DB:CB4

Stock Analysis Report

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Executive Summary

CAC Holdings Corporation, through its subsidiaries, provides information technology (IT) services worldwide.


Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CB4's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.3%

CB4

2.1%

DE IT

2.0%

DE Market


1 Year Return

-23.6%

CB4

-15.8%

DE IT

-2.6%

DE Market

Return vs Industry: CB4 underperformed the German IT industry which returned -18.4% over the past year.

Return vs Market: CB4 underperformed the German Market which returned -3.9% over the past year.


Shareholder returns

CB4IndustryMarket
7 Day14.3%2.1%2.0%
30 Day22.7%-12.8%8.4%
90 Day9.6%-9.8%-7.3%
1 Year-21.1%-23.6%-15.4%-15.8%-1.0%-2.6%
3 Year43.0%28.6%67.3%63.2%-6.6%-13.9%
5 Year62.8%35.2%192.5%180.2%1.1%-11.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

15.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CB4 (€10.8) is trading above our estimate of fair value (€6.4)

Significantly Below Fair Value: CB4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CB4 is good value based on its PE Ratio (15.2x) compared to the IT industry average (24x).

PE vs Market: CB4 is good value based on its PE Ratio (15.2x) compared to the German market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CB4's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CB4 is good value based on its PB Ratio (0.9x) compared to the DE IT industry average (3.7x).


Next Steps

Future Growth

How is CAC Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CAC Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CAC Holdings performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CB4 has a large one-off gain of ¥2.1B impacting its December 31 2019 financial results.

Growing Profit Margin: CB4's current net profit margins (3%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: CB4's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: CB4's earnings growth over the past year (13.7%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: CB4 earnings growth over the past year (13.7%) exceeded the IT industry 4.8%.


Return on Equity

High ROE: CB4's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is CAC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CB4's short term assets (¥22.5B) exceed its short term liabilities (¥12.6B).

Long Term Liabilities: CB4's short term assets (¥22.5B) exceed its long term liabilities (¥7.3B).


Debt to Equity History and Analysis

Debt Level: CB4's debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: CB4's debt to equity ratio has reduced from 17.7% to 12.3% over the past 5 years.

Debt Coverage: CB4's debt is not well covered by operating cash flow (3.3%).

Interest Coverage: CB4's interest payments on its debt are well covered by EBIT (1316x coverage).


Balance Sheet


Next Steps

Dividend

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

4.65%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CB4's dividend (4.65%) is higher than the bottom 25% of dividend payers in the German market (1.35%).

High Dividend: CB4's dividend (4.65%) is in the top 25% of dividend payers in the German market (4.05%)


Stability and Growth of Payments

Stable Dividend: CB4's dividends per share have been stable in the past 10 years.

Growing Dividend: CB4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), CB4'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?

9.3yrs

Average management tenure


CEO

Akihiko Sako (59yo)

9.33yrs

Tenure

Mr. Akihiko Sako has been President, Chief Executive Officer and Representative Director at CAC Holdings Corporation since January 2011. Mr. Sako served as Corporate Officer of CAC Corporation. He joined ...


Leadership Team

NamePositionTenureCompensationOwnership
Akihiko Sako
President9.33yrsno data0.13% ¥208.5k
Bin Cheng
Managing Executive Officerno datano datano data
Malcolm Mehta
Managing Executive Officerno datano datano data
Ryota Nishimori
Managing Executive Officerno datano datano data
Togo Shimizu
Senior MD & Directorno datano data0.030% ¥49.7k
Hirokazu Nagakura
Executive Officer and Manager of Service Business Unit 9.33yrsno datano data
Toshihiro Adachi
Executive Officer and General Manager of Medical Sales Division 6.33yrsno datano data
Ikki Kawamata
Executive Officer10.08yrsno datano data

9.3yrs

Average Tenure

57yo

Average Age

Experienced Management: CB4's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Akihiko Sako
President9.33yrsno data0.13% ¥208.5k
Togo Shimizu
Senior MD & Directorno datano data0.030% ¥49.7k
Tokihiko Mori
Independent Outside Director2.17yrsno datano data
Hirokazu Honda
Outside Corporate Auditor3.17yrsno datano data
Yukiko Kuroda
Independent Outside Director9.17yrsno datano data
Kazuki Kawamata
Corporate Auditorno datano data0.030% ¥49.7k
Michitaka Hirose
Outside Director9.17yrsno datano data
Masaaki Yoshida
Corporate Auditor3.17yrsno datano data
Yuichi Ishino
Outside Corporate Auditor1.17yrsno datano data

3.2yrs

Average Tenure

59yo

Average Age

Experienced Board: CB4's board of directors are considered experienced (3.2 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: CAC Holdings Corporation
  • Ticker: CB4
  • Exchange: DB
  • Founded: 1966
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥19.210b
  • Listing Market Cap: JP¥164.036m
  • Shares outstanding: 16.52m
  • Website: https://www.cac-holdings.com

Number of Employees


Location

  • CAC Holdings Corporation
  • 24-1, Nihonbashi-Hakozaki-cho
  • Chuo-ku
  • Tokyo
  • 103-0015
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CB4DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1999
4725TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJul 1999

Biography

CAC Holdings Corporation, through its subsidiaries, provides information technology (IT) services worldwide. The company offers systems development, integration, operation, and management services, as well as human resource BPO/BTO services; mainframe, open system, Web-based system, and IT management solutions; and system consulting, and software planning and development services, as well as develops various kinds of hardware and software for factories. It also provides system planning and design, helpdesk, IT infrastructure, and warranty management services; technologies and information on the Internet; and drug development support services, as well as develops and sells packaged software. The company was founded in 1966 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 Analysis2020/05/25 20:48
End of Day Share Price2020/05/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.