Discounted Cash Flow Calculation for BST:0OZ using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BST:0OZ DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Ohizumi Mfg's share price is below the future cash flow value, and at a moderate discount (> 20%).
Ohizumi Mfg's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Ohizumi Mfg's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ohizumi Mfg's earnings are expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
Ohizumi Mfg's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Ohizumi Mfg's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Hidetsune Goto has been the President of Ohizumi Mfg. Co., Ltd. since June 8, 2017. Mr. Goto has been a Partner of Integral Corporation since January 2017. Mr. Goto joined Integral Corporation on June 2008. Since January 2008, Mr. Goto is a part-time Instructor of the strategic reorganization class of the M.B.A. program of Globis Business School. Before joining Integral Corporation, he worked for Paris Miki Inc. in 2007 as an Operating Officer in the Strategic Department. Previously, Mr. Goto began his career at Procter & Gamble Far East Inc. in 1994 as a Brand Manager in the Marketing Department, where he drove business double by leading innovative marketing program such as value added product introduction and third party endorsement marketing plan in the detergent category. In 2001, at Boston Consulting Group inc., he worked for many project themes such as sales strategy development with support for its execution, new business development and post merger integration at consumer goods, pharmaceutical and IT sectors. In 2003, at Tohato Inc., Mr. Goto was an Operating Officer in the Strategic Planning Department where he planned the three years turnaround program and developed management infrastructure of the company. He became a Manufacturing Director where he implemented turnaround measures at the plant. Mr. Goto was also the Vice President and Chief Operating Officer from 2005, where he led the marketing, sales and manufacturing divisions and subsequently led the successful turnaround of the company. He served as the Chairman of Ohizumi Mfg. Co., Ltd. since March 9, 2017 until June 8, 2017. He has been Director of Ohizumi Mfg. Co., Ltd. since March 9, 2017. He has been a Director of Integral Corporation since January 2017. He holds a B.A. in Law degree from Hitotsubashi University.
Insufficient data for Hidetsune to compare compensation growth.
Insufficient data for Hidetsune to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Ohizumi Mfg management team is about average.
Senior Managing Director
Managing Director and Director
Vice President and Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Ohizumi Mfg board of directors is about average.
Ohizumi Mfg. Co., Ltd. manufactures and sells electronics parts and electric equipment/devices primarily in Japan. It offers NTC thermistors, such as thermistors for temperature sensing or temperature compensation, temperature sensors for automobile engines, sensors for car air conditioners, and temperature sensors for room air conditioners, as well as for residential installations and home electric appliances. The company also provides PTC thermistors for over-current protection, demagnetization, heaters, temperature sensing/compensation, and other applications; and metal oxide non-linear resistor varistors for the protection of semiconductors from over-voltage, lighting surge, on-off surge of relays, automotive electronic equipment, etc. In addition, it offers thermistor assemblies for automotive industries, household and housing applications, and thermistor assembly and other applications. The company was formerly known as Ohizumi Aircraft Equipment Manufacturing Co., Ltd. and changed its name to Ohizumi Mfg. Co., Ltd. in 1945. Ohizumi Mfg. Co., Ltd. was founded in 1939 and is headquartered in Sayama, Japan.
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