Fine Sinter (TSE:5994) - Share price, News & Analysis

5994 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	5/6

5994 Stock Overview

Fine Sinter Co., Ltd. manufactures and sells automobile parts, railroad vehicle parts, and hydraulic equipment worldwide.

Rewards

Became profitable this year

Risk Analysis

Earnings have declined by 16.8% per year over past 5 years

Has a high level of debt

Unstable dividend track record

Does not have a meaningful market cap (¥6B)

Fine Sinter Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fine Sinter
Historical stock prices
Current Share Price	JP¥1,400.00
52 Week High	JP¥2,040.00
52 Week Low	JP¥1,370.00
Beta	0.39
1 Month Change	0.65%
3 Month Change	-4.70%
1 Year Change	-16.81%
3 Year Change	-36.10%
5 Year Change	-30.83%
Change since IPO	-44.44%

Shareholder Returns

	5994	JP Auto Components	JP Market
7D	0.5%	-1.5%	-2.7%
1Y	-16.8%	-6.0%	-2.5%

Return vs Industry: 5994 underperformed the JP Auto Components industry which returned -6% over the past year.

Return vs Market: 5994 underperformed the JP Market which returned -2.5% over the past year.

Price Volatility

Is 5994's price volatile compared to industry and market?
5994 volatility
5994 Average Weekly Movement	3.4%
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: 5994 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 5994's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1950	2,281	Yoichi Inoue	https://www.fine-sinter.com

Fine Sinter Co., Ltd. manufactures and sells automobile parts, railroad vehicle parts, and hydraulic equipment worldwide. Its automotive parts include engines, shock absorbers, transmission and parts, steering parts, body parts, and brakes. The company also offers pantograph contact strips and brake linings for railroad vehicles; industrial machinery, such as industrial machinery parts, business machines/home electric appliances, and sintered vents; and hydraulic units comprising hydraulic equipment and hydraulic packages.

Fine Sinter Fundamentals Summary

How do Fine Sinter's earnings and revenue compare to its market cap?
5994 fundamental statistics
Market Cap	JP¥6.16b
Earnings (TTM)	JP¥208.00m
Revenue (TTM)	JP¥38.96b

29.6x

P/E Ratio

0.2x

P/S Ratio

Is 5994 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5994 income statement (TTM)
Revenue	JP¥38.96b
Cost of Revenue	JP¥34.37b
Gross Profit	JP¥4.59b
Other Expenses	JP¥4.38b
Earnings	JP¥208.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	47.26
Gross Margin	11.77%
Net Profit Margin	0.53%
Debt/Equity Ratio	75.6%

How did 5994 perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

85%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

29.62x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 5994 (¥1400) is trading above our estimate of fair value (¥743.22)

Significantly Below Fair Value: 5994 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 5994 is poor value based on its PE Ratio (29.6x) compared to the JP Auto Components industry average (7.9x).

PE vs Market: 5994 is poor value based on its PE Ratio (29.6x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5994's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 5994's PB Ratio (0.3x) is in line with the JP Auto Components industry average.

Future Growth

How is Fine Sinter 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 Fine Sinter 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 Fine Sinter 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

-16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5994 has high quality earnings.

Growing Profit Margin: 5994 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 5994's earnings have declined by 16.8% per year over the past 5 years.

Accelerating Growth: 5994 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 5994 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: 5994's Return on Equity (2%) is considered low.

Financial Health

How is Fine Sinter's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: 5994's short term assets (¥21.5B) exceed its short term liabilities (¥20.6B).

Long Term Liabilities: 5994's short term assets (¥21.5B) exceed its long term liabilities (¥9.5B).

Debt to Equity History and Analysis

Debt Level: 5994's net debt to equity ratio (47%) is considered high.

Reducing Debt: 5994's debt to equity ratio has increased from 60.6% to 75.6% over the past 5 years.

Debt Coverage: 5994's debt is well covered by operating cash flow (26.5%).

Interest Coverage: 5994's interest payments on its debt are well covered by EBIT (4x coverage).

Balance Sheet

Dividend

What is Fine Sinter 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

4.29%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5994's dividend (4.29%) is higher than the bottom 25% of dividend payers in the JP market (1.61%).

High Dividend: 5994's dividend (4.29%) is in the top 25% of dividend payers in the JP market (3.61%)

Stability and Growth of Payments

Stable Dividend: 5994's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5994's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.6%), 5994's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.6%), 5994'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?

6.9yrs

Average management tenure

CEO

Yoichi Inoue (63 yo)

8.92yrs

Tenure

Mr. Yoichi Inoue has been the President at Fine Sinter Co., Ltd. since June 2013 and serves as its Executive Officer since 2019. Mr. Inoue served as Managing Executive Officer of Fine Sinter Co., Ltd.sinc...

Leadership Team

Experienced Management: 5994's management team is seasoned and experienced (6.9 years average tenure).

Board Members

Experienced Board: 5994's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

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	2022/03/31
Annual Earnings	2022/03/31