DB:YMK

Stock Analysis Report

Executive Summary

Azbil Corporation provides automation products and services worldwide.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

YMK

-0.4%

DE Electronic

0.1%

DE Market


1 Year Return

28.3%

YMK

10.9%

DE Electronic

14.1%

DE Market

Return vs Industry: YMK exceeded the German Electronic industry which returned 10.9% over the past year.

Return vs Market: YMK exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

YMKIndustryMarket
7 Day-1.6%-0.4%0.1%
30 Day-2.4%7.3%0.2%
90 Day-7.6%6.3%3.3%
1 Year30.6%28.3%13.4%10.9%17.6%14.1%
3 Year73.2%64.7%47.9%43.0%14.8%4.8%
5 Year132.1%110.9%113.8%98.5%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

22.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: YMK (€24.4) is trading above our estimate of fair value (€18.31)

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


Price To Earnings Ratio

PE vs Industry: YMK is good value based on its PE Ratio (22x) compared to the Electronic industry average (33.9x).

PE vs Market: YMK is poor value based on its PE Ratio (22x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: YMK is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: YMK is overvalued based on its PB Ratio (2.3x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Azbil forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YMK's forecast earnings growth (6.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: YMK's earnings (6.4% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: YMK's revenue (2.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: YMK's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YMK's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Azbil performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YMK has high quality earnings.

Growing Profit Margin: YMK's current net profit margins (7.2%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: YMK's earnings have grown significantly by 22.5% per year over the past 5 years.

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

Earnings vs Industry: YMK had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Electronic industry average (-3.9%).


Return on Equity

High ROE: YMK's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Azbil's financial position?


Financial Position Analysis

Short Term Liabilities: YMK's short term assets (¥190.4B) exceed its short term liabilities (¥71.8B).

Long Term Liabilities: YMK's short term assets (¥190.4B) exceed its long term liabilities (¥7.3B).


Debt to Equity History and Analysis

Debt Level: YMK's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: YMK's debt to equity ratio has reduced from 11.8% to 4.6% over the past 5 years.

Debt Coverage: YMK's debt is well covered by operating cash flow (255.6%).

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


Balance Sheet

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

Debt Coverage by Assets: YMK's debt is covered by short term assets (assets are 22.9x debt).


Next Steps

Dividend

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

1.71%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 20 2020Ex Dividend DateMar 30 2020Dividend Pay DateJun 26 202088 days from Ex DividendBuy in the next 39 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: YMK's dividend (1.71%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: YMK's dividend (1.71%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), YMK'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?

6.8yrs

Average management tenure


CEO

Hirozumi Sone (64yo)

7.8yrs

Tenure

Mr. Hirozumi Sone has been Group Chief Executive Officer and President of Azbil Corporation (alternate name: Yamatake Corp.) since April 1, 2012. Mr. Sone served as Managing Executive Officer of Azbil Corp ...


Leadership Team

NamePositionTenureCompensationOwnership
Tadayuki Sasaki
Chairman1.7yrsno data0.027% ¥923.9k
Hirozumi Sone
Group CEO7.8yrsno data0.022% ¥753.6k
Junya Nishimoto
Managing Executive Officer & Head of Technology Development Headquarters1.1yrsno datano data
Masato Iwasaki
Managing Executive Officer & Executive Director7.7yrsno data0.016% ¥534.9k
Hiroshi Arai
Managing Executive Officer & Head of IT Solutions Headquarters7.8yrsno datano data
Yoshifumi Suzuki
Executive Officer1.1yrsno datano data
Hideaki Ishii
Executive Officer2.8yrsno datano data
Yoshimitsu Hojo
Managing Executive Officer5.7yrsno data0.010% ¥340.5k
Kazuyasu Hamada
Managing Executive Officer1.7yrsno data0.0036% ¥121.4k
Hiroshi Shimizu
Executive Officer and GM of Advanced Solutions Department0yrsno datano data

6.8yrs

Average Tenure

Experienced Management: YMK's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tadayuki Sasaki
Chairman1.7yrsno data0.027% ¥923.9k
Hirozumi Sone
Group CEO7.8yrsno data0.022% ¥753.6k
Masato Iwasaki
Managing Executive Officer & Executive Director7.7yrsno data0.016% ¥534.9k
Yoshimitsu Hojo
Managing Executive Officer5.7yrsno data0.010% ¥340.5k
Kazuyasu Hamada
Managing Executive Officer1.7yrsno data0.0036% ¥121.4k
Takayuki Yokota
Managing Executive Officer1.7yrsno data0.0079% ¥267.6k
Takeshi Ito
Outside Director5.7yrsno data0.0072% ¥243.2k
Katsuhiko Tanabe
Outside Director9.7yrsno data0.0022% ¥72.9k
Eugene H. Lee
Outside Director12.7yrsno datano data
Mitsuhiro Nagahama
Outside Director0.7yrsno datano data

5.7yrs

Average Tenure

65yo

Average Age

Experienced Board: YMK's board of directors are considered experienced (5.7 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

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


Key Information

  • Name: Azbil Corporation
  • Ticker: YMK
  • Exchange: DB
  • Founded: 1906
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥406.779b
  • Listing Market Cap: JP¥3.392b
  • Shares outstanding: 139.50m
  • Website: https://www.azbil.com

Number of Employees


Location

  • Azbil Corporation
  • Tokyo Building
  • 19th Floor
  • Tokyo
  • 100-6419
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6845TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
YMKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Azbil Corporation provides automation products and services worldwide. It operates in three segments: Building Automation Business, Advanced Automation Business, and Life Automation Business. The Building Automation Business segment supplies commercial buildings and production facilities with automatic heating ventilation; and air conditioning control and security systems that include products, engineering, and related services. The Advance Automation Business segment supplies automation control systems, switches and sensors, and engineering and maintenance services to industrial plants and factories. The Life Automation Business segment supplies meters for lifelines, residential central air-conditioning systems, and life sciences research systems; and manufactures and sells manufacturing equipment and environmental equipment for the pharmaceutical and medical fields, as well as offers related services. The company was formerly known as Yamatake Corporation and changed its name to Azbil Corporation in April 2012. Azbil Corporation was founded in 1906 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 Analysis2020/02/19 21:18
End of Day Share Price2020/02/19 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.