FukokuLtd (TSE:5185) - Share price, News & Analysis

5185 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	6/6

5185 Stock Overview

Fukoku Co.,Ltd. produces and sells rubber and resin products in Japan and internationally.

Rewards

Trading at 34.7% below our estimate of its fair value

Became profitable this year

Pays a high and reliable dividend of 5.07%

Risk Analysis

No risks detected for 5185 from our risk checks.

FukokuLtd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for FukokuLtd
Historical stock prices
Current Share Price	JP¥966.00
52 Week High	JP¥1,158.00
52 Week Low	JP¥875.00
Beta	0.64
1 Month Change	3.76%
3 Month Change	-0.10%
1 Year Change	5.46%
3 Year Change	36.63%
5 Year Change	2.66%
Change since IPO	-61.73%

Shareholder Returns

	5185	JP Auto Components	JP Market
7D	3.2%	-1.5%	-2.7%
1Y	5.5%	-6.0%	-2.5%

Return vs Industry: 5185 exceeded the JP Auto Components industry which returned -6% over the past year.

Return vs Market: 5185 exceeded the JP Market which returned -2.5% over the past year.

Price Volatility

Is 5185's price volatile compared to industry and market?
5185 volatility
5185 Average Weekly Movement	3.6%
Auto Components Industry Average Movement	4.8%
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: 5185 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 5185's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1953	4,893	Jiro Kawamoto	https://www.fukoku-rubber.co.jp

Fukoku Co.,Ltd. produces and sells rubber and resin products in Japan and internationally. The company offers wiper blade rubbers that are used in automobiles, trains, ships, and aircrafts; and seal products, including brake booster diaphragms, radiator gaskets, duty valves, piston seals, and constant velocity joints, which are used in automotive brake systems and fuel systems, as well as air intake and exhaust systems, and pneumatic tools and industrial machinery.

FukokuLtd Fundamentals Summary

How do FukokuLtd's earnings and revenue compare to its market cap?
5185 fundamental statistics
Market Cap	JP¥15.55b
Earnings (TTM)	JP¥3.12b
Revenue (TTM)	JP¥72.46b

5.0x

P/E Ratio

0.2x

P/S Ratio

Is 5185 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5185 income statement (TTM)
Revenue	JP¥72.46b
Cost of Revenue	JP¥60.07b
Gross Profit	JP¥12.39b
Other Expenses	JP¥9.27b
Earnings	JP¥3.12b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	193.90
Gross Margin	17.10%
Net Profit Margin	4.31%
Debt/Equity Ratio	33.0%

How did 5185 perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is FukokuLtd 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

34.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 5185 (¥966) is trading below our estimate of fair value (¥1480.18)

Significantly Below Fair Value: 5185 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 5185 is good value based on its PE Ratio (5x) compared to the JP Auto Components industry average (7.9x).

PE vs Market: 5185 is good value based on its PE Ratio (5x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5185's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 5185's PB Ratio (0.5x) is in line with the JP Auto Components industry average.

Future Growth

How is FukokuLtd 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

16.3%

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 FukokuLtd 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 FukokuLtd performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

1.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5185 has high quality earnings.

Growing Profit Margin: 5185 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 5185's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: 5185 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 5185 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (60.7%).

Return on Equity

High ROE: 5185's Return on Equity (9.4%) is considered low.

Financial Health

How is FukokuLtd's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 5185's short term assets (¥37.5B) exceed its short term liabilities (¥24.3B).

Long Term Liabilities: 5185's short term assets (¥37.5B) exceed its long term liabilities (¥6.9B).

Debt to Equity History and Analysis

Debt Level: 5185's net debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: 5185's debt to equity ratio has increased from 30% to 33% over the past 5 years.

Debt Coverage: 5185's debt is well covered by operating cash flow (61.1%).

Interest Coverage: 5185's interest payments on its debt are well covered by EBIT (41.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

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

5.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5185's dividend (5.07%) is higher than the bottom 25% of dividend payers in the JP market (1.61%).

High Dividend: 5185's dividend (5.07%) is in the top 25% of dividend payers in the JP market (3.61%)

Stability and Growth of Payments

Stable Dividend: 5185's dividends per share have been stable in the past 10 years.

Growing Dividend: 5185's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27%), 5185's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.9%), 5185's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Automobiles industry.

Management

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

11.8yrs

Average management tenure

CEO

Jiro Kawamoto (65 yo)

12.92yrs

Tenure

Mr. Jiro Kawamoto has been the President and a Representative Director of Fukoku Co. Ltd. since June 2009 & since June 2008 respectively and serves as its Chief Executive Officer.

Leadership Team

Experienced Management: 5185's management team is seasoned and experienced (11.8 years average tenure).

Board Members

Experienced Board: 5185's board of directors are seasoned and experienced ( 12.4 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	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31