DB:EZ3

Stock Analysis Report

Executive Summary

Excel Co.,Ltd. operates as an electronic devices trading company in Japan.

Rewards

Trading at 85.3% below its fair value

Earnings grew by 173.5% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EZ3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

EZ3

1.9%

DE Electronic

0.06%

DE Market


1 Year Return

-22.0%

EZ3

8.5%

DE Electronic

14.8%

DE Market

Return vs Industry: EZ3 underperformed the German Electronic industry which returned 9.5% over the past year.

Return vs Market: EZ3 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

EZ3IndustryMarket
7 Day0%1.9%0.06%
30 Day0%0.2%1.8%
90 Day30.9%7.5%7.1%
1 Year-20.4%-22.0%11.0%8.5%18.4%14.8%
3 Year12.3%4.9%54.2%49.4%17.4%7.0%
5 Year52.3%35.1%119.5%103.2%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EZ3 (€12.7) is trading below our estimate of fair value (€86.12)

Significantly Below Fair Value: EZ3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EZ3 is good value based on its PE Ratio (12.8x) compared to the Electronic industry average (27.1x).

PE vs Market: EZ3 is good value based on its PE Ratio (12.8x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EZ3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EZ3 is good value based on its PB Ratio (0.6x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

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

17.3%

Forecasted Tech 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 ExcelLtd 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 ExcelLtd performed over the past 5 years?

49.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EZ3 has a large one-off gain of ¥982.0M impacting its September 30 2019 financial results.

Growing Profit Margin: EZ3's current net profit margins (1.7%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: EZ3 has become profitable over the past 5 years, growing earnings by 49.2% per year.

Accelerating Growth: EZ3's earnings growth over the past year (173.5%) exceeds its 5-year average (49.2% per year).

Earnings vs Industry: EZ3 earnings growth over the past year (173.5%) exceeded the Electronic industry 3.1%.


Return on Equity

High ROE: EZ3's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ExcelLtd's financial position?


Financial Position Analysis

Short Term Liabilities: EZ3's short term assets (¥31.2B) exceed its short term liabilities (¥12.3B).

Long Term Liabilities: EZ3's short term assets (¥31.2B) exceed its long term liabilities (¥746.0M).


Debt to Equity History and Analysis

Debt Level: EZ3's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: EZ3's debt to equity ratio has reduced from 48% to 28.6% over the past 5 years.

Debt Coverage: EZ3's debt is well covered by operating cash flow (82.8%).

Interest Coverage: EZ3's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet

Inventory Level: EZ3 has a high level of physical assets or inventory.

Debt Coverage by Assets: EZ3's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

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

3.52%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.5%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EZ3's dividend (3.52%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: EZ3's dividend (3.52%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: EZ3's dividend payments have been volatile in the past 10 years.

Growing Dividend: EZ3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), EZ3'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 ExcelLtd's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Nobuaki Ohtaki (63yo)

0yrs

Tenure

0

Mr. Nobuaki Ohtaki serves as Chief Executive Officer and President of Excel Co. Ltd. since June 2015 and served as its Managing Director since May 2011. Mr. Ohtaki joined Matsushita Denso K.K. (now Panason ...


Management Age and Tenure

2.6yrs

Average Tenure

63yo

Average Age

Experienced Management: EZ3's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

64yo

Average Age

Experienced Board: EZ3's board of directors are considered experienced (3.6 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

  • Nobuaki Ohtaki (63yo)

    CEO, President & Representative Director

    • Isaku Tanimura (64yo)

      GM of Finance Division

      • Tenure: 6.6yrs
    • Shiro Ogawa (62yo)

      Senior Executive Officer

      • Tenure: 4.6yrs
    • Alex Huang

      Executive Officer and General Manager of Overseas 2nd Sales Division

      • Hideki Sugahara

        Executive Officer

        • Tsutomu Iwata

          Executive Officer

          • Yasuhiro Ohhashi

            Executive Officer

            • Tenure: 1yrs

          Board Members

          • Nobuaki Ohtaki (63yo)

            CEO, President & Representative Director

            • Kazuyuki Togo (62yo)

              Outside Director

              • Tenure: 3.6yrs
            • Isaku Tanimura (64yo)

              GM of Finance Division

              • Tenure: 6.6yrs
            • Masayuki Yoshizawa (67yo)

              Director

              • Tenure: 3.6yrs
            • Shiro Ogawa (62yo)

              Senior Executive Officer

              • Tenure: 4.6yrs
            • Takehiko Omiya (74yo)

              External Director

              • Tenure: 3.6yrs
            • Masahiko Sada (68yo)

              Director

              • Tenure: 2.6yrs
            • Hironaho Fukushima

              Outside Director

              Company Information

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


              Key Information

              • Name: Excel Co.,Ltd.
              • Ticker: EZ3
              • Exchange: DB
              • Founded: 1961
              • Industry: Technology Distributors
              • Sector: Tech
              • Market Cap: JP¥13.805b
              • Listing Market Cap: JP¥112.961m
              • Shares outstanding: 8.67m
              • Website: https://www.excelweb.co.jp

              Number of Employees


              Location

              • Excel Co.,Ltd.
              • 3-12-10, Nishi-Shinbashi
              • Minato-ku
              • Tokyo
              • 105-0003
              • Japan

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              7591TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYSep 1998
              EZ3DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1998

              Biography

              Excel Co.,Ltd. operates as an electronic devices trading company in Japan. The company imports and sells LCD devices, integrated circuits, semiconductor devices, and other electronic components and equipment. It also offers electronics manufacturing services comprising procurement, inventory management, and delivery scheduling acquired through device sales and purchasing services. Excel Co., Ltd. also exports its products. The company was formerly known as OK Denki Co., Ltd. and changed its name to Excel Co.,Ltd. in Apr 1992. Excel Co.,Ltd. was founded in 1961 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 Analysis2020/01/17 21:17
              End of Day Share Price2020/01/17 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.