DB:CTZ

Stock Analysis Report

Citizen Watch

Executive Summary

Citizen Watch Co., Ltd. manufactures and sells watches and their components worldwide.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.0%

CTZ

-8.8%

DE Electronic

-9.1%

DE Market


1 Year Return

-26.2%

CTZ

-5.2%

DE Electronic

2.9%

DE Market

Return vs Industry: CTZ underperformed the German Electronic industry which returned -5.2% over the past year.

Return vs Market: CTZ underperformed the German Market which returned 2.9% over the past year.


Shareholder returns

CTZIndustryMarket
7 Day-10.0%-8.8%-9.1%
30 Day-18.6%2.0%-7.2%
90 Day-26.8%-0.5%-6.5%
1 Year-23.3%-26.2%-3.2%-5.2%6.1%2.9%
3 Year-35.5%-41.3%31.2%27.0%3.5%-5.6%
5 Year-38.3%-46.5%94.3%80.2%8.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTZ (€3.72) is trading below our estimate of fair value (€4.66)

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


Price To Earnings Ratio

PE vs Industry: CTZ is good value based on its PE Ratio (23.4x) compared to the Electronic industry average (24.9x).

PE vs Market: CTZ is poor value based on its PE Ratio (23.4x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: CTZ is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CTZ is good value based on its PB Ratio (0.5x) compared to the DE Electronic industry average (1.7x).


Next Steps

Future Growth

How is Citizen Watch forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTZ's forecast earnings growth (22.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: CTZ's earnings (22.2% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTZ's revenue (1.2% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: CTZ's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTZ's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Citizen Watch performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTZ has a large one-off loss of ¥6.1B impacting its December 31 2019 financial results.

Growing Profit Margin: CTZ's current net profit margins (2%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: CTZ's earnings have declined by -7% per year over the past 5 years.

Accelerating Growth: CTZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTZ had negative earnings growth (-66.1%) over the past year, making it difficult to compare to the Electronic industry average (-3.9%).


Return on Equity

High ROE: CTZ's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Citizen Watch's financial position?


Financial Position Analysis

Short Term Liabilities: CTZ's short term assets (¥248.2B) exceed its short term liabilities (¥75.8B).

Long Term Liabilities: CTZ's short term assets (¥248.2B) exceed its long term liabilities (¥66.3B).


Debt to Equity History and Analysis

Debt Level: CTZ's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: CTZ's debt to equity ratio has reduced from 31.7% to 20% over the past 5 years.

Debt Coverage: CTZ's debt is well covered by operating cash flow (36.4%).

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


Balance Sheet

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

Debt Coverage by Assets: CTZ's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

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

5.62%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Citizen Watch before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.6%marketbottom25%1.5%markettop25%3.9%industryaverage1.4%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: CTZ's dividend (5.38%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: CTZ's dividend (5.38%) is in the top 25% of dividend payers in the German market (3.92%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (115.6%), CTZ's dividend payments are not 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?

3.8yrs

Average management tenure


CEO

Citizen Watch has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Toshihiko Sato
CEO, President & Director1.1yrsno data0.0020% ¥22.2k
Carl Mielke
Senior Vice President of Sales - US10.3yrsno datano data
Norio Takeuchi
MD, Senior GM of Watch Business Division & Director0yrsno data0.0025% ¥28.3k
Toshiyuki Furukawa
GM of Corporate Planning Division & Director3.7yrsno datano data
Shinji Shirai
Senior GM of Manufacturing Technology Division & Director2.6yrsno data0.0014% ¥15.5k
Yoshitaka Oji
Senior GM of Product Development & Watch Development Division and R&D Center and Director2.6yrsno data0.0015% ¥16.5k
Yoshiaki Miyamoto
GM of General Affairs Division & Director1.7yrsno data0.0011% ¥12.9k

3.8yrs

Average Tenure

60yo

Average Age

Experienced Management: CTZ's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toshihiko Sato
CEO, President & Director1.1yrsno data0.0020% ¥22.2k
Norio Takeuchi
MD, Senior GM of Watch Business Division & Director0yrsno data0.0025% ¥28.3k
Toshiyuki Furukawa
GM of Corporate Planning Division & Director3.7yrsno datano data
Shinji Shirai
Senior GM of Manufacturing Technology Division & Director2.6yrsno data0.0014% ¥15.5k
Yoshitaka Oji
Senior GM of Product Development & Watch Development Division and R&D Center and Director2.6yrsno data0.0015% ¥16.5k
Yoshiaki Miyamoto
GM of General Affairs Division & Director1.7yrsno data0.0011% ¥12.9k
Keiichi Nakajima
Director6.7yrsno data0.0055% ¥62.0k
Fumiaki Terasaka
Outside Director2.7yrsno data0.00045% ¥5.0k
Toshio Tokura
Chairman1.1yrsno data0.0058% ¥64.9k
Toshiko Kuboki
Outside Director1.1yrsno data0.0016% ¥17.9k

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: CTZ's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Citizen Watch Co., Ltd.
  • Ticker: CTZ
  • Exchange: DB
  • Founded: 1918
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥133.497b
  • Listing Market Cap: JP¥1.120b
  • Shares outstanding: 312.64m
  • Website: https://www.citizen.co.jp

Number of Employees


Location

  • Citizen Watch Co., Ltd.
  • 6-1-12, Tanashi-cho
  • Nishi-Tokyo
  • Tokyo
  • 188-8511
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7762TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
CTZDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
CHCL.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Citizen Watch Co., Ltd. manufactures and sells watches and their components worldwide. It operates through five segments: Watches, Machine Tools, Devices and Components, Electronic Products, and Other Products. The company offers watches and system clocks; CNC automatic lathes; devices and components, including automotive components, compact switches, chip LEDs, LED lighting products, crystal devices, and ferroelectric LCDs; electronic products comprising printers, calculators, and electronic thermometers and blood pressure monitors; and jewelry products. It also offers leisure services. The company was formerly known as Citizen Holdings Co., Ltd., and changed its name to Citizen Watch Co., Ltd. in October 2016. Citizen Watch Co., Ltd. was founded in 1918 and is headquartered in Nishi-Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 22:13
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
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.