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Universal Entertainment

Market Cap

JP¥210.8b

Last Updated

2021/04/11 08:10 UTC

Data Sources

Company Financials +

Executive Summary

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells Pachislot and Pachinko machines in Japan. More Details

Rewards

Trading at 34.6% below our estimate of its fair value

Earnings are forecast to grow 103.55% per year

Risk Analysis

No risks detected for 6425 from our risk checks.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6425 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6425's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

6425

1.3%

JP Leisure

-0.5%

JP Market


1 Year Return

81.1%

6425

51.9%

JP Leisure

37.5%

JP Market

Return vs Industry: 6425 exceeded the JP Leisure industry which returned 51.9% over the past year.

Return vs Market: 6425 exceeded the JP Market which returned 37.5% over the past year.


Shareholder returns

6425IndustryMarket
7 Day-0.5%1.3%-0.5%
30 Day-4.0%4.9%1.8%
90 Day13.2%4.2%5.2%
1 Year81.1%81.1%54.4%51.9%40.5%37.5%
3 Year-42.3%-44.1%55.5%47.3%21.1%12.7%
5 Year49.8%43.3%81.6%65.8%59.5%41.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6425 (¥2720) is trading below our estimate of fair value (¥4160.06)

Significantly Below Fair Value: 6425 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6425 is unprofitable, so we can't compare its PE Ratio to the JP Leisure industry average.

PE vs Market: 6425 is unprofitable, so we can't compare its PE Ratio to the JP market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6425's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6425 is good value based on its PB Ratio (0.6x) compared to the JP Leisure industry average (1.1x).


Future Growth

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

103.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6425 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0%).

Earnings vs Market: 6425 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 6425's is expected to become profitable in the next 3 years.

Revenue vs Market: 6425's revenue (13.8% per year) is forecast to grow faster than the JP market (5.8% per year).

High Growth Revenue: 6425's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6425's Return on Equity is forecast to be low in 3 years time (1.3%).


Past Performance

How has Universal Entertainment performed over the past 5 years?

-22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6425 is currently unprofitable.

Growing Profit Margin: 6425 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6425 is unprofitable, and losses have increased over the past 5 years at a rate of 22.1% per year.

Accelerating Growth: Unable to compare 6425's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6425 is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (-26.3%).


Return on Equity

High ROE: 6425 has a negative Return on Equity (-5.37%), as it is currently unprofitable.


Financial Health

How is Universal Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: 6425's short term assets (¥81.6B) exceed its short term liabilities (¥57.4B).

Long Term Liabilities: 6425's short term assets (¥81.6B) do not cover its long term liabilities (¥153.6B).


Debt to Equity History and Analysis

Debt Level: 6425's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: 6425's debt to equity ratio has reduced from 41.1% to 27.6% over the past 5 years.

Debt Coverage: 6425's debt is not well covered by operating cash flow (3.1%).

Interest Coverage: 6425 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is Universal Entertainment current dividend yield, its reliability and sustainability?

1.84%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6425's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6425's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6425's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6425's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6425 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6425's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jun Fujimoto (62 yo)

3.83yrs

Tenure

JP¥887,000,000

Compensation

Mr. Jun Fujimoto has been the President of Universal Entertainment Corporation (formerly Aruze Corp.) since June 2011. Mr. Fujimoto has been Chief Executive Officer and CIO at Universal Entertainment Corpo...


CEO Compensation Analysis

Compensation vs Market: Jun's total compensation ($USD8.09M) is above average for companies of similar size in the JP market ($USD1.58M).

Compensation vs Earnings: Jun's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 6425's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: 6425's board of directors are considered experienced (5.8 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

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


Key Information

  • Name: Universal Entertainment Corporation
  • Ticker: 6425
  • Exchange: JASDAQ
  • Founded: 1969
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: JP¥210.757b
  • Shares outstanding: 77.48m
  • Website: https://www.universal-777.com

Number of Employees


Location

  • Universal Entertainment Corporation
  • Ariake Frontier Building A
  • 3-7-26 Ariake
  • Tokyo
  • 135-0063
  • Japan

Listings


Biography

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells Pachislot and Pachinko machines in Japan. The company operates in two segments, Amusement Equipment Bu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 08:10
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.