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5393

Nichias TSE:5393 Stock Report

Last Price

JP¥2.26k

Market Cap

JP¥149.6b

7D

-1.0%

1Y

-20.0%

Updated

30 Jun, 2022

Data

Company Financials +
5393 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends6/6

5393 Stock Overview

Nichias Corporation manufactures and sells thermal insulation materials primarily in Japan.

Nichias Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nichias
Historical stock prices
Current Share PriceJP¥2,256.00
52 Week HighJP¥3,090.00
52 Week LowJP¥2,091.00
Beta1.18
1 Month Change-2.04%
3 Month Change-11.94%
1 Year Change-20.03%
3 Year Change12.46%
5 Year Change-15.19%
Change since IPO54.52%

Recent News & Updates

Shareholder Returns

5393JP BuildingJP Market
7D-1.0%4.3%2.3%
1Y-20.0%-1.7%-3.9%

Return vs Industry: 5393 underperformed the JP Building industry which returned -1.7% over the past year.

Return vs Market: 5393 underperformed the JP Market which returned -3.9% over the past year.

Price Volatility

Is 5393's price volatile compared to industry and market?
5393 volatility
5393 Average Weekly Movement3.4%
Building Industry Average Movement3.5%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.4%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 5393 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 5393's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18966,337Toshiyuki Takeihttps://www.nichias.co.jp

Nichias Corporation manufactures and sells thermal insulation materials primarily in Japan. It operates in five segments: Energy and Industrial Plants, Industrial Products, Advanced Products, Autoparts, and Building Materials. The company offers gaskets and packings, including non-asbestos gaskets and packings, rubber type gaskets, other seal products, and peripheral function materials; and thermal insulation materials, such as fiber products, high performance thermal insulation materials, heat-insulation boards, and cryogenic insulation materials, as well as thermal insulation materials for molten aluminum.

Nichias Fundamentals Summary

How do Nichias's earnings and revenue compare to its market cap?
5393 fundamental statistics
Market CapJP¥149.65b
Earnings (TTM)JP¥22.03b
Revenue (TTM)JP¥216.24b

6.8x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
5393 income statement (TTM)
RevenueJP¥216.24b
Cost of RevenueJP¥162.86b
Gross ProfitJP¥53.38b
Other ExpensesJP¥31.35b
EarningsJP¥22.03b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)332.17
Gross Margin24.69%
Net Profit Margin10.19%
Debt/Equity Ratio15.3%

How did 5393 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

26%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 5393 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5393?

Other financial metrics that can be useful for relative valuation.

5393 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA3.7x
PEG Ratio-4.3x

Price to Earnings Ratio vs Peers

How does 5393's PE Ratio compare to its peers?

5393 PE Ratio vs Peers
The above table shows the PE ratio for 5393 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.2x
7943 Nichiha
9.5x6.2%JP¥96.7b
1969 Takasago Thermal Engineering
9.2x-1.2%JP¥106.6b
3110 Nitto Boseki
13.8x8.5%JP¥89.9b
7981 Takara StandardLtd
8.4xn/aJP¥91.4b
5393 Nichias
6.8x-1.6%JP¥149.6b

Price-To-Earnings vs Peers: 5393 is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (10.2x).


Price to Earnings Ratio vs Industry

How does 5393's PE Ratio compare vs other companies in the JP Building Industry?

Price-To-Earnings vs Industry: 5393 is good value based on its Price-To-Earnings Ratio (6.8x) compared to the JP Building industry average (10.5x)


Price to Earnings Ratio vs Fair Ratio

What is 5393's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5393 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ratio9.7x

Price-To-Earnings vs Fair Ratio: 5393 is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.7x).


Share Price vs Fair Value

What is the Fair Price of 5393 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5393 (¥2256) is trading below our estimate of fair value (¥3870.94)

Significantly Below Fair Value: 5393 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 5393's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Nichias forecast to perform in the next 1 to 3 years based on estimates from 3 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


-1.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5393's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: 5393's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: 5393's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 5393's revenue (3% per year) is forecast to grow slower than the JP market (4.4% per year).

High Growth Revenue: 5393's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5393's Return on Equity is forecast to be low in 3 years time (11%).


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Past Performance

How has Nichias performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5393 has high quality earnings.

Growing Profit Margin: 5393's current net profit margins (10.2%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: 5393's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: 5393's earnings growth over the past year (105.6%) exceeds its 5-year average (2.1% per year).

Earnings vs Industry: 5393 earnings growth over the past year (105.6%) exceeded the Building industry 1.5%.


Return on Equity

High ROE: 5393's Return on Equity (14.3%) is considered low.


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Financial Health

How is Nichias'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: 5393's short term assets (¥159.4B) exceed its short term liabilities (¥67.7B).

Long Term Liabilities: 5393's short term assets (¥159.4B) exceed its long term liabilities (¥23.7B).


Debt to Equity History and Analysis

Debt Level: 5393 has more cash than its total debt.

Reducing Debt: 5393's debt to equity ratio has reduced from 23.5% to 15.3% over the past 5 years.

Debt Coverage: 5393's debt is well covered by operating cash flow (105.5%).

Interest Coverage: 5393 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5393's dividend (3.9%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 5393's dividend (3.9%) is in the top 25% of dividend payers in the JP market (3.67%)


Stability and Growth of Payments

Stable Dividend: 5393's dividends per share have been stable in the past 10 years.

Growing Dividend: 5393's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.9%), 5393's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.7%), 5393's dividend payments are well covered by cash flows.


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Management

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

6.2yrs

Average management tenure


CEO

Toshiyuki Takei (65 yo)

8yrs

Tenure

Mr. Toshiyuki Takei has been the President at Nichias Corporation since June 2014 and its Chief Executive Officer since June 29, 2017. Mr. Takei served as Senior Managing Executive Officer of Nichias Corp...


Leadership Team

Experienced Management: 5393's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: 5393's board of directors are considered experienced (6 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

Nichias Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Nichias Corporation
  • Ticker: 5393
  • Exchange: TSE
  • Founded: 1896
  • Industry: Building Products
  • Sector: Capital Goods
  • Implied Market Cap: JP¥149.647b
  • Shares outstanding: 66.33m
  • Website: https://www.nichias.co.jp

Number of Employees


Location

  • Nichias Corporation
  • 6-1, Hatchobori 1-chome
  • Chuo-ku
  • Tokyo
  • 104-8555
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.