DB:OSA

Stock Analysis Report

Executive Summary

Osaka Gas Co., Ltd. supplies natural gas to residential, commercial, and industrial customers.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.5%

OSA

-6.2%

DE Gas Utilities

-5.7%

DE Market


1 Year Return

-15.6%

OSA

0.8%

DE Gas Utilities

6.1%

DE Market

Return vs Industry: OSA underperformed the German Gas Utilities industry which returned 0.8% over the past year.

Return vs Market: OSA underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

OSAIndustryMarket
7 Day-4.5%-6.2%-5.7%
30 Day-5.7%-2.9%-5.7%
90 Day-11.2%0.7%-3.6%
1 Year-13.7%-15.6%5.6%0.8%9.3%6.1%
3 Year-10.1%-16.2%41.8%22.7%8.9%-0.7%
5 Year-7.8%-17.8%46.7%9.7%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

12.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OSA (€15) is trading above our estimate of fair value (€8.14)

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


Price To Earnings Ratio

PE vs Industry: OSA is good value based on its PE Ratio (12.1x) compared to the Gas Utilities industry average (16.5x).

PE vs Market: OSA is good value based on its PE Ratio (12.1x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: OSA is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: OSA is good value based on its PB Ratio (0.8x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

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

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSA's forecast earnings growth (2.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: OSA's earnings (2.1% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: OSA's revenue (0.8% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: OSA's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OSA's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Osaka Gas performed over the past 5 years?

-18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSA has high quality earnings.

Growing Profit Margin: OSA's current net profit margins (4.5%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: OSA's earnings have declined by -18.8% per year over the past 5 years.

Accelerating Growth: OSA's earnings growth over the past year (461.1%) exceeds its 5-year average (-18.8% per year).

Earnings vs Industry: OSA earnings growth over the past year (461.1%) exceeded the Gas Utilities industry 10.6%.


Return on Equity

High ROE: OSA's Return on Equity (6.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Osaka Gas's financial position?


Financial Position Analysis

Short Term Liabilities: OSA's short term assets (¥561.2B) exceed its short term liabilities (¥283.2B).

Long Term Liabilities: OSA's short term assets (¥561.2B) do not cover its long term liabilities (¥819.4B).


Debt to Equity History and Analysis

Debt Level: OSA's debt to equity ratio (65.5%) is considered high.

Reducing Debt: OSA's debt to equity ratio has increased from 64.4% to 65.5% over the past 5 years.

Debt Coverage: OSA's debt is well covered by operating cash flow (23.6%).

Interest Coverage: OSA's interest payments on its debt are well covered by EBIT (30.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: OSA's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

2.71%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.8%industryaverage5.2%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: OSA's dividend (2.71%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: OSA's dividend (2.71%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.9%), OSA'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?

3.8yrs

Average management tenure


CEO

Takehiro Honjo (65yo)

4.8yrs

Tenure

0

Mr. Honjo Takehiro has been the President of Osaka Gas Co., Ltd. since April 1, 2015. Mr. Takehiro had been an Executive Vice-President of at Osaka Gas Co., Ltd., April 2013. He served as Senior Executive ...


Leadership Team

NamePositionTenureCompensationOwnership
Takehiro Honjo
President & Representative Director4.8yrsno data0.0092% ¥590.7k
Masataka Fujiwara
Executive VP & Representative Director3.6yrsno data0.0037% ¥235.3k
Tadashi Miyagawa
Executive VP & Representative Director3.6yrsno data0.0015% ¥95.3k
Takayuki Tasaka
Senior Executive Officer & Director1.7yrsno data0.0026% ¥163.0k
Takeshi Matsui
Executive VP & Representative Director0yrsno data0.0028% ¥181.6k
Hisaichi Yoneyama
Senior Executive Officer & Director1.7yrsno data0.0022% ¥140.7k
Kei Takeuchi
Senior Executive Officer & Director0.7yrsno data0.0025% ¥157.9k
Fumitoshi Takeguchi
Senior Executive Officer & Director1.7yrsno data0.0033% ¥209.1k
Shigeru Chikamoto
Senior Executive Officer & Director1.7yrsno data0.0018% ¥111.9k
Minoru Murata
Executive Officers1.1yrsno datano data

3.8yrs

Average Tenure

Experienced Management: OSA's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Takehiro Honjo
President & Representative Director4.8yrsno data0.0092% ¥590.7k
Masataka Fujiwara
Executive VP & Representative Director3.6yrsno data0.0037% ¥235.3k
Tadashi Miyagawa
Executive VP & Representative Director3.6yrsno data0.0015% ¥95.3k
Takayuki Tasaka
Senior Executive Officer & Director1.7yrsno data0.0026% ¥163.0k
Takeshi Matsui
Executive VP & Representative Director0yrsno data0.0028% ¥181.6k
Hisaichi Yoneyama
Senior Executive Officer & Director1.7yrsno data0.0022% ¥140.7k
Kei Takeuchi
Senior Executive Officer & Director0.7yrsno data0.0025% ¥157.9k
Fumitoshi Takeguchi
Senior Executive Officer & Director1.7yrsno data0.0033% ¥209.1k
Shigeru Chikamoto
Senior Executive Officer & Director1.7yrsno data0.0018% ¥111.9k
Hiroshi Ozaki
Chairman4.8yrsno data0.013% ¥852.2k

1.7yrs

Average Tenure

Experienced Board: OSA's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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

Osaka Gas Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Osaka Gas Co., Ltd.
  • Ticker: OSA
  • Exchange: DB
  • Founded: 1897
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: JP¥765.882b
  • Listing Market Cap: JP¥6.393b
  • Shares outstanding: 415.79m
  • Website: https://www.osakagas.co.jp

Number of Employees


Location

  • Osaka Gas Co., Ltd.
  • 4-1-2, Hiranomachi
  • Chuo-ku
  • Osaka
  • 541-0046
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OSGS.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
9532TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
OSADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
OSGS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Osaka Gas Co., Ltd. supplies natural gas to residential, commercial, and industrial customers. It operates through four segments: Gas; LPG, Electricity and Other Energies; International Energies; and Life & Business Solutions. The Gas segment engages in maintenance checks on gas equipment and appliances, and checks on gas meters, as well as collection of gas bills and others; sale of gas appliances, home security systems, and housing equipment and appliances; provision of security and disaster protection services; gas piping works; and construction and sale of energy equipment, heating system supplies, etc. This segment is also involved in the contracting and staffing of call center operations; and provision of various research and consulting services. The LPG, Electricity and Other Energies segment sells LPG, liquefied nitrogen, liquefied oxygen, liquefied argon, and other products; and supplies electric power. It generates and sells electricity from natural gas-fired thermal power plants, as well as wind and solar resources. The International Energies segment engages in leasing LNG vessels; the development and investment of petroleum and natural gas; investment relating to energy supply business; and procurement and sale of LNG. The Life & Business Solutions segment manufactures and sells fine materials, carbon material products, and others; develops, leases, manages, and sells real estate properties; develops software products and provides computer-based data processing services; offers engineering services; and manufactures and sells activated carbon. This segment is also involved in the provision of leasing, credit, and insurance agency services; and management and contract operation of sports facilities. The company operates in Japan and internationally. Osaka Gas Co., Ltd. was founded in 1897 and is headquartered in Osaka, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:18
End of Day Share Price2020/02/25 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.