DB:KYR

Stock Analysis Report

Executive Summary

Kyocera Corporation develops, produces, and distributes ceramic and electronic components, and telecommunications and information equipment worldwide.

Rewards

PE ratio (21.5x) is below the Electronic industry average (33.7x)

Earnings are forecast to grow 11.85% per year

Earnings grew by 76.4% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.5%

KYR

9.4%

DE Electronic

1.7%

DE Market


1 Year Return

27.4%

KYR

13.9%

DE Electronic

15.0%

DE Market

Return vs Industry: KYR exceeded the German Electronic industry which returned 13.9% over the past year.

Return vs Market: KYR exceeded the German Market which returned 15% over the past year.


Shareholder returns

KYRIndustryMarket
7 Day2.5%9.4%1.7%
30 Day-0.8%8.4%0.8%
90 Day6.0%7.4%3.7%
1 Year30.6%27.4%16.4%13.9%18.5%15.0%
3 Year29.7%21.9%55.2%50.0%17.1%6.9%
5 Year58.5%43.3%122.9%106.8%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

21.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KYR (€62) is trading above our estimate of fair value (€55.22)

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


Price To Earnings Ratio

PE vs Industry: KYR is good value based on its PE Ratio (21.5x) compared to the Electronic industry average (33.7x).

PE vs Market: KYR is poor value based on its PE Ratio (21.5x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: KYR is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KYR is good value based on its PB Ratio (1.1x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Kyocera forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KYR's forecast earnings growth (11.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: KYR's earnings (11.9% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: KYR's revenue (4.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: KYR's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KYR's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Kyocera performed over the past 5 years?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KYR has a large one-off gain of ¥68.5B impacting its December 31 2019 financial results.

Growing Profit Margin: KYR's current net profit margins (7.8%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: KYR's earnings have declined by -3.2% per year over the past 5 years.

Accelerating Growth: KYR's earnings growth over the past year (76.4%) exceeds its 5-year average (-3.2% per year).

Earnings vs Industry: KYR earnings growth over the past year (76.4%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: KYR's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kyocera's financial position?


Financial Position Analysis

Short Term Liabilities: KYR's short term assets (¥1,253.9B) exceed its short term liabilities (¥360.3B).

Long Term Liabilities: KYR's short term assets (¥1,253.9B) exceed its long term liabilities (¥354.8B).


Debt to Equity History and Analysis

Debt Level: KYR's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: KYR's debt to equity ratio has reduced from 1.6% to 0.5% over the past 5 years.

Debt Coverage: KYR's debt is well covered by operating cash flow (1499.4%).

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


Balance Sheet

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

Debt Coverage by Assets: KYR's debt is covered by short term assets (assets are 89.2x debt).


Next Steps

Dividend

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

2.15%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.2%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: KYR's dividend (2.15%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: KYR's dividend (2.15%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.5%), KYR'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?

8.8yrs

Average management tenure


CEO

Hideo Tanimoto (59yo)

3yrs

Tenure

JP¥132,000,000

Compensation

Mr. Hideo Tanimoto has been the President of Kyocera Corporation since February 2017 and is its Executive Officer. Mr. Tanimoto served as the General Manager of Corporate Fine Ceramics Group at Kyocera Cor ...


CEO Compensation Analysis

Compensation vs Market: Hideo's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD4.37M).

Compensation vs Earnings: Insufficient data to compare Hideo's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Hideo Tanimoto
President & Representative Director3yrsJP¥132.00m0.0018% ¥411.9k
Kazuo Inamori
Founder & Chairman Emeritus0yrsno data2.82% ¥637.7m
Junichi Jinno
Managing Exec. Officer2.1yrsno data0.00094% ¥212.7k
Koichi Kano
Managing Exec. Officer4.1yrsno data0.0011% ¥255.8k
Takashi Sato
Managing Exec. Officer2.7yrsno data0.0018% ¥411.9k
Shoichi Aoki
Managing Exec. Officer10.7yrsno data0.0031% ¥699.4k
Ken Ishii
Senior Managing Exec. Officer7.7yrsno data0.0033% ¥749.2k
Masaki Iida
Senior Executive Officer & GM of Corporate Purchasing Group0yrsno datano data
Hiroshi Fure
Sr. Managing Exec. Officer6.7yrsno data0.0015% ¥350.8k
Yoji Date
Senior Managing Exec. Officer6.7yrsno data0.0026% ¥593.0k

8.8yrs

Average Tenure

60yo

Average Age

Experienced Management: KYR's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hideo Tanimoto
President & Representative Director3yrsJP¥132.00m0.0018% ¥411.9k
Kazuo Inamori
Founder & Chairman Emeritus0yrsno data2.82% ¥637.7m
Junichi Jinno
Managing Exec. Officer2.1yrsno data0.00094% ¥212.7k
Koichi Kano
Managing Exec. Officer4.1yrsno data0.0011% ¥255.8k
Takashi Sato
Managing Exec. Officer2.7yrsno data0.0018% ¥411.9k
Shoichi Aoki
Managing Exec. Officer10.7yrsno data0.0031% ¥699.4k
Ken Ishii
Senior Managing Exec. Officer7.7yrsno data0.0033% ¥749.2k
Hiroshi Fure
Sr. Managing Exec. Officer6.7yrsno data0.0015% ¥350.8k
Yoji Date
Senior Managing Exec. Officer6.7yrsno data0.0026% ¥593.0k
Goro Yamaguchi
Chairman of the Board2.8yrsJP¥121.00m0.0077% ¥1.8m

4.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: KYR's board of directors are considered experienced (4.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Kyocera Corporation
  • Ticker: KYR
  • Exchange: DB
  • Founded: 1959
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥2.694t
  • Listing Market Cap: JP¥22.633b
  • Shares outstanding: 362.43m
  • Website: https://global.kyocera.com

Number of Employees


Location

  • Kyocera Corporation
  • 6, Takeda Tobadono-cho
  • Fushimi-ku
  • Kyoto
  • 612-8501
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KYOC.YOTCPK (Pink Sheets LLC)ADR-EACH CNV TO 1 ORD NPVUSUSDFeb 1976
KYRADB (Deutsche Boerse AG)ADR-EACH CNV TO 1 ORD NPVDEEURFeb 1976
6971TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1980
KYOC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1980
KYRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

Kyocera Corporation develops, produces, and distributes ceramic and electronic components, and telecommunications and information equipment worldwide. Its Industrial & Automotive Components Group segment offers fine ceramic components, automotive components, liquid crystal displays, and industrial tools to the industrial machinery, automotive, general industrial, and construction markets. The company’s Semiconductor Components Group segment provides inorganic and organic ceramic packages, and multilayer printing wiring boards for electronic components and devices, such as crystal components, SAW devices, and CMOS/CCD sensors for communication infrastructures and automotive-related markets. Its Electronic Devices Group segment offers electronic components and devices comprising capacitors, crystal devices, connectors, power semiconductor devices, etc., as well as printing devices for the information and communications equipment, industrial equipment, and automotive markets. The company’s Communications Group segment provides smartphones, mobile phones, and communication modules for the Internet of Things market; and information systems, telecommunication, and engineering services. Its Document Solutions Group offers printers, multifunctional products, document solutions, and supplies; and enterprise contents management and business process outsourcing services. The company’s Life & Environment Group segment provides solar modules for commercial and residential uses; solar energy products, including storage batteries and energy management systems; medical devices, such as prosthetic joints and dental prosthetics; jewellery; and kitchen accessories, including ceramic knives. It offers its products through sales personnel, sales companies, and third-party distributors. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was founded in 1959 and is headquartered in Kyoto, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:44
End of Day Share Price2020/02/14 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.