DB:YKE

Stock Analysis Report

Yokogawa Electric

Executive Summary

Yokogawa Electric Corporation provides industrial automation, and test and measurement solutions in Japan, Asia, Europe, Africa, North America, the Middle East, and internationally.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

YKE

-2.4%

DE Electronic

-0.2%

DE Market


1 Year Return

-5.4%

YKE

8.1%

DE Electronic

13.7%

DE Market

Return vs Industry: YKE underperformed the German Electronic industry which returned 8.7% over the past year.

Return vs Market: YKE underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

YKEIndustryMarket
7 Day-0.6%-2.4%-0.2%
30 Day-4.2%9.1%0.3%
90 Day-1.8%6.8%3.7%
1 Year-3.9%-5.4%10.5%8.1%17.2%13.7%
3 Year13.5%8.5%48.0%43.1%15.4%5.3%
5 Year80.4%66.4%113.5%98.2%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

23.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: YKE (€16) is trading above our estimate of fair value (€14.14)

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


Price To Earnings Ratio

PE vs Industry: YKE is good value based on its PE Ratio (23.7x) compared to the Electronic industry average (33.5x).

PE vs Market: YKE is poor value based on its PE Ratio (23.7x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: YKE is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: YKE is overvalued based on its PB Ratio (1.8x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Yokogawa Electric forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YKE's forecast earnings growth (9.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: YKE's earnings (9.7% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: YKE's revenue (2.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: YKE's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YKE's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Yokogawa Electric performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YKE has high quality earnings.

Growing Profit Margin: YKE's current net profit margins (5.4%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: YKE's earnings have grown by 2.8% per year over the past 5 years.

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

Earnings vs Industry: YKE had negative earnings growth (-31.3%) over the past year, making it difficult to compare to the Electronic industry average (-3.9%).


Return on Equity

High ROE: YKE's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yokogawa Electric's financial position?


Financial Position Analysis

Short Term Liabilities: YKE's short term assets (¥305.7B) exceed its short term liabilities (¥151.1B).

Long Term Liabilities: YKE's short term assets (¥305.7B) exceed its long term liabilities (¥21.2B).


Debt to Equity History and Analysis

Debt Level: YKE's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: YKE's debt to equity ratio has reduced from 36.7% to 10.1% over the past 5 years.

Debt Coverage: YKE's debt is well covered by operating cash flow (69.6%).

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


Balance Sheet

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

Debt Coverage by Assets: YKE's debt is covered by short term assets (assets are 10.1x debt).


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.8%marketbottom25%1.3%markettop25%3.7%industryaverage1.2%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: YKE's dividend (1.75%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: YKE's dividend (1.75%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), YKE'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?

1.8yrs

Average management tenure


CEO

Hitoshi Nara (56yo)

0.8yrs

Tenure

0

Mr. Hitoshi Nara joined Yokogawa Electric Corporation in April 1985. He serves as President since April 2019 at Yokogawa Electric Corporation. Mr. Nara also serves as Chief Executive Officer at Yokogawa El ...


Leadership Team

NamePositionTenureCompensationOwnership
Hitoshi Nara
President0.8yrsno data0.0079% ¥337.2k
Junichi Anabuki
Executive VP5.7yrsno data0.0071% ¥305.0k
Hirohiko Nakatani
Department Manager of Treasury & IR0yrsno datano data
Hajime Watanabe
VP and Head of Audit2.1yrsno datano data
Tsuyoshi Abe
Senior VP & Head of Marketing Headquarters0yrsno datano data
Koji Nakaoka
VP and Head of Global Sales & Industry Marketing Headquarters0yrsno datano data
Mikio Matsui
VP and Head of Human Resources & General Affairs Headquarters0yrsno datano data
Masaharu Yamazaki
Senior VP & Head of Aerospace Products Business Headquarters2.8yrsno datano data
Shigeyoshi Uehara
VP and Head of IA Products & Services Business Headquarters0yrsno datano data
Dai Yu
Head of Digital Enterprise Business Headquarters0.7yrsno datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: YKE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hitoshi Nara
President0.8yrsno data0.0079% ¥337.2k
Junichi Anabuki
Executive VP5.7yrsno data0.0071% ¥305.0k
Dai Yu
Head of Digital Enterprise Business Headquarters0.7yrsno datano data
Noritaka Uji
Outside Director5.7yrsno datano data
Akira Uchida
Outside Director0.7yrsno datano data
Koichi Chujo
Audit & Supervisory Board Member3.7yrsno data0.0075% ¥320.9k
Kouji Maemura
Audit & Supervisory Board Member2.7yrsno datano data
Takashi Nishijima
Chairman of the Board0.8yrsno data0.024% ¥1.0m
Nobuo Seki
Outside Director4.7yrsno data0.00037% ¥15.9k
Shiro Sugata
Outside Director3.7yrsno datano data

3.7yrs

Average Tenure

64yo

Average Age

Experienced Board: YKE's board of directors are considered experienced (3.7 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

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


Key Information

  • Name: Yokogawa Electric Corporation
  • Ticker: YKE
  • Exchange: DB
  • Founded: 1915
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥517.585b
  • Listing Market Cap: JP¥4.284b
  • Shares outstanding: 266.93m
  • Website: https://www.yokogawa.com

Number of Employees


Location

  • Yokogawa Electric Corporation
  • 2-9-32 Nakacho
  • Musashino
  • Tokyo
  • 180-8750
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6841TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
YKEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
YOKE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
YOKE.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2010

Biography

Yokogawa Electric Corporation provides industrial automation, and test and measurement solutions in Japan, Asia, Europe, Africa, North America, the Middle East, and internationally. It operates in three segments: Industrial Automation and Control, Test and Measurement, and Aviation and Other Business. The Industrial Automation and Control segment offers field instruments, such as flow meters, differential/pressure transmitters, and process analyzers; control systems and programmable controllers; and various software products and services. The Test and Measurement segment provides waveform and optical communication measuring instruments, and signal generators; electric voltage, current, and power measuring instruments; LCD drivers; and confocal scanners. The Aviation and Other Business segment offers aviation equipment, such as flat-panel displays, engine meters, and other instruments; marine navigation equipment, such as gyrocompasses and autopilot systems; and meteorological/hydrological monitoring system equipment. The company also engineers, markets, and sells enterprise resource planning solutions to the process and manufacturing industry customers in Southeast Asia. It serves oil and gas, chemicals, electric power, iron and steel, pulp and paper, pharmaceutical, and food industries. The company was formerly known as Yokogawa Electric Works Ltd. and changed its name to Yokogawa Electric Corporation in 1986. Yokogawa Electric Corporation was founded in 1915 and is headquartered in Musashino, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:13
End of Day Share Price2020/02/20 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.