TSE:5201

Stock Analysis Report

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Market Cap

JP¥1.1t

Last Updated

2021/06/11 09:13 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet.


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

Volatility Over Time: 5201's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

5201

-2.2%

JP Building

0.05%

JP Market


1 Year Return

47.7%

5201

26.6%

JP Building

22.9%

JP Market

Return vs Industry: 5201 exceeded the JP Building industry which returned 26.6% over the past year.

Return vs Market: 5201 exceeded the JP Market which returned 22.9% over the past year.


Shareholder returns

5201IndustryMarket
7 Day-0.8%-2.2%0.05%
30 Day-3.4%-2.1%3.8%
90 Day10.3%-7.9%0.1%
1 Year53.0%47.7%28.6%26.6%25.6%22.9%
3 Year17.5%6.5%31.6%24.0%16.8%8.8%
5 Year91.4%65.1%106.2%87.5%72.8%53.8%

Long-Term 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?

22.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 5201 (¥4845) is trading below our estimate of fair value (¥6164.8)

Significantly Below Fair Value: 5201 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 5201 is poor value based on its PE Ratio (22.3x) compared to the JP Building industry average (12.7x).

PE vs Market: 5201 is poor value based on its PE Ratio (22.3x) compared to the JP market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: 5201 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 5201 is overvalued based on its PB Ratio (0.9x) compared to the JP Building industry average (0.8x).


Future Growth

How is AGC forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5201's forecast earnings growth (9.9% per year) is above the savings rate (0%).

Earnings vs Market: 5201's earnings (9.9% per year) are forecast to grow slower than the JP market (13.3% per year).

High Growth Earnings: 5201's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5201's revenue (2.8% per year) is forecast to grow slower than the JP market (5.3% per year).

High Growth Revenue: 5201's revenue (2.8% 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 (8.5%).


Past Performance

How has AGC performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5201 has high quality earnings.

Growing Profit Margin: 5201's current net profit margins (3.3%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 5201's earnings have declined by 4.1% per year over the past 5 years.

Accelerating Growth: 5201's earnings growth over the past year (13.3%) exceeds its 5-year average (-4.1% per year).

Earnings vs Industry: 5201 earnings growth over the past year (13.3%) exceeded the Building industry -7%.


Return on Equity

High ROE: 5201's Return on Equity (4.7%) is considered low.


Financial Health

How is AGC's financial position?


Financial Position Analysis

Short Term Liabilities: 5201's short term assets (¥905.4B) exceed its short term liabilities (¥592.3B).

Long Term Liabilities: 5201's short term assets (¥905.4B) exceed its long term liabilities (¥737.3B).


Debt to Equity History and Analysis

Debt Level: 5201's debt to equity ratio (70%) is considered high.

Reducing Debt: 5201's debt to equity ratio has increased from 50.7% to 70% over the past 5 years.

Debt Coverage: 5201's debt is well covered by operating cash flow (27.2%).

Interest Coverage: 5201's interest payments on its debt are well covered by EBIT (59x coverage).


Balance Sheet


Dividend

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

2.48%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 11 2021Ex Dividend DateJun 29 2021Dividend Pay DateSep 08 202171 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 5201's dividend (2.48%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 5201's dividend (2.48%) is low compared to the top 25% of dividend payers in the JP market (2.98%).


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.3%), 5201'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?

2.4yrs

Average management tenure


CEO

Yoshinori Hirai (61 yo)

0.42

Tenure

Mr. Yoshinori Hirai has served as a President and Chief Executive Officer of AGC Inc. since January 1, 2021. He has served as an Executive Vice President of AGC Inc., since January 2018 to January 1, 2021 ...


Leadership Team

Experienced Management: 5201's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: 5201's board of directors are not considered experienced ( 2.3 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¥1.072t
  • Shares outstanding: 221.35m
  • Website: https://www.agc.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/11 09:13
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.