SEHK:1475

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Risks

  • Nissin Foods has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

14.0%

SEHK:1475

5.6%

HK Food

2.2%

HK Market


1 Year Return

91.9%

SEHK:1475

6.0%

HK Food

-11.1%

HK Market

1475 outperformed the Food industry which returned 7.7% over the past year.

1475 outperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

1475IndustryMarket
7 Day14.0%5.6%2.2%
30 Day7.8%-5.8%-7.3%
90 Day37.8%0.6%-4.8%
1 Year95.7%91.9%8.9%6.0%-7.9%-11.1%
3 Yearn/a50.8%39.8%15.5%4.1%
5 Yearn/a-0.1%-10.1%10.0%-8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nissin Foods undervalued based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nissin Foods's share price is below the future cash flow value, and at a moderate discount (> 20%).

Nissin Foods's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Nissin Foods is overvalued based on earnings compared to the HK Food industry average.

Nissin Foods is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Nissin Foods is poor value based on expected growth next year.


Price Based on Value of Assets

Nissin Foods is overvalued based on assets compared to the HK Food industry average.


Next Steps

Future Growth

How is Nissin Foods expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nissin Foods's revenue is expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

Nissin Foods's earnings are expected to grow by 15.8% yearly, however this is not considered high growth (20% yearly).

Nissin Foods's revenue growth is expected to exceed the Hong Kong market average.

Nissin Foods's earnings growth is expected to exceed the Hong Kong market average.

Nissin Foods's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Nissin Foods is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Nissin Foods performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nissin Foods's year on year earnings growth rate has been positive over the past 5 years.

Nissin Foods's 1-year earnings growth is less than its 5-year average (0.4% vs 18.7%)

Nissin Foods's earnings growth has not exceeded the HK Food industry average in the past year (0.4% vs 8.3%).


Return on Equity

Nissin Foods has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Nissin Foods used its assets less efficiently than the HK Food industry average last year based on Return on Assets.


Return on Capital Employed

Nissin Foods's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nissin Foods's financial position?


Financial Position Analysis

Nissin Foods is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nissin Foods's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nissin Foods has no debt.

Nissin Foods has not taken on any debt in the past 5 years.

Nissin Foods has no debt, it does not need to be covered by operating cash flow.

Nissin Foods has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Nissin Foods has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Nissin Foods's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Nissin Foods's dividend is below the markets top 25% of dividend payers in Hong Kong (6.12%).

It is too early to tell whether Nissin Foods has stable dividend payments.

Nissin Foods only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of Nissin Foods's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Kiyotaka Ando (40yo)

0.0yrs

Tenure

HK$5,358,000

Compensation

Mr. Kiyotaka Ando has been Managing Officer of Nissin Foods Holdings Co., Ltd since June 30, 2016. Mr. Ando serves as the Chairman and Chief Executive Officer of Nissin Foods Company Limited and has been i ...


CEO Compensation Analysis

Kiyotaka's remuneration is about average for companies of similar size in Hong Kong.

Kiyotaka's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

1.1yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Nissin Foods management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

The average tenure for the Nissin Foods board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellHK$161,479,18926 Mar 19
Nissin Foods Holdings Co., Ltd.
EntityCompany
Shares41,834,000
Max PriceHK$3.86
BuyHK$19,998,65426 Mar 19
Kiyotaka Ando
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,181,000
Max PriceHK$3.86

Ownership Breakdown


Management Team

  • Kazuhito Kusumoto (60yo)

    Managing Director of Winner Food

    • Tenure: 0.0yrs
  • Kiyotaka Ando (40yo)

    Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: HK$5.36m
  • Toshimichi Fujinawa (59yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: HK$1.30m
  • Shinji Tatsutani (55yo)

    CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.90m
  • Munehiko Ono (52yo)

    Chief Production Officer & Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$1.99m
  • Tai On Lo (65yo)

    Company Secretary

    • Tenure: 3.4yrs
  • Satoshi Niibe (54yo)

    Senior Executive Officer of Legal Matter & General Counsel

    • Tenure: 0.0yrs
  • Akifumi Aiba (43yo)

    Managing Director of Zhuhai Winner

    • Tenure: 0.0yrs
  • Siu Tat Chow (63yo)

    Senior Executive Officer of Human Resources & Administration

    • Tenure: 0.0yrs
  • Kazuo Kawasaka (54yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: HK$1.28m

Board Members

  • Ching Tong (83yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: HK$200.00k
  • Kiyotaka Ando (40yo)

    Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: HK$5.36m
  • Toshimichi Fujinawa (59yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: HK$1.30m
  • Shinji Tatsutani (55yo)

    CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.90m
  • Munehiko Ono (52yo)

    Chief Production Officer & Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$1.99m
  • Sumio Matsumoto (72yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$200.00k
  • Junichi Honda (73yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$200.00k
  • Lynne Nakano (54yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$200.00k
  • Kazuo Kawasaka (54yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: HK$1.28m

Company Information

Nissin Foods Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nissin Foods Company Limited
  • Ticker: 1475
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$7.089b
  • Shares outstanding: 1.07b
  • Website: https://www.nissingroup.com.hk

Number of Employees


Location

  • Nissin Foods Company Limited
  • 11-13 Dai Shun Street
  • Tai Po Industrial Estate
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1475SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2017

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:58
End of Day Share Price2019/08/22 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.