DB:OR7

Stock Analysis Report

Executive Summary

Oricon Inc. engages in the communication, mobile, publishing, and other businesses in Japan.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

OR7

-2.5%

DE Interactive Media and Services

1.4%

DE Market


1 Year Return

302.8%

OR7

15.6%

DE Interactive Media and Services

3.7%

DE Market

Return vs Industry: OR7 exceeded the German Interactive Media and Services industry which returned 15.6% over the past year.

Return vs Market: OR7 exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

OR7IndustryMarket
7 Day-1.7%-2.5%1.4%
30 Day-6.3%-2.4%1.8%
90 Day7.7%-1.0%3.4%
1 Year309.8%302.8%16.8%15.6%7.0%3.7%
3 Year426.0%383.3%39.1%34.2%18.5%8.3%
5 Year500.2%418.8%-45.6%-52.6%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OR7 (€11.6) is trading below our estimate of fair value (€12)

Significantly Undervalued: OR7 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OR7 is poor value based on its PE Ratio (29.8x) compared to the Interactive Media and Services industry average (27.5x).

PE vs Market: OR7 is poor value based on its PE Ratio (29.8x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: OR7 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: OR7 is overvalued based on its PB Ratio (7.6x) compared to the XE Interactive Media and Services industry average (2.6x).


Next Steps

Future Growth

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

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OR7's forecast earnings growth (14.5% per year) is above the savings rate (0.2%).

Earnings vs Market: OR7's earnings (14.5% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: OR7's earnings are forecast to grow, but not significantly.

Revenue vs Market: OR7's revenue (6.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: OR7's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OR7's Return on Equity is forecast to be high in 3 years time (23.5%)


Next Steps

Past Performance

How has Oricon performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OR7's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: OR7's earnings growth over the past year (62.3%) exceeds its 5-year average (25.6% per year).

Earnings vs Industry: OR7 earnings growth over the past year (62.3%) exceeded the Interactive Media and Services industry 15.5%.


Return on Equity

High ROE: OR7's Return on Equity (25.8%) is considered high.


Return on Assets

ROA vs Industry: OR7 has a higher Return on Assets than the Interactive Media and Services industry average last year.


Return on Capital Employed

ROCE Improving: OR7 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Oricon's financial position?


Financial Position Analysis

Short Term Liabilities: OR7's short term assets (¥2.5B) exceeds its short term liabilities (¥716.0M)

Long Term Liabilities: OR7's short term assets (2.5B) exceeds its long term liabilities (22.0M)


Debt to Equity History and Analysis

Debt Level: OR7's debt to equity ratio (7.4%) is considered satisfactory

Reducing Debt: OR7's debt to equity ratio has reduced from 89.5% to 7.4% over the past 5 years.

Debt Coverage: OR7's debt is well covered by operating cash flow (477.9%).

Interest Coverage: OR7 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: OR7 has a low level of unsold assets or inventory.

Debt Coverage by Assets: OR7's debt is covered by short term assets (assets are 12.947360x debt).


Next Steps

Dividend

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

1.20%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OR7's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: OR7's dividend (1.2%) is low compared to the top 25% of dividend payers in the German market (3.8%).

Stable Dividend: Whilst dividend payments have been stable, OR7 has been paying a dividend for less than 10 years.

Growing Dividend: OR7's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.3%), OR7'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 Oricon's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Koh Koike (54yo)

17.3yrs

Tenure

0

Mr. Koh Koike has been the President and Chief Executive Officer of Oricon Inc. since June 2002. Mr. Koike has been the President of ORWI, Inc. since December 2006. He served as the President and a Represe ...


Management Age and Tenure

3.1yrs

Average Tenure

Experienced Management: OR7's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

11.3yrs

Average Tenure

61yo

Average Age

Experienced Board: OR7's board of directors are seasoned and experienced ( 11.3 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


Management Team

  • Koh Koike (54yo)

    Chief Executive Officer

    • Tenure: 17.3yrs
  • Takeaki Harada (50yo)

    Executive Officer

    • Tenure: 2.9yrs
  • Toshiya Nabata

    General Manager of Personnel & General Affairs Division and Executive Officer

    • Tenure: 3.3yrs
  • Teruaki Hidaka

    Executive Officer and Manager of Corporate Public Relations Department

    • Tenure: 0yrs
  • Mitsuhiro Someya

    Executive Officer

    • Tenure: 2.9yrs
  • Hisashi Hamamoto

    General Manager of Accounting Division and Executive Officer

    • Tenure: 0yrs

Board Members

  • Koh Koike (54yo)

    Chief Executive Officer

    • Tenure: 17.3yrs
  • Katsuya Taruishi (65yo)

    Director

    • Tenure: 6.3yrs
  • Yoshiaki Tokko (52yo)

    External Director

    • Tenure: 11.3yrs
  • Shigeru Takahashi (58yo)

    Director

    • Tenure: 13.3yrs
  • Seiichi Mizuno (73yo)

    External Director

    • Tenure: 13.3yrs
  • Keiichi Ishizaka (74yo)

    External Director

    • Tenure: 0yrs
  • Naoyuki Yahata (58yo)

    Standing Corporate Auditor

    • Tenure: 0yrs
  • Satoshi Nishijima (50yo)

    External Corporate Auditor

    • Tenure: 0yrs
  • Masahiko Maeda (64yo)

    Director

    • Tenure: 3.3yrs
  • Toru Ishijima (67yo)

    External Corporate Auditor

    • Tenure: 3.3yrs

Company Information

Oricon Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oricon Inc.
  • Ticker: OR7
  • Exchange: DB
  • Founded: 1999
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: JP¥19.459b
  • Listing Market Cap: JP¥160.974m
  • Shares outstanding: 13.79m
  • Website: https://www.oricon.jp

Number of Employees


Location

  • Oricon Inc.
  • 6-8-10 Roppongi
  • Minato-ku
  • Tokyo
  • 106-0032
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4800JASDAQ (TSE JASDAQ)YesCommon StockJPJPYNov 2000
OR7DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2000

Biography

Oricon Inc. engages in the communication, mobile, publishing, and other businesses in Japan. The company is involved in the operation of Oricon News, a Web media; and various sites. It also provides mobile ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:55
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.