Balance Sheet

Inventory Level: OJI has a high level of physical assets or inventory.

Debt Coverage by Assets: OJI's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

2.45%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Oji Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.3%markettop25%3.6%industryaverage4.2%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: OJI's dividend (2.45%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: OJI's dividend (2.45%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), OJI'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?

1.1yrs

Average management tenure


CEO

Masatoshi Kaku 0

0.8yrs

Tenure

0

Mr. Masatoshi Kaku serves as Group Chief Executive Officer & President at Oji Holdings Corporation April 01, 2019. He had been an Deputy General Manager, Corporate Governance Div. (Safety Dept,Environmenta ...


Leadership Team

NamePositionTenureCompensationOwnership
Masatoshi Kaku
Group CEO0.8yrsno data0.0031% ¥149.2k
Ryoji Watari
Executive VP & Director0yrsno data0.010% ¥481.6k
Shoji Fujiwara
Senior Executive Officer & Director2.6yrsno data0.0014% ¥67.2k
Yoshiki Koseki
Senior Executive Officer & Director0yrsno data0.0040% ¥192.6k
Yoshiaki Takeda
Senior Executive Officer2.6yrsno data0.0016% ¥77.2k
Ryuichi Kisaka
Senior Executive Officer & Director4.7yrsno data0.0029% ¥139.7k
Masaru Yokoyama
Senior Executive Officer & GM of Innovation Promotion Division1.1yrsno datano data
Hiroyuki Isono
Executive Officer & Director4.7yrsno data0.0034% ¥163.5k
Kazuhiko Kamada
Executive Officer & Director4.7yrsno data0.0025% ¥120.6k
Koichi Ishida
Executive Officer0yrsno data0.0015% ¥72.5k

1.1yrs

Average Tenure

Experienced Management: OJI's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Masatoshi Kaku
Group CEO0.8yrsno data0.0031% ¥149.2k
Ryoji Watari
Executive VP & Director0yrsno data0.010% ¥481.6k
Shoji Fujiwara
Senior Executive Officer & Director2.6yrsno data0.0014% ¥67.2k
Yoshiki Koseki
Senior Executive Officer & Director0yrsno data0.0040% ¥192.6k
Yoshiaki Takeda
Senior Executive Officer2.6yrsno data0.0016% ¥77.2k
Ryuichi Kisaka
Senior Executive Officer & Director4.7yrsno data0.0029% ¥139.7k
Hiroyuki Isono
Executive Officer & Director4.7yrsno data0.0034% ¥163.5k
Kazuhiko Kamada
Executive Officer & Director4.7yrsno data0.0025% ¥120.6k
Koichi Ishida
Executive Officer0yrsno data0.0015% ¥72.5k
Susumu Yajima
Chairman of the Board1.1yrsno data0.013% ¥626.0k

3.6yrs

Average Tenure

Experienced Board: OJI's board of directors are considered experienced (3.6 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

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


Key Information

  • Name: Oji Holdings Corporation
  • Ticker: OJI
  • Exchange: DB
  • Founded: 1873
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: JP¥566.280b
  • Listing Market Cap: JP¥4.768b
  • Shares outstanding: 990.00m
  • Website: https://www.ojiholdings.co.jp

Number of Employees


Location

  • Oji Holdings Corporation
  • 7-5, Ginza 4-chome
  • Chuo-ku
  • Tokyo
  • 104-0061
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OJIP.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 1991
OJIP.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
3861TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
OJIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Oji Holdings Corporation, together with its subsidiaries, engages in the pulp and paper business Japan and internationally. It operates in four segments: Household and Industrial Materials, Functional Materials, Forest Resources and Environment Marketing, and Printing and Communications Media. The Household and Industrial Materials segment offers containerboards, corrugated containers, boxboard and corrugated cartons, packaging papers, paper bags, household paper, and disposable papers. It also provides tissue, toilet tissue, paper diapers, and wet wipes. The Functional Materials segment offers specialty paper, thermal paper, adhesive products, and films. The Forest Resources and Environment Marketing segment engages in the pulp, energy, plantation, and lumber processing. The Printing and Communications Media segment provides newsprint, printing, publication, and communication paper. The company also engages in the real estate, engineering, trading, logistics, businesses, etc. The company was formerly known as Oji Paper Co., Ltd. and changed its name to Oji Holdings Corporation in October 2012. Oji Holdings Corporation was founded in 1873 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 Analysis2020/02/18 21:16
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.