DB:9EL

Stock Analysis Report

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Executive Summary

Elecom Co., Ltd. manufactures and sells personal computer and digital device related products worldwide. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 9EL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

9EL

10.3%

DE Tech

-1.8%

DE Market


1 Year Return

14.3%

9EL

66.4%

DE Tech

1.7%

DE Market

Return vs Industry: 9EL underperformed the German Tech industry which returned 51.9% over the past year.

Return vs Market: 9EL exceeded the German Market which returned 2.6% over the past year.


Shareholder returns

9ELIndustryMarket
7 Day-2.0%10.3%-1.8%
30 Day-2.0%23.6%-1.6%
90 Day-10.7%22.8%-1.8%
1 Year16.0%14.3%68.4%66.4%4.9%1.7%
3 Year141.0%128.9%68.1%60.6%2.0%-6.9%
5 Year291.3%255.6%180.4%157.4%24.2%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

21.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 9EL (€38.4) is trading above our estimate of fair value (€25.96)

Significantly Below Fair Value: 9EL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 9EL is poor value based on its PE Ratio (21x) compared to the XE Tech industry average (20.6x).

PE vs Market: 9EL is good value based on its PE Ratio (21x) compared to the German market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: 9EL is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 9EL is overvalued based on its PB Ratio (3.3x) compared to the XE Tech industry average (2x).


Next Steps

Future Growth

How is Elecom forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9EL's forecast earnings growth (7.8% per year) is above the savings rate (0.2%).

Earnings vs Market: 9EL's earnings (7.8% per year) are forecast to grow slower than the German market (26.9% per year).

High Growth Earnings: 9EL's earnings are forecast to grow, but not significantly.

Revenue vs Market: 9EL's revenue (3.7% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: 9EL's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9EL's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Elecom performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9EL has high quality earnings.

Growing Profit Margin: 9EL's current net profit margins (9.8%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: 9EL's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: 9EL's earnings growth over the past year (21.9%) exceeds its 5-year average (15.3% per year).

Earnings vs Industry: 9EL earnings growth over the past year (21.9%) exceeded the Tech industry -8.1%.


Return on Equity

High ROE: 9EL's Return on Equity (15.4%) is considered low.


Next Steps

Financial Health

How is Elecom's financial position?


Financial Position Analysis

Short Term Liabilities: 9EL's short term assets (¥80.7B) exceed its short term liabilities (¥23.8B).

Long Term Liabilities: 9EL's short term assets (¥80.7B) exceed its long term liabilities (¥1.9B).


Debt to Equity History and Analysis

Debt Level: 9EL's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: 9EL's debt to equity ratio has reduced from 12.2% to 0.8% over the past 5 years.

Debt Coverage: 9EL's debt is well covered by operating cash flow (2910.4%).

Interest Coverage: 9EL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Elecom current dividend yield, its reliability and sustainability?

1.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9EL's dividend (1.26%) is higher than the bottom 25% of dividend payers in the German market (1.18%).

High Dividend: 9EL's dividend (1.26%) is low compared to the top 25% of dividend payers in the German market (3.68%).


Stability and Growth of Payments

Stable Dividend: 9EL's dividend payments have been volatile in the past 10 years.

Growing Dividend: 9EL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), 9EL'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

How experienced are the management team and are they aligned to shareholders interests?

9.3yrs

Average management tenure


CEO

Junji Hada (67 yo)

25.92yrs

Tenure

Mr. Junji Hada has been the President and Representative Director of Elecom Co., Ltd. since November 1994 and serves as its Managing Director since May 2020. Mr Hada Established Elecom Co., Ltd. in May 198 ...


Leadership Team

NamePositionTenureCompensationOwnership
Junji Hada
President25.92yrsno data24.72%
¥ 433.0m
Masaki Tanaka
Head of Finance & Planning Office and Director5.33yrsno data0.40%
¥ 6.9m
Yukio Shibata
MD, Head of Sales & Director25.92yrsno data0.69%
¥ 12.1m
Koji Kajiura
MD, Head of Products Development & Director13.33yrsno data0.21%
¥ 3.7m
Teruhiko Nagashiro
MD, Head of Products Procurement & Director8.33yrsno data0.12%
¥ 2.1m

9.3yrs

Average Tenure

59yo

Average Age

Experienced Management: 9EL's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Junji Hada
President25.92yrsno data24.72%
¥ 433.0m
Masaki Tanaka
Head of Finance & Planning Office and Director5.33yrsno data0.40%
¥ 6.9m
Yukio Shibata
MD, Head of Sales & Director25.92yrsno data0.69%
¥ 12.1m
Koji Kajiura
MD, Head of Products Development & Director13.33yrsno data0.21%
¥ 3.7m
Teruhiko Nagashiro
MD, Head of Products Procurement & Director8.33yrsno data0.12%
¥ 2.1m
Kohei Katsukawa
Directorno datano datano data
Akira Tabata
20.33yrsno data0.020%
¥ 350.0k
Toshimitsu Toida
Full Time Auditor11.33yrsno data0.0022%
¥ 38.9k
Hiroyuki Suzuki
Directorno datano datano data
Hirofumi Ikeda
Directorno datano datano data
Yutaka Nishizawa
Director1.75yrsno datano data
Nishizawa Yutaka
Director0.42yrno datano data

11.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 9EL's board of directors are seasoned and experienced ( 11.3 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 been diluted in the past year, with total shares outstanding growing by 5.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Elecom Co., Ltd.
  • Ticker: 9EL
  • Exchange: DB
  • Founded: 1986
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: JP¥218.739b
  • Listing Market Cap: JP¥1.752b
  • Shares outstanding: 45.05m
  • Website: https://www.elecom.co.jp

Number of Employees


Location

  • Elecom Co., Ltd.
  • Midosuji Building
  • 9th Floor
  • Osaka
  • 541-8765
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6750TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYNov 2006
9ELDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006

Biography

Elecom Co., Ltd. manufactures and sells personal computer and digital device related products worldwide. The company offers PC supplies, such as mouse pads; IO device products comprising mice and keyboards ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:41
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.