Yutaka GikenLtd (TSE:7229) - Share price, News & Analysis

7229 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	6/6

7229 Stock Overview

Yutaka Giken Co.,Ltd. manufactures and sells automobile parts in Japan and internationally.

Rewards

Trading at 1.5% below our estimate of its fair value

Became profitable this year

Pays a high and reliable dividend of 4.38%

Risk Analysis

Earnings have declined by 32.4% per year over past 5 years

Yutaka GikenLtd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Yutaka GikenLtd
Historical stock prices
Current Share Price	JP¥1,826.00
52 Week High	JP¥2,125.00
52 Week Low	JP¥1,682.00
Beta	1.14
1 Month Change	3.81%
3 Month Change	1.39%
1 Year Change	-3.23%
3 Year Change	3.87%
5 Year Change	-22.95%
Change since IPO	194.99%

Shareholder Returns

	7229	JP Auto Components	JP Market
7D	3.0%	0.05%	-0.02%
1Y	-3.2%	-8.8%	-3.6%

Return vs Industry: 7229 exceeded the JP Auto Components industry which returned -8.8% over the past year.

Return vs Market: 7229 matched the JP Market which returned -3.6% over the past year.

Price Volatility

Is 7229's price volatile compared to industry and market?
7229 volatility
7229 Average Weekly Movement	3.0%
Auto Components Industry Average Movement	5.1%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 7229 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 7229's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1954	6,114	Naoki Shiraishi	https://www.yutakagiken.co.jp

Yutaka Giken Co.,Ltd. manufactures and sells automobile parts in Japan and internationally. Its products include torque converters; exhaust system products, such as exhaust manifolds, catalytic converters, silencers, and heat collectors; brake discs for motorcycles; and motor parts, including stator cores and rotors.

Yutaka GikenLtd Fundamentals Summary

How do Yutaka GikenLtd's earnings and revenue compare to its market cap?
7229 fundamental statistics
Market Cap	JP¥26.97b
Earnings (TTM)	JP¥4.47b
Revenue (TTM)	JP¥213.40b

6.1x

P/E Ratio

0.1x

P/S Ratio

Is 7229 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7229 income statement (TTM)
Revenue	JP¥213.40b
Cost of Revenue	JP¥190.73b
Gross Profit	JP¥22.67b
Other Expenses	JP¥18.20b
Earnings	JP¥4.47b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	301.39
Gross Margin	10.62%
Net Profit Margin	2.09%
Debt/Equity Ratio	11.0%

How did 7229 perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

12%

Payout Ratio

Valuation

Is Yutaka GikenLtd 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

1.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 7229 (¥1826) is trading below our estimate of fair value (¥1852.93)

Significantly Below Fair Value: 7229 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 7229 is good value based on its PE Ratio (6.1x) compared to the JP Auto Components industry average (8.1x).

PE vs Market: 7229 is good value based on its PE Ratio (6.1x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7229's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 7229 is good value based on its PB Ratio (0.3x) compared to the JP Auto Components industry average (0.4x).

Future Growth

How is Yutaka GikenLtd 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

16.5%

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 Yutaka GikenLtd 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 Yutaka GikenLtd 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

-32.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7229 has high quality earnings.

Growing Profit Margin: 7229 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 7229's earnings have declined by 32.4% per year over the past 5 years.

Accelerating Growth: 7229 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 7229 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (35.9%).

Return on Equity

High ROE: 7229's Return on Equity (7.2%) is considered low.

Financial Health

How is Yutaka GikenLtd's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 7229's short term assets (¥150.6B) exceed its short term liabilities (¥108.9B).

Long Term Liabilities: 7229's short term assets (¥150.6B) exceed its long term liabilities (¥4.5B).

Debt to Equity History and Analysis

Debt Level: 7229 has more cash than its total debt.

Reducing Debt: 7229's debt to equity ratio has reduced from 26.1% to 11% over the past 5 years.

Debt Coverage: 7229's debt is well covered by operating cash flow (116.3%).

Interest Coverage: 7229 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Yutaka GikenLtd 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

4.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7229's dividend (4.38%) is higher than the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 7229's dividend (4.38%) is in the top 25% of dividend payers in the JP market (3.65%)

Stability and Growth of Payments

Stable Dividend: 7229's dividends per share have been stable in the past 10 years.

Growing Dividend: 7229's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.9%), 7229's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.1%), 7229'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?

2.3yrs

Average management tenure

CEO

Naoki Shiraishi (61 yo)

2.33yrs

Tenure

Mr. Naoki Shiraishi was Managing Director of Yutaka Giken Co.,Ltd. since June 2018 until 2020 and has also been its President since 2020. Mr. Shiraishi serves as General Manager of Asia Region Division at...

Leadership Team

Experienced Management: 7229's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: 7229's board of directors are considered experienced (4.9 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	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31