DB:FVM

Stock Analysis Report

Executive Summary

Forval Telecom, Inc. provides various telecommunications carrier services in Japan.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.9%

FVM

-1.3%

DE Telecom

0.03%

DE Market


1 Year Return

13.0%

FVM

-3.6%

DE Telecom

9.9%

DE Market

Return vs Industry: FVM exceeded the German Telecom industry which returned -3.6% over the past year.

Return vs Market: FVM exceeded the German Market which returned 9.9% over the past year.


Shareholder returns

FVMIndustryMarket
7 Day4.9%-1.3%0.03%
30 Day6.3%-4.9%4.6%
90 Day5.2%3.4%12.1%
1 Year18.2%13.0%1.1%-3.6%13.4%9.9%
3 Year28.5%13.8%14.0%0.08%25.6%14.6%
5 Year68.2%37.5%27.9%4.9%36.9%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FVM (€3.4) is trading above our estimate of fair value (€2.92)

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


Price To Earnings Ratio

PE vs Industry: FVM is good value based on its PE Ratio (10.5x) compared to the Telecom industry average (15.1x).

PE vs Market: FVM is good value based on its PE Ratio (10.5x) compared to the German market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FVM is overvalued based on its PB Ratio (2.3x) compared to the DE Telecom industry average (1.3x).


Next Steps

Future Growth

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

-10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FVM's earnings are forecast to decline over the next 3 years (-10% per year).

Earnings vs Market: FVM's earnings are forecast to decline over the next 3 years (-10% per year).

High Growth Earnings: FVM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if FVM's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if FVM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FVM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Forval Telecom performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FVM has a high level of non-cash earnings.

Growing Profit Margin: FVM's current net profit margins (3.3%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: FVM's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: FVM's earnings growth over the past year (16.8%) exceeds its 5-year average (14.4% per year).

Earnings vs Industry: FVM earnings growth over the past year (16.8%) exceeded the Telecom industry -27.1%.


Return on Equity

High ROE: Whilst FVM's Return on Equity (22.08%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Forval Telecom's financial position?


Financial Position Analysis

Short Term Liabilities: FVM's short term assets (¥8.6B) do not cover its short term liabilities (¥9.7B)

Long Term Liabilities: FVM's short term assets (¥8.6B) exceeds its long term liabilities (346.0M)


Debt to Equity History and Analysis

Debt Level: FVM's debt to equity ratio (149%) is considered high.

Reducing Debt: FVM's debt to equity ratio has increased from 16.6% to 149% over the past 5 years.

Debt Coverage: FVM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: FVM's interest payments on its debt are well covered by EBIT (35.7x coverage).


Balance Sheet

Inventory Level: FVM has a low level of unsold assets or inventory.

Debt Coverage by Assets: FVM's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

4.10%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.1%marketbottom25%1.3%markettop25%3.7%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: FVM's dividend (4.1%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: FVM's dividend (4.1%) is in the top 25% of dividend payers in the German market (3.68%)


Stability and Growth of Payments

Stable Dividend: FVM's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.3%), FVM'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 Forval Telecom's salary, the management and board of directors tenure and is there insider trading?

12.6yrs

Average management tenure


CEO

Tsuyoshi Tanii (54yo)

12.6yrs

Tenure

0

Mr. Tsuyoshi Tanii has been the President of Forval Telecom, Inc. since April 2007. Mr. Tanii has been the President of Tact System Co., Ltd. since April 2008. He has been the President of Try-X Corporatio ...


Management Age and Tenure

12.6yrs

Average Tenure

57yo

Average Age

Experienced Management: FVM's management team is seasoned and experienced (12.6 years average tenure).


Board Age and Tenure

12.5yrs

Average Tenure

59yo

Average Age

Experienced Board: FVM's board of directors are seasoned and experienced ( 12.5 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

  • Tsuyoshi Tanii (54yo)

    President and Representative Director

    • Tenure: 12.6yrs
  • Tadayuki Yamamoto (57yo)

    General Manager of Corporate Management Division and Director

    • Tenure: 13.4yrs
  • Kiyoharu Kajino (59yo)

    General Manager of Business Division and Director

    • Tenure: 17.8yrs
  • Hiroshitake Kobayashi

    Director

    • Tenure: 0.4yrs
  • Yasunori Umebayashi

    Executive Officer

    • Tenure: 0yrs

Board Members

  • Tsuyoshi Tanii (54yo)

    President and Representative Director

    • Tenure: 12.6yrs
  • Koji Kato (60yo)

    Director

    • Tenure: 12.4yrs
  • Tadayuki Yamamoto (57yo)

    General Manager of Corporate Management Division and Director

    • Tenure: 13.4yrs
  • Yoshiyuki Wada (68yo)

    External Director

    • Tenure: 0yrs
  • Kiyoharu Kajino (59yo)

    General Manager of Business Division and Director

    • Tenure: 17.8yrs
  • Tatsuya Yuki (55yo)

    Director

    • Tenure: 6.4yrs
  • Isamu Hashimoto (74yo)

    External Director

    • Tenure: 0yrs
  • Hiroshitake Kobayashi

    Director

    • Tenure: 0.4yrs

Company Information

Forval Telecom, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Forval Telecom, Inc.
  • Ticker: FVM
  • Exchange: DB
  • Founded: 1995
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥6.928b
  • Listing Market Cap: JP¥57.619m
  • Shares outstanding: 16.69m
  • Website: https://www.forvaltel.co.jp

Number of Employees


Location

  • Forval Telecom, Inc.
  • HitotsubashiSI Building
  • 2nd Floor
  • Tokyo
  • 101-0054
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9445TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYNov 2000
FVMDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2000

Biography

Forval Telecom, Inc. provides various telecommunications carrier services in Japan. It is also involved in the security certification acquisition consulting business. The company was founded in 1995 and is ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 20:57
End of Day Share Price2019/11/15 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.