TSE:5201

Stock Analysis Report

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Executive Summary

AGC Inc. manufactures and sells glass, electronics, chemicals, and ceramics worldwide. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 5201 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

5201

1.7%

JP Building

-0.9%

JP Market


1 Year Return

-7.6%

5201

17.7%

JP Building

1.3%

JP Market

Return vs Industry: 5201 underperformed the JP Building industry which returned 17.7% over the past year.

Return vs Market: 5201 underperformed the JP Market which returned 1.3% over the past year.


Shareholder returns

5201IndustryMarket
7 Day3.8%1.7%-0.9%
30 Day4.3%1.0%0.007%
90 Day1.7%5.0%4.7%
1 Year-4.4%-7.6%20.0%17.7%3.8%1.3%
3 Year-17.3%-24.7%21.9%14.6%2.0%-5.1%
5 Year3.0%-10.9%73.7%56.9%24.0%10.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

30.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5201 (¥3285) is trading above our estimate of fair value (¥1408.53)

Significantly Below Fair Value: 5201 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5201 is poor value based on its PE Ratio (30.8x) compared to the JP Building industry average (12.1x).

PE vs Market: 5201 is poor value based on its PE Ratio (30.8x) compared to the JP market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: 5201 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 5201's PB Ratio (0.7x) is in line with the JP Building industry average.


Next Steps

Future Growth

How is AGC forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5201's forecast earnings growth (31.1% per year) is above the savings rate (0.05%).

Earnings vs Market: 5201's earnings (31.1% per year) are forecast to grow faster than the JP market (17.4% per year).

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

Revenue vs Market: 5201's revenue (3.9% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 5201's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5201's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has AGC performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5201 has a large one-off loss of ¥33.4B impacting its June 30 2020 financial results.

Growing Profit Margin: 5201's current net profit margins (1.6%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: 5201's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: 5201's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5201 had negative earnings growth (-67.9%) over the past year, making it difficult to compare to the Building industry average (-0.6%).


Return on Equity

High ROE: 5201's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is AGC's financial position?


Financial Position Analysis

Short Term Liabilities: 5201's short term assets (¥980.1B) exceed its short term liabilities (¥632.7B).

Long Term Liabilities: 5201's short term assets (¥980.1B) exceed its long term liabilities (¥685.2B).


Debt to Equity History and Analysis

Debt Level: 5201's debt to equity ratio (82.3%) is considered high.

Reducing Debt: 5201's debt to equity ratio has increased from 47.6% to 82.3% over the past 5 years.

Debt Coverage: 5201's debt is well covered by operating cash flow (20.1%).

Interest Coverage: 5201's interest payments on its debt are well covered by EBIT (213.5x coverage).


Balance Sheet


Next Steps

Dividend

What is AGC current dividend yield, its reliability and sustainability?

3.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5201's dividend (3.65%) is higher than the bottom 25% of dividend payers in the JP market (1.33%).

High Dividend: 5201's dividend (3.65%) is in the top 25% of dividend payers in the JP market (3.19%)


Stability and Growth of Payments

Stable Dividend: 5201's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5201's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (112.6%), 5201's dividend payments are not well 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?

4.3yrs

Average management tenure


CEO

Takuya Shimamura (64 yo)

5.75yrs

Tenure

JP¥209,000,000

Compensation

Mr. Takuya Shimamura has been the Chief Executive Officer and President of Asahi Glass Co. Ltd., since January 1, 2015. Mr. Shimamura served as Senior Executive Officer and President of Electronics Company ...


CEO Compensation Analysis

Compensation vs Market: Takuya's total compensation ($USD1.98M) is about average for companies of similar size in the JP market ($USD1.57M).

Compensation vs Earnings: Takuya's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Takuya Shimamura
President5.75yrsJP¥209.00m0.0057%
¥ 41.7m
Shinji Miyaji
Senior EVP5.58yrsno data0.0026%
¥ 19.0m
Yoshinori Hirai
Executive VP6.58yrsno data0.0032%
¥ 23.6m
Junichi Kobayashi
General Manager of Legal Div. & General Affairs Div.3.75yrsno datano data
Takashi Misu
Senior Executive Officer & GM of Human Resources Division4.75yrsno datano data
Jean-François Heris
Senior Executive Officer & President of Building & Industrial Glass Companyno datano datano data
Toshihiro Ueda
Executive Officer & Chief Representative of AGC Group for China3.75yrsno datano data
Yoshinori Kobayashi
Senior Executive Officer & President of Automotive Companyno datano datano data
Masao Nemoto
Executive VP & President of Chemicals Companyno datano datano data
Kenzo Moriyama
Senior Executive Officer & President of Electronics Companyno datano datano data
Hideyuki Kurata
Senior Executive Officer & GM of Technology General Divisionno datano datano data
Katsufumi Yajima
Executive Officer & Senior VP of Automotive Companyno datano datano data

4.3yrs

Average Tenure

62.5yo

Average Age

Experienced Management: 5201's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Takuya Shimamura
President5.75yrsJP¥209.00m0.0057%
¥ 41.7m
Shinji Miyaji
Senior EVP5.58yrsno data0.0026%
¥ 19.0m
Yoshinori Hirai
Executive VP6.58yrsno data0.0032%
¥ 23.6m
Yasuchika Hasegawa
Independent Chairman0.75yrno data0.0022%
¥ 15.8m
Akio Sakumiya
Audit & Supervisory Board Member2.58yrsno data0.000090%
¥ 654.3k
Hiroyuki Yanagi
Independent Director1.58yrsno data0.00023%
¥ 1.7m
Kazuhiko Ishimura
Director12.58yrsJP¥156.00m0.013%
¥ 97.9m
Tetsuo Tatsuno
Chairman of Audit & Supervisory Board2.75yrsno data0.0021%
¥ 15.1m
Yoshiyuki Morimoto
Full Time Audit & Supervisory Board Member1.58yrsno data0.000050%
¥ 363.5k
Keiko Honda
Independent Director0.75yrno datano data
Yaeko Takeoka
Audit & Supervisory Board Member1.58yrsno datano data

2.6yrs

Average Tenure

64yo

Average Age

Experienced Board: 5201's board of directors are not considered experienced ( 2.6 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.


Top Shareholders

Company Information

AGC Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AGC Inc.
  • Ticker: 5201
  • Exchange: TSE
  • Founded: 1907
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: JP¥726.996b
  • Shares outstanding: 221.31m
  • Website: https://www.agc.com

Number of Employees


Location

  • AGC Inc.
  • 1-5-1, Marunouchi
  • Chiyoda-ku
  • Tokyo
  • 100-8405
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASGL.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 1975
5201TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1975
ASGL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
SHJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975

Biography

AGC Inc. manufactures and sells glass, electronics, chemicals, and ceramics worldwide. The company offers architectural glass products, including laminated, insulating, wired, solar control, toughened, dec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 14:39
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.