Yachiyo Industry (TSE:7298) - Share price, News & Analysis

7298 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

7298 Stock Overview

Yachiyo Industry Co., Ltd. develops, produces, and sells automobile parts in Japan, the Americas, China, Europe, and Asia.

Rewards

Trading at 51.3% below our estimate of its fair value

Earnings grew by 673.9% over the past year

Risk Analysis

Earnings have declined by 11% per year over past 5 years

Unstable dividend track record

Volatile share price over the past 3 months

Yachiyo Industry Competitors

Compagnie Plastic Omnium

ENXTPA:POM

€2.4b

YAPP Automotive Systems

SHSE:603013

CN¥7.4b

TI Fluid Systems

LSE:TIFS

UK£847.8m

Price History & Performance

Summary of all time highs, changes and price drops for Yachiyo Industry
Historical stock prices
Current Share Price	JP¥626.00
52 Week High	JP¥1,063.00
52 Week Low	JP¥547.00
Beta	1.47
1 Month Change	-10.70%
3 Month Change	-13.77%
1 Year Change	6.46%
3 Year Change	-8.21%
5 Year Change	-46.54%
Change since IPO	-43.56%

Shareholder Returns

	7298	JP Auto Components	JP Market
7D	1.8%	1.9%	1.5%
1Y	6.5%	-7.3%	-2.7%

Return vs Industry: 7298 exceeded the JP Auto Components industry which returned -7.7% over the past year.

Return vs Market: 7298 exceeded the JP Market which returned -2.9% over the past year.

Price Volatility

Is 7298's price volatile compared to industry and market?
7298 volatility
7298 Average Weekly Movement	7.4%
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: 7298 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 7298's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
1953	6,819	Norihide Kato	https://www.yachiyo-ind.co.jp

Yachiyo Industry Co., Ltd. develops, produces, and sells automobile parts in Japan, the Americas, China, Europe, and Asia. It manufactures plastic and steel fuel tanks; tilt inner slide, outer slide, popup, and panorama sunroofs; plastic parts, including bumpers and instrument panels; and motorcycle parts. The company was formerly known as Yachiyo Painting Co., Ltd.

Yachiyo Industry Fundamentals Summary

How do Yachiyo Industry's earnings and revenue compare to its market cap?
7298 fundamental statistics
Market Cap	JP¥14.99b
Earnings (TTM)	JP¥5.15b
Revenue (TTM)	JP¥164.23b

2.9x

P/E Ratio

0.1x

P/S Ratio

Is 7298 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7298 income statement (TTM)
Revenue	JP¥164.23b
Cost of Revenue	JP¥139.64b
Gross Profit	JP¥24.59b
Other Expenses	JP¥19.44b
Earnings	JP¥5.15b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	215.29
Gross Margin	14.97%
Net Profit Margin	3.14%
Debt/Equity Ratio	22.2%

How did 7298 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

7%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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: 7298 (¥626) is trading below our estimate of fair value (¥1284.71)

Significantly Below Fair Value: 7298 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 7298 is good value based on its PE Ratio (2.9x) compared to the JP Auto Components industry average (9x).

PE vs Market: 7298 is good value based on its PE Ratio (2.9x) compared to the JP market (12.2x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7298's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 7298 is good value based on its PB Ratio (0.2x) compared to the JP Auto Components industry average (0.4x).

Future Growth

How is Yachiyo Industry 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 Yachiyo Industry 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 Yachiyo Industry performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-11.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7298 has high quality earnings.

Growing Profit Margin: 7298's current net profit margins (3.1%) are higher than last year (0.4%).

Past Earnings Growth Analysis

Earnings Trend: 7298's earnings have declined by 11% per year over the past 5 years.

Accelerating Growth: 7298's earnings growth over the past year (673.9%) exceeds its 5-year average (-11% per year).

Earnings vs Industry: 7298 earnings growth over the past year (673.9%) exceeded the Auto Components industry 35.9%.

Return on Equity

High ROE: 7298's Return on Equity (8.4%) is considered low.

Financial Health

How is Yachiyo Industry'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: 7298's short term assets (¥84.5B) exceed its short term liabilities (¥47.5B).

Long Term Liabilities: 7298's short term assets (¥84.5B) exceed its long term liabilities (¥19.4B).

Debt to Equity History and Analysis

Debt Level: 7298 has more cash than its total debt.

Reducing Debt: 7298's debt to equity ratio has reduced from 30.8% to 22.2% over the past 5 years.

Debt Coverage: 7298's debt is well covered by operating cash flow (75.8%).

Interest Coverage: 7298 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Yachiyo Industry current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

2.88%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7298's dividend (2.88%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 7298's dividend (2.88%) is low compared to the top 25% of dividend payers in the JP market (3.7%).

Stability and Growth of Payments

Stable Dividend: 7298's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7298's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6.5%), 7298's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (7.8%), 7298'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?

2.1yrs

Average board tenure

CEO

Norihide Kato (60 yo)

1.92yrs

Tenure

Mr. Norihide Kato is President and Representative Director of Yachiyo Industry Co., Ltd. from June 2020 and June 2019 respectively. He is Chairman and Chief Executive Officer of Yachiyo Industry Co., Ltd....

Board Members

Experienced Board: 7298's board of directors are not considered experienced ( 2.1 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	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31