TSE:7259

Stock Analysis Report

Executive Summary

Aisin Seiki Co., Ltd. manufactures and sells automotive parts, lifestyle and energy related products, and wellness related products worldwide.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Aisin Seiki's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7259 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

7259

0.4%

JP Auto Components

-2.2%

JP Market


1 Year Return

-9.5%

7259

-7.9%

JP Auto Components

4.5%

JP Market

Return vs Industry: 7259 matched the JP Auto Components industry which returned -8.9% over the past year.

Return vs Market: 7259 underperformed the JP Market which returned 4.3% over the past year.


Shareholder returns

7259IndustryMarket
7 Day5.1%0.4%-2.2%
30 Day-1.5%-6.3%-3.3%
90 Day-4.2%-7.5%-0.8%
1 Year-5.8%-9.5%-5.0%-7.9%7.1%4.5%
3 Year-24.3%-30.8%-9.6%-16.4%16.9%9.0%
5 Year0.5%-12.2%-4.0%-15.5%27.0%13.8%

Price Volatility Vs. Market

How volatile is Aisin Seiki's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7259 (¥3905) is trading below our estimate of fair value (¥9343.49)

Significantly Below Fair Value: 7259 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7259 is poor value based on its PE Ratio (14.3x) compared to the Auto Components industry average (10.5x).

PE vs Market: 7259 is good value based on its PE Ratio (14.3x) compared to the JP market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: 7259 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 7259 is overvalued based on its PB Ratio (0.8x) compared to the JP Auto Components industry average (0.5x).


Next Steps

Future Growth

How is Aisin Seiki forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7259's forecast earnings growth (29.9% per year) is above the savings rate (-0.09%).

Earnings vs Market: 7259's earnings (29.9% per year) are forecast to grow faster than the JP market (9.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 7259's revenue (3.1% per year) is forecast to grow slower than the JP market (3.5% per year).

High Growth Revenue: 7259's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7259's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Aisin Seiki performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7259 has high quality earnings.

Growing Profit Margin: 7259's current net profit margins (1.9%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: 7259's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: 7259's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7259 had negative earnings growth (-39.4%) over the past year, making it difficult to compare to the Auto Components industry average (-19.4%).


Return on Equity

High ROE: 7259's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aisin Seiki's financial position?


Financial Position Analysis

Short Term Liabilities: 7259's short term assets (¥1,452.0B) exceed its short term liabilities (¥917.2B).

Long Term Liabilities: 7259's short term assets (¥1,452.0B) exceed its long term liabilities (¥961.0B).


Debt to Equity History and Analysis

Debt Level: 7259's debt to equity ratio (35.3%) is considered satisfactory.

Reducing Debt: 7259's debt to equity ratio has increased from 27.2% to 35.3% over the past 5 years.

Debt Coverage: 7259's debt is well covered by operating cash flow (46.6%).

Interest Coverage: 7259 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 7259 has a high level of physical assets or inventory.

Debt Coverage by Assets: 7259's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Aisin Seiki's current dividend yield, its reliability and sustainability?

3.07%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 21 2020Ex Dividend DateMar 30 2020Dividend Pay DateJun 19 202081 days from Ex DividendBuy in the next 38 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 7259's dividend (3.07%) is higher than the bottom 25% of dividend payers in the JP market (1.39%).

High Dividend: 7259's dividend (3.07%) is low compared to the top 25% of dividend payers in the JP market (3.1%).


Stability and Growth of Payments

Stable Dividend: 7259's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7259's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.9%), 7259's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Kiyotaka Ise (64yo)

1.7yrs

Tenure

Mr. Kiyotaka Ise has been President and Director of Aisin Seiki Co., Ltd. since June 2018. He was the President of Lexus International and Senior Managing Officer at Toyota Motor Corp since 2013. Mr. Ise w ...


Leadership Team

NamePositionTenureCompensationOwnership
Kiyotaka Ise
President & Director1.7yrsno data0.0037% ¥39.0m
Kazumi Usami
Operating Officer7.7yrsno data0.0085% ¥89.8m
Masayasu Saito
Senior Managing Officer0yrsno datano data
Toshiyuki Mizushima
Executive VP & Director1.7yrsno data0.0052% ¥54.7m
Makoto Mitsuya
Executive VP & Director10.7yrsno data0.016% ¥164.1m
Takahisa Hirose
Operating Officers0yrsno datano data
Seiichi Takahashi
Senior Managing Officer0yrsno datano data
Hiroaki Tatematsu
VP & Corporate Officer0yrsno datano data
Shintaro Ito
Operating Officers0yrsno datano data
Hirotoshi Ito
Operating Officers0yrsno datano data

4.2yrs

Average Tenure

62yo

Average Age

Experienced Management: 7259's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kiyotaka Ise
President & Director1.7yrsno data0.0037% ¥39.0m
Toshiyuki Mizushima
Executive VP & Director1.7yrsno data0.0052% ¥54.7m
Makoto Mitsuya
Executive VP & Director10.7yrsno data0.016% ¥164.1m
Kanshiro Toyoda
Chairman of the Board14.7yrsJP¥104.00m0.37% ¥3.9b
Toshikazu Nagura
Standing Auditor3.7yrsno data0.018% ¥187.4m
Kazuhisa Ozaki
Director4.7yrsno data0.0059% ¥62.5m
Ryo Kobayashi
External Auditor10.7yrsno data0.00037% ¥3.9m
Hikaru Takasu
External Auditor9.7yrsno data0.00074% ¥7.8m
Masayoshi Hotta
Standing Auditor7.7yrsno data0.0019% ¥19.6m
Tetsuya Otake
Director0yrsno data0.0011% ¥11.7m

7.7yrs

Average Tenure

63yo

Average Age

Experienced Board: 7259's board of directors are considered experienced (7.7 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.


Top Shareholders

Company Information

Aisin Seiki Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aisin Seiki Co., Ltd.
  • Ticker: 7259
  • Exchange: TSE
  • Founded: 1943
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: JP¥1.052t
  • Shares outstanding: 269.49m
  • Website: https://www.aisin.com

Number of Employees


Location

  • Aisin Seiki Co., Ltd.
  • 2-1, Asahi-machi
  • Kariya
  • Aichi
  • 448-8650
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7259TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
AKNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
ASEK.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
ASEK.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2008

Biography

Aisin Seiki Co., Ltd. manufactures and sells automotive parts, lifestyle and energy related products, and wellness related products worldwide. It offers powertrain related products, such as automatic, manual, and hybrid transmission products; and CVT, engine, and other products. The company also provides chassis and vehicle safety systems comprising parking assist systems, driver monitoring systems, disc brakes, brake assemblies, electric parking brakes, brake master cylinder with brake assistance, electronically controlled brake systems, ABS and ESC modulators, brake calipers, power tilt and telescopic steering columns, air suspension systems, and active rear steering systems. In addition, it offers window regulators, power sliding and back door systems, power door latches, slide door closers, and smart handles, as well as door frames, hinges, checks, handles, and beams; frame moldings, roof rails, rear spoilers, sunroofs, and structural adhesives; bumper and pillar reinforcements, crash boxes, center pillar garnishes, grille shutters, spray damping coats, and waterborne anti-corrosion paints; and occupant detection sensors, power seats, recliners, rear seat relaxation systems, electrical retracts seats, seat slide sensors for airbag control system, detection sensors for seat belt warning, and pneumatic seats. Further, the company provides engine front modules, water and oil pumps, variable valve timings, oil pump rotors, intake and exhaust manifolds, pistons, oil pans, cylinder head covers, and fuel rails; voice and car navigation systems, and wide-view front and multi-terrain monitors; and aftermarket products. Additionally, it offers beds, furniture, fabrics, sewing machines, cogeneration systems, housing equipment, and audio equipment; gas heat pump air conditioning systems and Peltier modules; and fiber lasers. The company was founded in 1943 and is headquartered in Kariya, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 15:07
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.