Nissin Foods (SEHK:1475) - Share price, News & Analysis

1475 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

1475 Stock Overview

Nissin Foods Company Limited produces and sells instant noodles in Hong Kong, the Peoples Republic of China, Canada, Australia, the United States, Taiwan, Macau, and internationally.

Rewards

Trading at 58.2% below our estimate of its fair value

Earnings are forecast to grow 12.27% per year

Earnings have grown 16.9% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Nissin Foods Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nissin Foods
Historical stock prices
Current Share Price	HK$4.89
52 Week High	HK$6.55
52 Week Low	HK$4.70
Beta	0.17
1 Month Change	-11.73%
3 Month Change	-17.82%
1 Year Change	-22.01%
3 Year Change	-0.41%
5 Year Change	n/a
Change since IPO	45.10%

Recent News & Updates

May 11

Nissin Foods' (HKG:1475) Shareholders Will Receive A Bigger Dividend Than Last Year

Nissin Foods Company Limited's ( HKG:1475 ) dividend will be increasing to HK$0.17 on 29th of June. Based on the...

Apr 27

Nissin Foods (HKG:1475) Is Increasing Its Dividend To HK$0.17

Nissin Foods Company Limited's ( HKG:1475 ) dividend will be increasing to HK$0.17 on 29th of June. This makes the...

Shareholder Returns

	1475	HK Food	HK Market
7D	-2.0%	2.0%	3.4%
1Y	-22.0%	-29.0%	-24.3%

Return vs Industry: 1475 exceeded the Hong Kong Food industry which returned -29.5% over the past year.

Return vs Market: 1475 exceeded the Hong Kong Market which returned -24.5% over the past year.

Price Volatility

Is 1475's price volatile compared to industry and market?
1475 volatility
1475 Average Weekly Movement	4.3%
Food Industry Average Movement	7.2%
Market Average Movement	8.1%
10% most volatile stocks in HK Market	15.0%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 1475 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1475's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	3,590	Kiyotaka Ando	https://www.nissingroup.com.hk

Nissin Foods Company Limited produces and sells instant noodles in Hong Kong, the Peoples Republic of China, Canada, Australia, the United States, Taiwan, Macau, and internationally. It also produces, imports, purchases, sells, and distributes retort and frozen foods, beverages and snacks, processed foods, vegetables, fruit juices, cup noodles, and sauces. In addition, the company manufactures packaging materials of instant noodles products; and provides administrative, human resources, and publicity services.

Nissin Foods Fundamentals Summary

How do Nissin Foods's earnings and revenue compare to its market cap?
1475 fundamental statistics
Market Cap	HK$5.10b
Earnings (TTM)	HK$300.94m
Revenue (TTM)	HK$3.96b

17.0x

P/E Ratio

1.3x

P/S Ratio

Is 1475 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1475 income statement (TTM)
Revenue	HK$3.96b
Cost of Revenue	HK$2.71b
Gross Profit	HK$1.25b
Other Expenses	HK$949.28m
Earnings	HK$300.94m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.29
Gross Margin	31.54%
Net Profit Margin	7.59%
Debt/Equity Ratio	0%

How did 1475 perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

51%

Payout Ratio

Does 1475 pay a reliable dividends?

See 1475 dividend history and benchmarks

When do you need to buy 1475 by to receive an upcoming dividend?
Nissin Foods dividend dates
Ex Dividend Date	Jun 14 2022
Dividend Pay Date	Jun 29 2022
Days until Ex dividend	26 days
Days until Dividend pay date	41 days

Does 1475 pay a reliable dividends?

See 1475 dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 1475 (HK$4.89) is trading below our estimate of fair value (HK$11.71)

Significantly Below Fair Value: 1475 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 1475 is poor value based on its PE Ratio (17x) compared to the Hong Kong Food industry average (10.7x).

PE vs Market: 1475 is poor value based on its PE Ratio (17x) compared to the Hong Kong market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: 1475 is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: 1475 is overvalued based on its PB Ratio (1.3x) compared to the HK Food industry average (0.8x).

Future Growth

How is Nissin Foods forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1475's forecast earnings growth (12.3% per year) is above the savings rate (1.5%).

Earnings vs Market: 1475's earnings (12.3% per year) are forecast to grow slower than the Hong Kong market (15% per year).

High Growth Earnings: 1475's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1475's revenue (9.2% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 1475's revenue (9.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1475's Return on Equity is forecast to be low in 3 years time (9%).

Past Performance

How has Nissin Foods performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1475 has high quality earnings.

Growing Profit Margin: 1475's current net profit margins (7.6%) are lower than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: 1475's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: 1475's earnings growth over the past year (1.6%) is below its 5-year average (16.9% per year).

Earnings vs Industry: 1475 earnings growth over the past year (1.6%) underperformed the Food industry 3.6%.

Return on Equity

High ROE: 1475's Return on Equity (8.1%) is considered low.

Financial Health

How is Nissin Foods's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1475's short term assets (HK$3.1B) exceed its short term liabilities (HK$1.0B).

Long Term Liabilities: 1475's short term assets (HK$3.1B) exceed its long term liabilities (HK$81.9M).

Debt to Equity History and Analysis

Debt Level: 1475 is debt free.

Reducing Debt: 1475 has not had any debt for past 5 years.

Debt Coverage: 1475 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1475 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.98%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 1475's dividend (2.98%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.81%).

High Dividend: 1475's dividend (2.98%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.77%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1475 has been paying a dividend for less than 10 years.

Growing Dividend: 1475's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50.8%), 1475's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (81%), 1475's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Kiyotaka Ando (42 yo)

no data

Tenure

HK$7,053,000

Compensation

Mr. Kiyotaka Ando has been the Chief Representative of China at Nissin Foods Holdings Co.,Ltd. since 2021 and has been Managing Non-executive Officer and Chief Representative of East Asia and joined the or...

CEO Compensation Analysis

Compensation vs Market: Kiyotaka's total compensation ($USD898.50K) is above average for companies of similar size in the Hong Kong market ($USD542.72K).

Compensation vs Earnings: Kiyotaka's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 1475's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: 1475's board of directors are considered experienced (3.8 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31