DB:LJ1

Stock Analysis Report

Executive Summary

Core Corporation provides information and communication technology services in Japan.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LJ1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

LJ1

6.2%

DE IT

0.03%

DE Market


1 Year Return

13.2%

LJ1

-0.4%

DE IT

9.9%

DE Market

Return vs Industry: LJ1 exceeded the German IT industry which returned -0.4% over the past year.

Return vs Market: LJ1 exceeded the German Market which returned 9.9% over the past year.


Shareholder returns

LJ1IndustryMarket
7 Day2.6%6.2%0.03%
30 Day6.4%11.9%4.6%
90 Day8.0%-2.0%12.1%
1 Year15.1%13.2%0.1%-0.4%13.4%9.9%
3 Year26.8%20.4%138.5%132.3%25.6%14.6%
5 Year141.9%121.4%256.2%241.7%36.9%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LJ1 (€11.7) is trading below our estimate of fair value (€22.27)

Significantly Below Fair Value: LJ1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LJ1 is good value based on its PE Ratio (15.4x) compared to the IT industry average (30.9x).

PE vs Market: LJ1 is good value based on its PE Ratio (15.4x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LJ1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LJ1 is good value based on its PB Ratio (1.9x) compared to the DE IT industry average (4.1x).


Next Steps

Future Growth

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

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LJ1's forecast earnings growth (13.7% per year) is above the savings rate (0.2%).

Earnings vs Market: LJ1's earnings (13.7% per year) are forecast to grow faster than the German market (12.5% per year).

High Growth Earnings: LJ1's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if LJ1's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if LJ1's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LJ1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Core performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LJ1 has high quality earnings.

Growing Profit Margin: LJ1's current net profit margins (6.3%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: LJ1's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: LJ1's earnings growth over the past year (29.9%) exceeds its 5-year average (26.6% per year).

Earnings vs Industry: LJ1 earnings growth over the past year (29.9%) exceeded the IT industry 24.3%.


Return on Equity

High ROE: LJ1's Return on Equity (12.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Core's financial position?


Financial Position Analysis

Short Term Liabilities: LJ1's short term assets (¥8.6B) exceeds its short term liabilities (¥5.2B)

Long Term Liabilities: LJ1's short term assets (8.6B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: LJ1's debt to equity ratio (27.3%) is considered satisfactory

Reducing Debt: LJ1's debt to equity ratio has reduced from 59.4% to 27.3% over the past 5 years.

Debt Coverage: LJ1's debt is well covered by operating cash flow (55.3%).

Interest Coverage: LJ1 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LJ1 has a high level of physical assets or inventory.

Debt Coverage by Assets: LJ1's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.3%markettop25%3.7%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: LJ1's dividend (1.9%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: LJ1's dividend (1.9%) is low compared to the top 25% of dividend payers in the German market (3.68%).


Stability and Growth of Payments

Stable Dividend: LJ1's dividends per share have been stable in the past 10 years.

Growing Dividend: LJ1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), LJ1'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 Core's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Ryohei Tanemura (79yo)

17.4yrs

Tenure

0

Mr. Ryohei Tanemura has been the Chief Executive Officer and Chairman at Core Corporation since June 2003 and since June 2002 and has been a Representative Director since June 2002. Mr. Tanemura Joined Ja ...


Management Age and Tenure

4.6yrs

Average Tenure

61yo

Average Age

Experienced Management: LJ1's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: LJ1's board of directors are considered experienced (5.3 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ryohei Tanemura (79yo)

    Chairman and Chief Executive Officer

    • Tenure: 17.4yrs
  • Kohji Ohuchi (61yo)

    Senior Managing Executive Officer

    • Tenure: 5.3yrs
  • Masanobu Matsunami (63yo)

    Executive President

    • Tenure: 7.6yrs
  • Yuji Kohyama (54yo)

    Senior Managing Executive Officer

    • Tenure: 4.4yrs
  • Masayuki Kobayashi

    Chief of Business Administration Office and Executive Officer

    • Tenure: 0yrs
  • Naoki Amemiya

    Managing Executive Officer and President of Product Solution Company

    • Tenure: 0yrs
  • Takashi Ichikawa (58yo)

    CFO, Chief Information Officer

    • Tenure: 4.6yrs
  • Takahiro Nishide

    Executive Officer and Head of GNSS Solution Development Center

    • Tenure: 0yrs
  • Satoshi Matsuoka

    Chief of General Planning & Policy Office and Executive Officer

    • Tenure: 0yrs
  • Mamoru Nakada

    Head of Medical Solution Business Center and Executive Officer

    • Tenure: 0yrs

Board Members

  • Shogo Sakaguchi (66yo)

    External Director

    • Tenure: 5.4yrs
  • Ryozo Hayashi (71yo)

    External Director

    • Tenure: 4.4yrs
  • Ryohei Tanemura (79yo)

    Chairman and Chief Executive Officer

    • Tenure: 17.4yrs
  • Kohji Ohuchi (61yo)

    Senior Managing Executive Officer

    • Tenure: 5.3yrs
  • Toshiyuki Kinoshita (66yo)

    Director

    • Tenure: 0yrs
  • Masanobu Matsunami (63yo)

    Executive President

    • Tenure: 7.6yrs
  • Yuji Kohyama (54yo)

    Senior Managing Executive Officer

    • Tenure: 4.4yrs
  • Takashi Ichikawa (58yo)

    CFO, Chief Information Officer

    • Tenure: 4.6yrs
  • Masaaki Suzuki (68yo)

    External Director

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Core Corporation
  • Ticker: LJ1
  • Exchange: DB
  • Founded: 1969
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥20.109b
  • Listing Market Cap: JP¥167.252m
  • Shares outstanding: 14.18m
  • Website: https://www.core.co.jp

Number of Employees


Location

  • Core Corporation
  • 22-3, Sangenjaya
  • Setagaya-ku
  • Tokyo
  • 154-8552
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2359TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYMar 2003
LJ1DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2003

Biography

Core Corporation provides information and communication technology services in Japan. The company offers system integration services, which include embedded and systems development services for home applia ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 21:35
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.