DB:DPA

Stock Analysis Report

Executive Summary

Daito Pharmaceutical Co.,Ltd. manufactures and sells pharmaceutical products worldwide.

Rewards

Trading at 57.4% below its fair value

Earnings are forecast to grow 6.37% per year

Earnings grew by 22.9% over the past year

Risk Analysis

No risks detected for DPA from our risk checks.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-13.3%

DPA

-9.0%

DE Pharmaceuticals

-9.1%

DE Market


1 Year Return

10.3%

DPA

6.1%

DE Pharmaceuticals

2.9%

DE Market

Return vs Industry: DPA exceeded the German Pharmaceuticals industry which returned 6.1% over the past year.

Return vs Market: DPA exceeded the German Market which returned 2.9% over the past year.


Shareholder returns

DPAIndustryMarket
7 Day-13.3%-9.0%-9.1%
30 Day-15.1%-8.3%-7.2%
90 Day-3.9%1.1%-6.5%
1 Year11.7%10.3%9.8%6.1%6.1%2.9%
3 Year34.1%29.4%28.1%14.1%3.5%-5.6%
5 Year39.9%31.8%27.7%7.1%8.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Daito PharmaceuticalLtd 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: DPA (€24.8) is trading below our estimate of fair value (€58.26)

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


Price To Earnings Ratio

PE vs Industry: DPA is good value based on its PE Ratio (10x) compared to the Pharmaceuticals industry average (23.1x).

PE vs Market: DPA is good value based on its PE Ratio (10x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: DPA is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: DPA is good value based on its PB Ratio (1.2x) compared to the DE Pharmaceuticals industry average (2.1x).


Next Steps

Future Growth

How is Daito PharmaceuticalLtd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPA's forecast earnings growth (6.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: DPA's earnings (6.4% per year) are forecast to grow slower than the German market (13.1% per year).

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

Revenue vs Market: DPA's revenue (4.5% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: DPA's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DPA's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Daito PharmaceuticalLtd performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DPA has high quality earnings.

Growing Profit Margin: DPA's current net profit margins (8.7%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: DPA's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: DPA's earnings growth over the past year (22.9%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: DPA earnings growth over the past year (22.9%) exceeded the Pharmaceuticals industry -0.3%.


Return on Equity

High ROE: DPA's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Daito PharmaceuticalLtd's financial position?


Financial Position Analysis

Short Term Liabilities: DPA's short term assets (¥28.0B) exceed its short term liabilities (¥13.3B).

Long Term Liabilities: DPA's short term assets (¥28.0B) exceed its long term liabilities (¥3.0B).


Debt to Equity History and Analysis

Debt Level: DPA's debt to equity ratio (11.9%) is considered satisfactory.

Reducing Debt: DPA's debt to equity ratio has reduced from 44.6% to 11.9% over the past 5 years.

Debt Coverage: DPA's debt is well covered by operating cash flow (187.7%).

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


Balance Sheet

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

Debt Coverage by Assets: DPA's debt is covered by short term assets (assets are 7x debt).


Next Steps

Dividend

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

1.31%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Daito PharmaceuticalLtd before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.9%industryaverage3.0%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: DPA's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: DPA's dividend (1.31%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.5%), DPA's dividend payments are thoroughly 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?

12.5yrs

Average board tenure


CEO

Yasunobu Otsuga (69yo)

0

Mr. Yasunobu Otsuga has been the President of Daito Pharmaceutical Co., Ltd. since August 2012 and serves as its Chief Executive Officer. Mr. Otsuga Joined Daito Pharmaceutical Co., Ltd. In March 1975. Mr. ...


Board Members

NamePositionTenureCompensationOwnership
Yasunobu Otsuga
CEO, President & Representative Director0yrsno data2.46% ¥8.0m
Junichi Kikuta
Senior MD & Director7.5yrsno data0.12% ¥389.2k
Hideyuki Kato
VP & Director18.4yrsno datano data
Hitoshi Hori
External Director0yrsno data0.13% ¥416.7k
Michio Tsuda
Director0yrsno data0.27% ¥875.1k
Ichizo Yamamoto
External Director0yrsno datano data

12.5yrs

Average Tenure

69yo

Average Age

Experienced Board: DPA's board of directors are seasoned and experienced ( 12.5 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

Daito Pharmaceutical Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Daito Pharmaceutical Co.,Ltd.
  • Ticker: DPA
  • Exchange: DB
  • Founded: 1942
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: JP¥39.243b
  • Listing Market Cap: JP¥324.967m
  • Shares outstanding: 12.82m
  • Website: https://www.daitonet.co.jp

Number of Employees


Location

  • Daito Pharmaceutical Co.,Ltd.
  • 326, Yokamachi
  • Toyama
  • Toyama
  • 939-8567
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4577TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYMar 2010
DPADB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2010

Biography

Daito Pharmaceutical Co.,Ltd. manufactures and sells pharmaceutical products worldwide. The company offers various active pharmaceutical ingredients and intermediates, prescription drugs, OTC drugs, and home-delivery medicines; formulations in various forms, such as tablets, capsules, troches, granules, and powders; and contract manufacturing services for formulations of medicinal products to pharmaceutical companies. It also sells health food products. The company was formerly known as Daito Corporation and changed its name to Daito Pharmaceutical Co.,Ltd. in 1992. Daito Pharmaceutical Co.,Ltd. was founded in 1942 and is headquartered in Toyama, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 21:58
End of Day Share Price2020/02/27 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.