en-japan (TSE:4849) - Share price, News & Analysis

Q: What is the Fair Price of 4849 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

4849 (¥2083) is trading below our estimate of [[fair value]] (¥7118.86)

4849 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

4849 Stock Overview

en-japan inc. provides online recruitment, recruiting and staffing, employee training, and HR consulting and aptitude test services in Japan and internationally.

Rewards

Trading at 70.7% below our estimate of its fair value

Earnings are forecast to grow 21.04% per year

Earnings grew by 89.3% over the past year

Pays a reliable dividend of 3.37%

Risk Analysis

Highly volatile share price over the past 3 months

en-japan Competitors

JAC Recruitment

TSE:2124

JP¥80.7b

Pasona Group

TSE:2168

JP¥84.6b

Fullcast Holdings

TSE:4848

JP¥86.6b

Link and Motivation

TSE:2170

JP¥65.7b

Price History & Performance

Summary of all time highs, changes and price drops for en-japan
Historical stock prices
Current Share Price	JP¥2,083.00
52 Week High	JP¥4,820.00
52 Week Low	JP¥1,590.00
Beta	2.04
1 Month Change	7.21%
3 Month Change	-32.26%
1 Year Change	-43.78%
3 Year Change	-46.18%
5 Year Change	-43.78%
Change since IPO	777.05%

Shareholder Returns

	4849	JP Professional Services	JP Market
7D	0.1%	3.1%	0.5%
1Y	-43.8%	-11.1%	-0.09%

Return vs Industry: 4849 underperformed the JP Professional Services industry which returned -11.1% over the past year.

Return vs Market: 4849 underperformed the JP Market which returned -0.1% over the past year.

Price Volatility

Is 4849's price volatile compared to industry and market?
4849 volatility
4849 Average Weekly Movement	8.5%
Professional Services Industry Average Movement	6.0%
Market Average Movement	3.9%
10% most volatile stocks in JP Market	8.1%
10% least volatile stocks in JP Market	2.1%

Stable Share Price: 4849 is more volatile than 90% of JP stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 4849's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
2000	2,928	Takatsugu Suzuki	https://corp.en-japan.com

en-japan inc. provides online recruitment, recruiting and staffing, employee training, and HR consulting and aptitude test services in Japan and internationally. The company operates job information sites, including en TENSHOKU for various recruitment and career change support services; en TENSHOKU WOMAN, a career-change support services for women; AMBI, a career change site designed for young people; MIDDLE NO TENSHOKU, a recruitment website; en HAKEN, a job-search site for temporary employment; en BAITO, a recruitment website for part-time and casual job information; en WOMEN WORK, a recruitment site for women professionals; and ONNA NO KYUJIN MART, a centralized recruitment site for female professionals. It also provides recruiting services, such as en AGENTS that offers professional and specialized support services; en Lighthouse, a word-of-mouth site; CAREER HACK, a career information site for professionals in web and IT industries; and SMART GYOKAI MAP, an industry research site that explains various companies and trends in specific industries.

en-japan Fundamentals Summary

How do en-japan's earnings and revenue compare to its market cap?
4849 fundamental statistics
Market Cap	JP¥93.57b
Earnings (TTM)	JP¥6.63b
Revenue (TTM)	JP¥54.54b

14.1x

P/E Ratio

1.7x

P/S Ratio

Is 4849 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
4849 income statement (TTM)
Revenue	JP¥54.54b
Cost of Revenue	JP¥11.50b
Gross Profit	JP¥43.04b
Other Expenses	JP¥36.42b
Earnings	JP¥6.63b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	147.55
Gross Margin	78.91%
Net Profit Margin	12.15%
Debt/Equity Ratio	0%

How did 4849 perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

25%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 4849 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
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4849?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 4849. This is calculated by dividing 4849's market cap by their current preferred multiple.
What is 4849's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥93.57b

4849 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/Revenue	1.1x
Enterprise Value/EBITDA	5x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 4849's PE Ratio compare to its peers?

4849 PE Ratio vs Peers

The above table shows the PE ratio for 4849 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	25.1x
2124 JAC Recruitment	18.7x	16.6%	JP¥80.7b
2168 Pasona Group	9.8x	8.6%	JP¥84.6b
4848 Fullcast Holdings	15.2x	11.0%	JP¥86.6b
2170 Link and Motivation	56.5x	30.0%	JP¥65.7b
4849 en-japan	14.1x	21.0%	JP¥93.6b

Price-To-Earnings vs Peers: 4849 is good value based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (25.1x).

Price to Earnings Ratio vs Industry

How does 4849's PE Ratio compare vs other companies in the JP Professional Services Industry?

Price-To-Earnings vs Industry: 4849 is good value based on its Price-To-Earnings Ratio (14.1x) compared to the JP Professional Services industry average (18.7x)

Price to Earnings Ratio vs Fair Ratio

What is 4849'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.

4849 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.1x
Fair PE Ratio	25x

Price-To-Earnings vs Fair Ratio: 4849 is good value based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (25x).

Share Price vs Fair Value

What is the Fair Price of 4849 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4849 (¥2083) is trading below our estimate of fair value (¥7118.86)

Significantly Below Fair Value: 4849 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: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is en-japan forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4849's forecast earnings growth (21% per year) is above the savings rate (0.04%).

Earnings vs Market: 4849's earnings (21% per year) are forecast to grow faster than the JP market (8.6% per year).

High Growth Earnings: 4849's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4849's revenue (12.6% per year) is forecast to grow faster than the JP market (4.4% per year).

High Growth Revenue: 4849's revenue (12.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 4849's Return on Equity is forecast to be low in 3 years time (16.6%).

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Past Performance

How has en-japan performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 4849 has high quality earnings.

Growing Profit Margin: 4849's current net profit margins (12.2%) are higher than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: 4849's earnings have declined by 1.8% per year over the past 5 years.

Accelerating Growth: 4849's earnings growth over the past year (89.3%) exceeds its 5-year average (-1.8% per year).

Earnings vs Industry: 4849 earnings growth over the past year (89.3%) exceeded the Professional Services industry 22.8%.

Return on Equity

High ROE: 4849's Return on Equity (16.3%) is considered low.

Discover strong past performing companies

Financial Health

How is en-japan'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: 4849's short term assets (¥42.3B) exceed its short term liabilities (¥13.5B).

Long Term Liabilities: 4849's short term assets (¥42.3B) exceed its long term liabilities (¥1.6B).

Debt to Equity History and Analysis

Debt Level: 4849 is debt free.

Reducing Debt: 4849 had no debt 5 years ago.

Debt Coverage: 4849 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 4849 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is en-japan 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
Cash Flow Coverage

3.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 4849's dividend (3.37%) is higher than the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 4849's dividend (3.37%) is low compared to the top 25% of dividend payers in the JP market (3.62%).

Stability and Growth of Payments

Stable Dividend: 4849's dividends per share have been stable in the past 10 years.

Growing Dividend: 4849's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.1%), 4849's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.2%), 4849'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?

2.2yrs

Average board tenure

CEO

Takatsugu Suzuki (51 yo)

7.33yrs

Tenure

Mr. Takatsugu Suzuki has been the Representative Executive President of en-japan Inc. since June 2008 and has been its Manager of Mid-Career Hiring Support Business Department since 2012 and Executive Offi...

Board Members

Experienced Board: 4849's board of directors are not considered experienced ( 2.2 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

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31