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7624

Naito TSE:7624 Stock Report

Last Price

JP¥171.00

Market Cap

JP¥9.4b

7D

-3.9%

1Y

-7.6%

Updated

30 Jun, 2022

Data

Company Financials
7624 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends3/6

7624 Stock Overview

Naito & Co., Ltd., a trading company, sells cutting tools, mechanical tools, industrial devices, machine tools, and other products in Japan and internationally.

Naito Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Naito
Historical stock prices
Current Share PriceJP¥171.00
52 Week HighJP¥204.00
52 Week LowJP¥157.00
Beta0.88
1 Month Change1.18%
3 Month Change0%
1 Year Change-7.57%
3 Year Change-25.00%
5 Year Change-12.76%
Change since IPO-87.46%

Recent News & Updates

Shareholder Returns

7624JP Trade DistributorsJP Market
7D-3.9%3.3%2.3%
1Y-7.6%16.3%-3.9%

Return vs Industry: 7624 underperformed the JP Trade Distributors industry which returned 16.3% over the past year.

Return vs Market: 7624 underperformed the JP Market which returned -3.9% over the past year.

Price Volatility

Is 7624's price volatile compared to industry and market?
7624 volatility
7624 Average Weekly Movement2.1%
Trade Distributors Industry Average Movement3.6%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.4%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 7624 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 7624's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1945336Shunji Sakaihttps://www.naito.net

Naito & Co., Ltd., a trading company, sells cutting tools, mechanical tools, industrial devices, machine tools, and other products in Japan and internationally. The company’s cutting tools include carbide tools, special steel tools, abrasives, and diamond tools; and measurement devices comprise 3D measuring machines, shape measuring devices, optical measurement devices, torque machines, various test equipment, foreign object detectors, and others, as well as vernier calipers, micrometers, dial gauges, and gauges. Its industrial devices consists of tooling products, complementary tools, pneumatic equipment, hydraulic equipment, environmental equipment, and working tools; and machine tools comprise lathes, milling machines, machining centers, grinding machines, electric discharge machines, robots, and CAD/CAM systems.

Naito Fundamentals Summary

How do Naito's earnings and revenue compare to its market cap?
7624 fundamental statistics
Market CapJP¥9.36b
Earnings (TTM)JP¥378.00m
Revenue (TTM)JP¥43.83b

24.8x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7624 income statement (TTM)
RevenueJP¥43.83b
Cost of RevenueJP¥38.92b
Gross ProfitJP¥4.91b
Other ExpensesJP¥4.53b
EarningsJP¥378.00m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.90
Gross Margin11.20%
Net Profit Margin0.86%
Debt/Equity Ratio10.1%

How did 7624 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

43%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 7624 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 7624?

Other financial metrics that can be useful for relative valuation.

7624 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/Revenue0.2x
Enterprise Value/EBITDA15.7x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 7624's PE Ratio compare to its peers?

7624 PE Ratio vs Peers
The above table shows the PE ratio for 7624 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.8x
8085 Narasaki Sangyo
5.6xn/aJP¥8.8b
8007 Takashima
9xn/aJP¥11.6b
8076 Canox
6.1xn/aJP¥11.6b
7417 NANYO
6.5xn/aJP¥11.2b
7624 Naito
24.8xn/aJP¥9.4b

Price-To-Earnings vs Peers: 7624 is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (6.8x).


Price to Earnings Ratio vs Industry

How does 7624's PE Ratio compare vs other companies in the JP Trade Distributors Industry?

Price-To-Earnings vs Industry: 7624 is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the JP Trade Distributors industry average (8x)


Price to Earnings Ratio vs Fair Ratio

What is 7624'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.

7624 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7624's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 7624 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7624 (¥171) is trading above our estimate of fair value (¥42.1)

Significantly Below Fair Value: 7624 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7624's PEG Ratio to determine if it is good value.


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Future Growth

How is Naito forecast to perform in the next 1 to 3 years based on estimates from 0 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


-3.5%

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 Naito 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.


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  • Examine Naito's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Naito performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7624 has high quality earnings.

Growing Profit Margin: 7624's current net profit margins (0.9%) are lower than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: 7624's earnings have declined by 10.2% per year over the past 5 years.

Accelerating Growth: 7624's earnings growth over the past year (1.9%) exceeds its 5-year average (-10.2% per year).

Earnings vs Industry: 7624 earnings growth over the past year (1.9%) underperformed the Trade Distributors industry 36%.


Return on Equity

High ROE: 7624's Return on Equity (3.1%) is considered low.


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Financial Health

How is Naito's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7624's short term assets (¥14.5B) exceed its short term liabilities (¥5.4B).

Long Term Liabilities: 7624's short term assets (¥14.5B) exceed its long term liabilities (¥121.0M).


Debt to Equity History and Analysis

Debt Level: 7624's net debt to equity ratio (8.4%) is considered satisfactory.

Reducing Debt: 7624's debt to equity ratio has reduced from 14.6% to 10.1% over the past 5 years.

Debt Coverage: 7624's debt is not well covered by operating cash flow (7.5%).

Interest Coverage: 7624 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7624's dividend (1.75%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 7624's dividend (1.75%) is low compared to the top 25% of dividend payers in the JP market (3.67%).


Stability and Growth of Payments

Stable Dividend: 7624's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7624's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.5%), 7624's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 7624 is paying a dividend but the company has no free cash flows.


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Management

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

8.1yrs

Average management tenure


CEO

Shunji Sakai (58 yo)

8.08yrs

Tenure

Mr. Shunji Sakai has been Manager of Mechatronics, Tokyo Head Branch since March 2010. Shunji Sakai Joined Okaya & Co., Ltd. in April 1987.Mr. Sakai has been the President and Representative Directorof Na...


Leadership Team

Experienced Management: 7624's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: 7624's board of directors are seasoned and experienced ( 10.1 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

Naito & Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Naito & Co., Ltd.
  • Ticker: 7624
  • Exchange: TSE
  • Founded: 1945
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: JP¥9.364b
  • Shares outstanding: 54.76m
  • Website: https://www.naito.net

Number of Employees


Location

  • Naito & Co., Ltd.
  • 2-1-11 Showa-machi
  • Kita-ku
  • Tokyo
  • 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
Earnings2022/05/31
Annual Earnings2022/02/28


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.