4489

Payroll TSE:4489 Stock Report

Last Price

JP¥708.00

Market Cap

JP¥12.7b

7D

-1.7%

1Y

-21.3%

Updated

03 Oct, 2022

Data

Company Financials
4489 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends2/6

4489 Stock Overview

Payroll Inc. provides payroll outsourcing services in Japan.

Payroll Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Payroll
Historical stock prices
Current Share PriceJP¥708.00
52 Week HighJP¥1,115.00
52 Week LowJP¥663.00
Beta0
1 Month Change-2.21%
3 Month Change1.58%
1 Year Change-21.33%
3 Year Changen/a
5 Year Changen/a
Change since IPO-42.06%

Recent News & Updates

Shareholder Returns

4489JP Professional ServicesJP Market
7D-1.7%-0.6%-3.9%
1Y-21.3%-33.3%-8.2%

Return vs Industry: 4489 exceeded the JP Professional Services industry which returned -33.3% over the past year.

Return vs Market: 4489 underperformed the JP Market which returned -8.2% over the past year.

Price Volatility

Is 4489's price volatile compared to industry and market?
4489 volatility
4489 Average Weekly Movement3.7%
Professional Services Industry Average Movement5.0%
Market Average Movement3.5%
10% most volatile stocks in JP Market7.4%
10% least volatile stocks in JP Market1.8%

Stable Share Price: 4489 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 4489's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989561Tetsuya Yuasahttps://www.payroll.co.jp

Payroll Inc. provides payroll outsourcing services in Japan. The company was founded in 1989 and is headquartered in Tokyo, Japan.

Payroll Fundamentals Summary

How do Payroll's earnings and revenue compare to its market cap?
4489 fundamental statistics
Market CapJP¥12.72b
Earnings (TTM)JP¥1.03b
Revenue (TTM)JP¥8.38b

12.3x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
4489 income statement (TTM)
RevenueJP¥8.38b
Cost of RevenueJP¥5.90b
Gross ProfitJP¥2.48b
Other ExpensesJP¥1.45b
EarningsJP¥1.03b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 11, 2022

Earnings per share (EPS)57.50
Gross Margin29.60%
Net Profit Margin12.32%
Debt/Equity Ratio41.0%

How did 4489 perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 4489 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4489?

Other financial metrics that can be useful for relative valuation.

4489 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/Revenue2.1x
Enterprise Value/EBITDA7.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 4489's PE Ratio compare to its peers?

4489 PE Ratio vs Peers
The above table shows the PE ratio for 4489 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.6x
7352 Branding EngineerLTD
97xn/aJP¥11.8b
2163 ArtnerLtd
13.1xn/aJP¥10.3b
7089 for Startups
22.2x16.4%JP¥10.2b
2415 Human Holdings
6.1xn/aJP¥9.5b
4489 Payroll
12.3xn/aJP¥12.7b

Price-To-Earnings vs Peers: 4489 is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (34.6x).


Price to Earnings Ratio vs Industry

How does 4489's PE Ratio compare vs other companies in the JP Professional Services Industry?

Price-To-Earnings vs Industry: 4489 is good value based on its Price-To-Earnings Ratio (12.3x) compared to the JP Professional Services industry average (18.3x)


Price to Earnings Ratio vs Fair Ratio

What is 4489'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.

4489 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 4489's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 4489 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4489 (¥708) is trading below our estimate of fair value (¥2916.37)

Significantly Below Fair Value: 4489 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Payroll 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


18.4%

Forecasted Commercial Services 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 Payroll 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.


Discover growth companies

  • Examine whether Payroll is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Payroll 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


14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 4489 has high quality earnings.

Growing Profit Margin: 4489's current net profit margins (12.3%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: 4489's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 4489's earnings growth over the past year (29.4%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: 4489 earnings growth over the past year (29.4%) exceeded the Professional Services industry 28.7%.


Return on Equity

High ROE: 4489's Return on Equity (8.4%) is considered low.


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Financial Health

How is Payroll's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 4489's short term assets (¥3.1B) do not cover its short term liabilities (¥3.4B).

Long Term Liabilities: 4489's short term assets (¥3.1B) do not cover its long term liabilities (¥6.1B).


Debt to Equity History and Analysis

Debt Level: 4489's net debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 4489's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 4489's debt is well covered by operating cash flow (41.1%).

Interest Coverage: 4489's interest payments on its debt are well covered by EBIT (22x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.41%

Current Dividend Yield

Dividend Yield vs Market

Payroll Dividend Yield vs Market
How does Payroll dividend yield compare to the market?
SegmentDividend Yield
Company (Payroll)1.4%
Market Bottom 25% (JP)1.7%
Market Top 25% (JP)3.8%
Industry Average (Professional Services)1.1%
Analyst forecast in 3 Years (Payroll)n/a

Notable Dividend: 4489's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 4489's dividend (1.41%) is low compared to the top 25% of dividend payers in the JP market (3.76%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 4489's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 4489's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.7%), 4489's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (15%), 4489's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

0.3yrs

Average board tenure


CEO

Tetsuya Yuasa

no data

Tenure

Mr. Tetsuya Yuasa serves as the President, CEO and Director at Payroll Inc.


Board Members

Experienced Board: 4489's board of directors are not considered experienced ( 0.3 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

What is the ownership structure of 4489?
Owner TypeNumber of SharesOwnership Percentage
Institutions308,8001.7%
Employee Share Scheme477,5032.7%
Individual Insiders688,2843.8%
Public Companies1,000,0005.6%
General Public4,372,41424.3%
VC/PE Firms11,117,10061.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 17 shareholders own 75.66% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
47.78%
Creation Capital Co., Ltd.
8,583,700¥6.1b0%no data
14.1%
RISA Capital Management Co., Ltd.
2,533,400¥1.8b0%100%
5.57%
I-Net Corp.
1,000,000¥708.0m0%no data
3.62%
Tetsuya Yuasa
650,500¥460.6m0%no data
2.66%
Payroll Inc., Employee Shareholding Association
477,503¥338.1m0%no data
0.68%
Sumitomo Mitsui DS Asset Management Company, Limited
122,000¥86.4m-15.28%no data
0.43%
Nikko Asset Management Co., Ltd.
77,700¥55.0m0%no data
0.29%
Quaero Capital SA
52,000¥36.8m0%0.04%
0.19%
Resona Asset Management Co., Ltd.
35,000¥24.8m0%0.01%
0.1%
Shuji Asai
18,131¥12.8m0%no data
0.063%
Yumi Maeda
11,300¥8.0m0%no data
0.056%
Asset Management One Co., Ltd.
10,000¥7.1m1566.67%no data
0.055%
Amundi Asset Management
9,900¥7.0m0%no data
0.026%
Takahiro Kageyama
4,653¥3.3m0%no data
0.021%
Miki Masuda
3,700¥2.6m0%no data
0.0083%
Daiwa Asset Management Co. Ltd.
1,500¥1.1m0%no data
0.0039%
Mitsubishi UFJ Asset Management (UK) Ltd.
700¥495.6k0%no data

Company Information

Payroll Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Payroll Inc.
  • Ticker: 4489
  • Exchange: TSE
  • Founded: 1989
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Implied Market Cap: JP¥12.719b
  • Shares outstanding: 17.96m
  • Website: https://www.payroll.co.jp

Number of Employees


Location

  • Payroll Inc.
  • Tokyo TOC Ariake East Tower
  • 11th and 12th floors
  • Tokyo
  • 135-0063
  • Japan


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4489TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJun 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
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.