TSE:8015

Stock Analysis Report

Executive Summary

Toyota Tsusho Corporation engages in metals, parts and logistics, automotive, machinery, energy and project, chemicals and electronics, and food and consumer services businesses worldwide.

Rewards

Trading at 2.2% below its fair value

Earnings are forecast to grow 3.93% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8015 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

8015

0.6%

JP Trade Distributors

-0.3%

JP Market


1 Year Return

12.0%

8015

6.4%

JP Trade Distributors

11.0%

JP Market

Return vs Industry: 8015 exceeded the JP Trade Distributors industry which returned 7.5% over the past year.

Return vs Market: 8015 exceeded the JP Market which returned 11% over the past year.


Shareholder returns

8015IndustryMarket
7 Day1.6%0.6%-0.3%
30 Day-0.1%0.1%0.04%
90 Day6.7%6.1%5.0%
1 Year15.4%12.0%10.8%6.4%13.8%11.0%
3 Year32.4%22.3%38.3%24.1%21.4%13.2%
5 Year57.9%39.4%77.6%49.6%40.1%25.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8015 (¥3795) is trading below our estimate of fair value (¥3879.36)

Significantly Below Fair Value: 8015 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 8015 is poor value based on its PE Ratio (10.4x) compared to the Trade Distributors industry average (10.1x).

PE vs Market: 8015 is good value based on its PE Ratio (10x) compared to the JP market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: 8015 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 8015 is overvalued based on its PB Ratio (1.1x) compared to the JP Trade Distributors industry average (0.7x).


Next Steps

Future Growth

How is Toyota Tsusho forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8015's forecast earnings growth (3.9% per year) is above the savings rate (-0.09%).

Earnings vs Market: 8015's earnings (3.9% per year) are forecast to grow slower than the JP market (9.5% per year).

High Growth Earnings: 8015's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8015's revenue (1.9% per year) is forecast to grow slower than the JP market (3.7% per year).

High Growth Revenue: 8015's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8015's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Toyota Tsusho performed over the past 5 years?

27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8015 has high quality earnings.

Growing Profit Margin: 8015's current net profit margins (2%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 8015's earnings have grown significantly by 27.4% per year over the past 5 years.

Accelerating Growth: 8015's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8015 had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Trade Distributors industry average (-1.8%).


Return on Equity

High ROE: 8015's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Toyota Tsusho's financial position?


Financial Position Analysis

Short Term Liabilities: 8015's short term assets (¥2,780.9B) exceed its short term liabilities (¥1,825.2B).

Long Term Liabilities: 8015's short term assets (¥2,780.9B) exceed its long term liabilities (¥1,290.9B).


Debt to Equity History and Analysis

Debt Level: 8015's debt to equity ratio (109.2%) is considered high.

Reducing Debt: 8015's debt to equity ratio has reduced from 125.8% to 109.2% over the past 5 years.

Debt Coverage: 8015's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: 8015 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8015 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8015's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

3.06%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Toyota Tsusho before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.1%marketbottom25%1.3%markettop25%3.0%industryaverage3.7%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: 8015's dividend (3.16%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 8015's dividend (3.16%) is in the top 25% of dividend payers in the JP market (2.94%)


Stability and Growth of Payments

Stable Dividend: 8015's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8015's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.1%), 8015's dividend payments are 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

What is the CEO of Toyota Tsusho's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Ichiro Kashitani (60yo)

1.8yrs

Tenure

JP¥109,000,000

Compensation

Mr. Ichiro Kashitani has been President and Chief Executive Officer of Toyota Tsusho Corporation since April 1, 2018 and serves as its Representative Director since June 21, 2018. Mr. Kashitani was the Chi ...


CEO Compensation Analysis

Compensation vs Market: Ichiro's total compensation ($USD990.06K) is below average for companies of similar size in the JP market ($USD1.77M).

Compensation vs Earnings: Insufficient data to compare Ichiro's compensation with company performance.


Management Age and Tenure

1.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 8015's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: 8015's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Minoru Murata (64yo)

    Executive VP

    • Tenure: 2.8yrs
  • Shizuka Hayashi

    CEO for Asia & Oceania Region

    • Tenure: 1yrs
  • Hideki Yanase (63yo)

    Executive VP

    • Tenure: 0.6yrs
  • Takahiro Kondo

    CEO for East Asia Region

    • Tenure: 1.8yrs
  • Yasuhiro Nagai (59yo)

    Chief Compliance Officer

    • Tenure: 2.6yrs
  • Yoshihiro Inoue

    Division COO of Machinery

    • Tenure: 7.8yrs
  • Ichiro Kashitani (60yo)

    President

    • Tenure: 1.8yrs
    • Compensation: JP¥109.00m
  • Mitsuhiro Tsubakimoto

    Division Chief Executive Officer for Chemicals & Electronics Division

    • Hiroshi Tominaga (56yo)

      Chief Strategy Officer

      • Tenure: 2.6yrs
    • Hideyuki Iwamoto (56yo)

      CFO & Director

      • Tenure: 2.6yrs

    Board Members

    • Kumi Fujisawa (52yo)

      Outside Director

      • Tenure: 5.6yrs
    • Jun Karube (66yo)

      Chairman of the Board

      • Tenure: 1.8yrs
      • Compensation: JP¥120.00m
    • Didier Leroy (62yo)

      Outside Director

      • Tenure: 1.6yrs
    • Minoru Murata (64yo)

      Executive VP

      • Tenure: 2.8yrs
    • Hideki Yanase (63yo)

      Executive VP

      • Tenure: 0.6yrs
    • Yasuhiro Nagai (59yo)

      Chief Compliance Officer

      • Tenure: 2.6yrs
    • Ichiro Kashitani (60yo)

      President

      • Tenure: 1.8yrs
      • Compensation: JP¥109.00m
    • Hiroshi Tominaga (56yo)

      Chief Strategy Officer

      • Tenure: 2.6yrs
    • Hideyuki Iwamoto (56yo)

      CFO & Director

      • Tenure: 2.6yrs
    • Yoriko Kawaguchi (78yo)

      Outside Director

      • Tenure: 5.6yrs

    Company Information

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


    Key Information

    • Name: Toyota Tsusho Corporation
    • Ticker: 8015
    • Exchange: TSE
    • Founded: 1948
    • Industry: Trading Companies and Distributors
    • Sector: Capital Goods
    • Market Cap: JP¥1.379t
    • Shares outstanding: 351.85m
    • Website: https://www.toyota-tsusho.com

    Number of Employees


    Location

    • Toyota Tsusho Corporation
    • 9-8, Meieki 4-chome
    • Nakamura-ku
    • Nagoya
    • Aichi
    • 450-8575
    • Japan

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    8015TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
    TYHO.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
    9TODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

    Biography

    Toyota Tsusho Corporation engages in metals, parts and logistics, automotive, machinery, energy and project, chemicals and electronics, and food and consumer services businesses worldwide. It manufactures steel products, steel construction materials, non-ferrous metal ingots, precious metals, aluminum products, copper and ferro alloy products, waste catalysts, and rare earth resources and metals; and iron, steel, and nonferrous metals scraps, as well as recycles vehicles and auto parts. The company also offers component parts for automotive production; runs logistics and tire assembly business; and sells passenger, commercial, and light vehicles, as well as motorcycles, trucks, buses, and automotive parts. In addition, it sells machine tools, testing and measuring instruments; medical and environmental equipment; construction, industrial, and textile machinery; and coal, crude oil, natural gas, petroleum products, and liquefied petroleum gas; and undertakes infrastructure and water treatment projects, as well as runs energy and electric power supply business. Further, the company offers semiconductors, plastics and rubber products, modular products, batteries and electronic materials, electronic equipment, specialty and inorganic chemicals, fat and oil products, chemical additives, and pharmaceuticals and pharmaceutical ingredients; PCs, and PC peripherals and software; and automotive embedded software development, and network integration and support services. Additionally, it manufactures agricultural, marine, and livestock products; feed and oilseeds; grains, processed foods, and food ingredients; and alcoholic beverages. The company sells construction and housing materials, furniture, textile products, and apparel; and life, property, and casualty insurance, as well as offer securities brokerage services. It also develops nursing care facilities; and operates general hospitals and hotels. The company was founded in 1948 and is headquartered in Nagoya, Japan. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 14:46
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    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.