Aska (NSE:7227) - Share price, News & Analysis

7227 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	5/6

7227 Stock Overview

Aska Corporation manufactures and sells automotive parts, power distribution boards, and robot systems in Japan.

Rewards

Trading at 73.3% below our estimate of its fair value

Earnings grew by 147.3% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Does not have a meaningful market cap (¥5B)

Aska Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aska
Historical stock prices
Current Share Price	JP¥945.00
52 Week High	JP¥1,126.00
52 Week Low	JP¥860.00
Beta	0.51
1 Month Change	-8.25%
3 Month Change	-4.16%
1 Year Change	8.87%
3 Year Change	-6.71%
5 Year Change	16.96%
Change since IPO	-10.85%

Shareholder Returns

	7227	JP Auto Components	JP Market
7D	-6.9%	1.9%	1.5%
1Y	8.9%	-7.3%	-2.7%

Return vs Industry: 7227 exceeded the JP Auto Components industry which returned -7.7% over the past year.

Return vs Market: 7227 exceeded the JP Market which returned -2.9% over the past year.

Price Volatility

Is 7227's price volatile compared to industry and market?
7227 volatility
7227 Average Weekly Movement	5.6%
Auto Components Industry Average Movement	5.0%
Market Average Movement	4.5%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 7227 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 7227's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1951	724	Yoshinori Katayama	https://www.aska.co.jp

Aska Corporation manufactures and sells automotive parts, power distribution boards, and robot systems in Japan. The company’s distribution boards comprise control panels, various cabinet boxes, chargers for electric vehicles, and press deep drawing products, as well as OEM products. It also provides powder coating by automatic conveyor lines, punching machines with high speed lasers, and corner plasma welding machines.

Aska Fundamentals Summary

How do Aska's earnings and revenue compare to its market cap?
7227 fundamental statistics
Market Cap	JP¥5.40b
Earnings (TTM)	JP¥989.00m
Revenue (TTM)	JP¥28.41b

5.5x

P/E Ratio

0.2x

P/S Ratio

Is 7227 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7227 income statement (TTM)
Revenue	JP¥28.41b
Cost of Revenue	JP¥25.61b
Gross Profit	JP¥2.80b
Other Expenses	JP¥1.81b
Earnings	JP¥989.00m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	173.22
Gross Margin	9.84%
Net Profit Margin	3.48%
Debt/Equity Ratio	163.4%

How did 7227 perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

21%

Payout Ratio

Does 7227 pay a reliable dividends?

See 7227 dividend history and benchmarks

When do you need to buy 7227 by to receive an upcoming dividend?
Aska dividend dates
Ex Dividend Date	May 30 2022
Dividend Pay Date	Aug 01 2022
Days until Ex dividend	6 days
Days until Dividend pay date	69 days

Does 7227 pay a reliable dividends?

See 7227 dividend history and benchmarks

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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: 7227 (¥945) is trading below our estimate of fair value (¥3536.54)

Significantly Below Fair Value: 7227 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 7227 is good value based on its PE Ratio (5.5x) compared to the JP Auto Components industry average (9x).

PE vs Market: 7227 is good value based on its PE Ratio (5.5x) compared to the JP market (12.2x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7227's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 7227 is overvalued based on its PB Ratio (0.6x) compared to the JP Auto Components industry average (0.4x).

Future Growth

How is Aska forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

16.4%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aska has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Aska performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

11.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7227 has high quality earnings.

Growing Profit Margin: 7227's current net profit margins (3.5%) are higher than last year (1.7%).

Past Earnings Growth Analysis

Earnings Trend: 7227's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: 7227's earnings growth over the past year (147.3%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: 7227 earnings growth over the past year (147.3%) exceeded the Auto Components industry 35.9%.

Return on Equity

High ROE: 7227's Return on Equity (11.1%) is considered low.

Financial Health

How is Aska's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: 7227's short term assets (¥10.1B) do not cover its short term liabilities (¥13.8B).

Long Term Liabilities: 7227's short term assets (¥10.1B) exceed its long term liabilities (¥9.4B).

Debt to Equity History and Analysis

Debt Level: 7227's net debt to equity ratio (143.9%) is considered high.

Reducing Debt: 7227's debt to equity ratio has increased from 139% to 163.4% over the past 5 years.

Debt Coverage: 7227's debt is well covered by operating cash flow (22.4%).

Interest Coverage: 7227's interest payments on its debt are well covered by EBIT (46.4x coverage).

Balance Sheet

Dividend

What is Aska current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

4.02%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 7227's dividend (4.02%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 7227's dividend (4.02%) is in the top 25% of dividend payers in the JP market (3.7%)

Stability and Growth of Payments

Stable Dividend: 7227's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7227's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.8%), 7227's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.2%), 7227's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

8.7yrs

Average management tenure

CEO

Yoshinori Katayama (54 yo)

7.25yrs

Tenure

Mr. Yoshinori Katayama also has been President of Aska Usa Corporation since May 2007. Mr. Katayama has been President and Representative Director of Aska Corp. since February 2015. Mr. Katayama has been S...

Leadership Team

Experienced Management: 7227's management team is seasoned and experienced (8.7 years average tenure).

Board Members

Experienced Board: 7227's board of directors are seasoned and experienced ( 11.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/02/28
Annual Earnings	2021/11/30