TSE:5943

Stock Analysis Report

Executive Summary

Noritz Corporation develops, manufactures, and sells various water heaters worldwide.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 5943's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.8%

5943

-9.4%

JP Building

-8.9%

JP Market


1 Year Return

-38.4%

5943

-15.1%

JP Building

-17.9%

JP Market

Return vs Industry: 5943 underperformed the JP Building industry which returned -13.6% over the past year.

Return vs Market: 5943 underperformed the JP Market which returned -15.7% over the past year.


Shareholder returns

5943IndustryMarket
7 Day-12.8%-9.4%-8.9%
30 Day-4.5%-12.4%-12.1%
90 Day-24.6%-23.3%-22.9%
1 Year-36.9%-38.4%-13.2%-15.1%-15.7%-17.9%
3 Year-43.3%-46.5%-3.2%-9.0%-3.7%-10.5%
5 Year-38.2%-43.5%17.8%6.4%-3.5%-14.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

34.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5943 (¥1088) is trading above our estimate of fair value (¥914.7)

Significantly Below Fair Value: 5943 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5943 is poor value based on its PE Ratio (34.3x) compared to the Building industry average (10.5x).

PE vs Market: 5943 is poor value based on its PE Ratio (34.3x) compared to the JP market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: 5943 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 5943 is good value based on its PB Ratio (0.5x) compared to the JP Building industry average (0.6x).


Next Steps

Future Growth

How is Noritz forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5943's forecast earnings growth (23.1% per year) is above the savings rate (-0.09%).

Earnings vs Market: 5943's earnings (23.1% per year) are forecast to grow faster than the JP market (9.1% per year).

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

Revenue vs Market: 5943's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: 5943's revenue is forecast to decline over the next 3 years (-2.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5943's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Noritz performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5943 has high quality earnings.

Growing Profit Margin: 5943's current net profit margins (0.7%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 5943's earnings have grown significantly by 26.3% per year over the past 5 years.

Accelerating Growth: 5943's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5943 had negative earnings growth (-73.8%) over the past year, making it difficult to compare to the Building industry average (10.8%).


Return on Equity

High ROE: 5943's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is Noritz's financial position?


Financial Position Analysis

Short Term Liabilities: 5943's short term assets (¥117.9B) exceed its short term liabilities (¥63.2B).

Long Term Liabilities: 5943's short term assets (¥117.9B) exceed its long term liabilities (¥21.3B).


Debt to Equity History and Analysis

Debt Level: 5943's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: 5943's debt to equity ratio has reduced from 1.5% to 1.1% over the past 5 years.

Debt Coverage: 5943's debt is well covered by operating cash flow (490.3%).

Interest Coverage: 5943 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 5943 has a high level of physical assets or inventory.

Debt Coverage by Assets: 5943's debt is covered by short term assets (assets are 94.2x debt).


Next Steps

Dividend

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

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5943's dividend (2.94%) is higher than the bottom 25% of dividend payers in the JP market (1.73%).

High Dividend: 5943's dividend (2.94%) is low compared to the top 25% of dividend payers in the JP market (4%).


Stability and Growth of Payments

Stable Dividend: 5943's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5943's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.8%), 5943'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?

3.1yrs

Average management tenure


CEO

Soichiro Kokui (66yo)

10.58s

Tenure

Mr. Soichiro Kokui has been the President and Chief Executive Officer of Noritz Corporation since September 2009. Mr. Kokui joined Noritz Corporation in April 1976 and served as its Representative Executiv ...


Leadership Team

NamePositionTenureCompensationOwnership
Soichiro Kokui
President10.58yrsno data0.072% ¥37.4m
Kazushi Hirooka
Managing Executive Officer2.58yrsno datano data
Satoshi Haramaki
Director & Senior Managing Executive Officerno datano datano data
Masamine Hirosawa
Director & Senior Managing Executive Officer3.08yrsno data0.011% ¥5.5m
Masayuki Takenaka
Head of Administration Headquarters3.08yrsno data0.0064% ¥3.3m
Norio Kubota
Managing Executive Officerno datano datano data
Masanori Higashiuchi
Managing Executive Officerno datano datano data
Masashi Kyunai
Managing Executive Officerno datano datano data
Hisashi Hisauchi
Executive Officerno datano datano data
Takashi Inoue
Managing Executive Officerno datano datano data

3.1yrs

Average Tenure

Experienced Management: 5943's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Soichiro Kokui
President10.58yrsno data0.072% ¥37.4m
Satoshi Haramaki
Director & Senior Managing Executive Officerno datano datano data
Masamine Hirosawa
Director & Senior Managing Executive Officer3.08yrsno data0.011% ¥5.5m
Masayuki Takenaka
Head of Administration Headquarters3.08yrsno data0.0064% ¥3.3m
Hideaki Takahashi
External Director4.08yrsno datano data
Yasuhiko Ogawa
Outside Director7.08yrsno datano data
Tsuyoshi Ayabe
Directorno datano data0.0043% ¥2.2m
Yasuko Masaki
Outside Directorno datano datano data

4.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 5943's board of directors are considered experienced (4.1 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

Noritz Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Noritz Corporation
  • Ticker: 5943
  • Exchange: TSE
  • Founded: 1951
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: JP¥51.692b
  • Shares outstanding: 46.86m
  • Website: https://www.noritzglobal.com

Number of Employees


Location

  • Noritz Corporation
  • Eiko Building
  • 93 Edo-machi
  • Kobe
  • Hyogo
  • 650-0033
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5943TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NRTZ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992

Biography

Noritz Corporation develops, manufactures, and sells various water heaters worldwide. The company offers water heaters, hydronic heating systems, gas fan heaters, and gas co-generation systems; water tank units for use with fuel cells; solar water heaters; photovoltaic power generation systems for industry use; built-in bath and kitchen systems, and wash basins; and built-in gas cookers and gas table cookers. Noritz Corporation was founded in 1951 and is headquartered in Kobe, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 17:13
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.