Nankai Tatsumura Construction (TSE:1850) - Share price, News & Analysis

1850 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

1850 Overview

Nankai Tatsumura Construction Co., Ltd. operates as a construction company in Japan.

Rewards

Trading at 75.1% below our estimate of its fair value

Earnings grew by 85.7% over the past year

Risk Analysis

Earnings have declined by 32% per year over past 5 years

Large one-off items impacting financial results

Does not have a meaningful market cap (¥9B)

Price History & Performance

Summary of all time highs, changes and price drops for Nankai Tatsumura Construction
Historical stock prices
Current Share Price	JP¥320.00
52 Week High	JP¥260.00
52 Week Low	JP¥356.00
Beta	0.93
1 Month Change	2.56%
3 Month Change	2.56%
1 Year Change	18.08%
3 Year Change	-47.71%
5 Year Change	-39.62%
Change since IPO	-95.04%

Shareholder Returns

	1850	JP Construction	JP Market
7D	-5.6%	-2.7%	-2.2%
1Y	18.1%	9.0%	23.6%

Return vs Industry: 1850 exceeded the JP Construction industry which returned 9% over the past year.

Return vs Market: 1850 underperformed the JP Market which returned 23.6% over the past year.

Price Volatility

Is 1850's price volatile compared to industry and market?
1850 volatility
1850 Beta	0.93
Industry Beta	0.71
Market Beta	1

Stable Share Price: 1850 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1850's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1923	519	Koichi Izaki	https://www.nantatsu.co.jp

Nankai Tatsumura Construction Co., Ltd. operates as a construction company in Japan. The company undertakes civil engineering, construction, pipe, electrical, and telecommunications construction works, as well as general construction works. It also owns and sells real estate properties.

Nankai Tatsumura Construction Fundamentals Summary

How do Nankai Tatsumura Construction's earnings and revenue compare to its market cap?
1850 fundamental statistics
Market Cap	JP¥9.22b
Earnings (TTM)	JP¥819.00m
Revenue (TTM)	JP¥43.91b

11.3x

P/E Ratio

0.2x

P/S Ratio

Is 1850 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1850 income statement (TTM)
Revenue	JP¥43.91b
Cost of Revenue	JP¥39.88b
Gross Profit	JP¥4.02b
Expenses	JP¥3.20b
Earnings	JP¥819.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)	28.41
Gross Margin	9.16%
Net Profit Margin	1.87%
Debt/Equity Ratio	25.4%

How did 1850 perform over the long term?

See historical performance and comparison

Valuation

Is Nankai Tatsumura Construction 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: 1850 (¥320) is trading below our estimate of fair value (¥1284.48)

Significantly Below Fair Value: 1850 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 1850 is poor value based on its PE Ratio (11.3x) compared to the JP Construction industry average (9.3x).

PE vs Market: 1850 is good value based on its PE Ratio (11.3x) compared to the JP market (14.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1850's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 1850's PB Ratio (0.8x) is in line with the JP Construction industry average.

Future Growth

How is Nankai Tatsumura Construction forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.3%

Forecasted Capital Goods 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 Nankai Tatsumura Construction 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 Nankai Tatsumura Construction performed over the past 5 years?

-32.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1850 has a large one-off loss of ¥595.0M impacting its June 30 2021 financial results.

Growing Profit Margin: 1850's current net profit margins (1.9%) are higher than last year (1.1%).

Past Earnings Growth Analysis

Earnings Trend: 1850's earnings have declined by 32% per year over the past 5 years.

Accelerating Growth: 1850's earnings growth over the past year (85.7%) exceeds its 5-year average (-32% per year).

Earnings vs Industry: 1850 earnings growth over the past year (85.7%) exceeded the Construction industry 0.7%.

Return on Equity

High ROE: 1850's Return on Equity (7.1%) is considered low.

Financial Health

How is Nankai Tatsumura Construction's financial position?

Financial Position Analysis

Short Term Liabilities: 1850's short term assets (¥25.6B) exceed its short term liabilities (¥17.5B).

Long Term Liabilities: 1850's short term assets (¥25.6B) exceed its long term liabilities (¥1.8B).

Debt to Equity History and Analysis

Debt Level: 1850's debt to equity ratio (25.4%) is considered satisfactory.

Reducing Debt: 1850's debt to equity ratio has reduced from 79% to 25.4% over the past 5 years.

Debt Coverage: 1850's debt is well covered by operating cash flow (77.9%).

Interest Coverage: 1850's interest payments on its debt are well covered by EBIT (78.3x coverage).

Balance Sheet

Dividend

What is Nankai Tatsumura Construction current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1850's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1850's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1850's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1850's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1850's dividend in 3 years as they are not forecast to pay a notable one for the JP market.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

7.3yrs

Average management tenure

CEO

Koichi Izaki (66 yo)

12.25yrs

Tenure

Mr. Koichi Izaki has been the Executive President and Representative Director of Nankai Tatsumura Construction Co.,Ltd. since June 2009 and served as its Chief Executive Officer. Mr. Izaki served as a Dire...

Leadership Team

Experienced Management: 1850's management team is seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: 1850's board of directors are seasoned and experienced ( 10.3 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	2021/09/23 08:01
End of Day Share Price	2021/09/22 00:00
Earnings	2021/06/30
Annual Earnings	2021/03/31

Market Cap

7D

1Y

Updated

Data