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.

Rewards

Earnings are forecast to grow 14.99% per year

Earnings grew by 14.9% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with proven track record.


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

Stable Share Price: 1475 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

1475

0.2%

HK Food

0.5%

HK Market


1 Year Return

68.0%

1475

20.0%

HK Food

-0.2%

HK Market

Return vs Industry: 1475 exceeded the Hong Kong Food industry which returned 20% over the past year.

Return vs Market: 1475 exceeded the Hong Kong Market which returned -0.2% over the past year.


Shareholder returns

1475IndustryMarket
7 Day-1.0%0.2%0.5%
30 Day-7.3%-1.3%-3.8%
90 Day-10.3%4.5%-1.3%
1 Year71.4%68.0%23.2%20.0%3.4%-0.2%
3 Yearn/a46.1%35.5%18.8%6.7%
5 Yearn/a27.1%14.0%19.5%-0.5%

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 compared to its fair value and its price relative to the market?

26.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1475 (HK$6.1) is trading above our estimate of fair value (HK$5.98)

Significantly Below Fair Value: 1475 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1475 is poor value based on its PE Ratio (26.2x) compared to the Food industry average (15.9x).

PE vs Market: 1475 is poor value based on its PE Ratio (26.2x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1475 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 1475 is overvalued based on its PB Ratio (1.9x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is Nissin Foods forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1475's forecast earnings growth (15% per year) is above the savings rate (1.6%).

Earnings vs Market: 1475's earnings (15% per year) are forecast to grow faster than the Hong Kong market (11.9% per year).

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

Revenue vs Market: 1475's revenue (8.7% per year) is forecast to grow slower than the Hong Kong market (9.8% per year).

High Growth Revenue: 1475's revenue (8.7% 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 (8.9%).


Next Steps

Past Performance

How has Nissin Foods performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1475 has high quality earnings.

Growing Profit Margin: 1475's current net profit margins (8.2%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: 1475's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: 1475's earnings growth over the past year (14.9%) is below its 5-year average (20.3% per year).

Earnings vs Industry: 1475 earnings growth over the past year (14.9%) exceeded the Food industry 2%.


Return on Equity

High ROE: 1475's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nissin Foods's financial position?


Financial Position Analysis

Short Term Liabilities: 1475's short term assets (HK$3.0B) exceed its short term liabilities (HK$826.0M).

Long Term Liabilities: 1475's short term assets (HK$3.0B) exceed its long term liabilities (HK$55.7M).


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

Inventory Level: 1475 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1475's debt is covered by short term assets (assets are 1.3457462751725E+19x debt).


Next Steps

Dividend

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

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.3%markettop25%6.2%industryaverage2.3%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: 1475's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1475's dividend (1.56%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.23%).


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 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.7%), 1475's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1475's dividends in 3 years are forecast to be well covered by earnings (48.3% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Kiyotaka Ando (40yo)

0yrs

Tenure

HK$5,358,000

Compensation

Mr. Kiyotaka Ando has been Managing Officer and Chief Representative of East Asia at Nissin Foods Holdings Co., Ltd and joined the organization on June 30, 2016. Mr. Ando serves as the Chairman and Chief E ...


CEO Compensation Analysis

Compensation vs Market: Kiyotaka's total compensation ($USD684.44K) is above average for companies of similar size in the Hong Kong market ($USD488.61K).

Compensation vs Earnings: Kiyotaka's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.4yrs

Average Tenure

57yo

Average Age

Experienced Management: 1475's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 1475's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Management Team

  • Taiji Matsumura (69yo)

    Senior Executive Officer of Procurement

    • Tenure: 0yrs
  • Kazuhito Kusumoto (60yo)

    Managing Director of Winner Food

    • Tenure: 0yrs
  • Kiyotaka Ando (40yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$5.36m
  • Toshimichi Fujinawa (59yo)

    Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$1.30m
  • Shinji Tatsutani (55yo)

    CFO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$1.90m
  • Munehiko Ono (52yo)

    Chief Production Officer & Executive Director

    • Tenure: 5.9yrs
    • Compensation: HK$1.99m
  • Tai On Lo (65yo)

    Company Secretary

    • Tenure: 3.8yrs
  • Akifumi Aiba (43yo)

    Managing Director of Zhuhai Winner

    • Tenure: 0yrs
  • Siu Tat Chow (63yo)

    Senior Executive Officer of Human Resources & Administration

    • Tenure: 0yrs
  • Kazuo Kawasaka (54yo)

    Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$1.28m

Board Members

  • Kiyotaka Ando (40yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$5.36m
  • Toshimichi Fujinawa (59yo)

    Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$1.30m
  • Shinji Tatsutani (55yo)

    CFO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$1.90m
  • Munehiko Ono (52yo)

    Chief Production Officer & Executive Director

    • Tenure: 5.9yrs
    • Compensation: HK$1.99m
  • Sumio Matsumoto (72yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$200.00k
  • Junichi Honda (73yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$200.00k
  • Lynne Nakano (54yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$200.00k
  • Kazuo Kawasaka (54yo)

    Executive Director

    • Tenure: 1.4yrs
    • 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$6.638b
  • 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 Analysis2019/12/10 13:12
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.