DB:K22

Stock Analysis Report

Executive Summary

Keio Corporation engages in the transportation, real estate, merchandise sales, and other businesses in Japan.


Snowflake Analysis

Solid track record with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: K22 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

K22

9.8%

DE Transportation

7.1%

DE Market


1 Year Return

-6.8%

K22

-39.2%

DE Transportation

-17.5%

DE Market

Return vs Industry: K22 exceeded the German Transportation industry which returned -39.2% over the past year.

Return vs Market: K22 exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

K22IndustryMarket
7 Day-1.9%9.8%7.1%
30 Day20.5%-34.1%-20.0%
90 Day-2.8%-40.8%-26.1%
1 Year-6.5%-6.8%-36.3%-39.2%-15.0%-17.5%
3 Year50.2%47.0%-28.5%-36.6%-18.8%-25.8%
5 Year46.2%40.3%-14.9%-29.2%-17.9%-29.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: K22 (€53) is trading above our estimate of fair value (€6.02)

Significantly Below Fair Value: K22 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: K22 is poor value based on its PE Ratio (28.1x) compared to the Transportation industry average (8.4x).

PE vs Market: K22 is poor value based on its PE Ratio (28.1x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: K22 is poor value based on its PEG Ratio (8.6x)


Price to Book Ratio

PB vs Industry: K22 is overvalued based on its PB Ratio (2x) compared to the XE Transportation industry average (1.2x).


Next Steps

Future Growth

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

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K22's forecast earnings growth (3.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: K22's earnings (3.3% per year) are forecast to grow slower than the German market (14.2% per year).

High Growth Earnings: K22's earnings are forecast to grow, but not significantly.

Revenue vs Market: K22's revenue (1.4% per year) is forecast to grow slower than the German market (4.2% per year).

High Growth Revenue: K22's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: K22's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Keio performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K22 has high quality earnings.

Growing Profit Margin: K22's current net profit margins (6.4%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: K22's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: K22's earnings growth over the past year (11.7%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: K22 earnings growth over the past year (11.7%) exceeded the Transportation industry 0.7%.


Return on Equity

High ROE: K22's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Keio's financial position?


Financial Position Analysis

Short Term Liabilities: K22's short term assets (¥133.9B) do not cover its short term liabilities (¥188.9B).

Long Term Liabilities: K22's short term assets (¥133.9B) do not cover its long term liabilities (¥299.8B).


Debt to Equity History and Analysis

Debt Level: K22's debt to equity ratio (82.4%) is considered high.

Reducing Debt: K22's debt to equity ratio has reduced from 103.8% to 82.4% over the past 5 years.

Debt Coverage: K22's debt is not well covered by operating cash flow (17%).

Interest Coverage: K22's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet

Inventory Level: K22 has a high level of physical assets or inventory.

Debt Coverage by Assets: K22's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

0.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: K22's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: K22's dividend (0.84%) is low compared to the top 25% of dividend payers in the German market (4.98%).


Stability and Growth of Payments

Stable Dividend: K22 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: K22 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: K22 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of K22's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Yasushi Komura (61yo)

3.67s

Tenure

Yasushi Komura has been the President at Keio Corporation since July 5, 2016 and served as its Executive Vice President and General Manager of Corporate Planning Division since June 2015 until July 5, 2016 ...


Leadership Team

NamePositionTenureCompensationOwnership
Yasushi Komura
President & Representative Director3.67yrsno data0.015% ¥999.8k
Akinobu Kawase
Managing Director & Director7.75yrsno data0.0033% ¥217.6k
Kazunori Nakaoka
MD, GM of Strategy Promotion Division6.75yrsno datano data
Shunji Ito
MD & Director4.75yrsno data0.0037% ¥244.8k
Yoshitaka Minami
MD & Director3.67yrsno data0.0036% ¥238.8k
Yotaro Koshimizu
Manager of Group Business Department - Overall Management Division & Director3.67yrsno data0.0040% ¥266.0k
Kazunari Nakajima
Manager of Hotel Strategy Department - Strategy Promotion Division & Director3.67yrsno data0.0020% ¥130.7k

3.7yrs

Average Tenure

Experienced Management: K22's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yasushi Komura
President & Representative Director3.67yrsno data0.015% ¥999.8k
Akinobu Kawase
Managing Director & Director7.75yrsno data0.0033% ¥217.6k
Kazunori Nakaoka
MD, GM of Strategy Promotion Division6.75yrsno datano data
Shunji Ito
MD & Director4.75yrsno data0.0037% ¥244.8k
Yoshitaka Minami
MD & Director3.67yrsno data0.0036% ¥238.8k
Yotaro Koshimizu
Manager of Group Business Department - Overall Management Division & Director3.67yrsno data0.0040% ¥266.0k
Kazunari Nakajima
Manager of Hotel Strategy Department - Strategy Promotion Division & Director3.67yrsno data0.0020% ¥130.7k
Tadashi Nagata
Chairman4.75yrsno data0.025% ¥1.6m
Ichiro Komada
Director9.75yrsno data0.0066% ¥439.8k
Mamoru Yamamoto
Director9.75yrsno data0.0099% ¥657.4k

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: K22's board of directors are considered experienced (5.8 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

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


Key Information

  • Name: Keio Corporation
  • Ticker: K22
  • Exchange: DB
  • Founded: 1948
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: JP¥794.884b
  • Listing Market Cap: JP¥6.634b
  • Shares outstanding: 122.10m
  • Website: https://www.keio.co.jp

Number of Employees


Location

  • Keio Corporation
  • 1-9-1 Sekido
  • Tama-shi
  • Tokyo
  • 206-8502
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9008TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
KTER.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
K22DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Keio Corporation engages in the transportation, real estate, merchandise sales, and other businesses in Japan. Keio Corporation was founded in 1948 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 Analysis2020/03/28 22:19
End of Day Share Price2020/03/27 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.