TSE:1766

Stock Analysis Report

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Market Cap

JP¥136.1b

Last Updated

2021/08/02 15:34 UTC

Data Sources

Company Financials +

Executive Summary

Token Corporation operates as a construction company in Japan. More Details

Rewards

Trading at 5.5% below our estimate of its fair value

Earnings are forecast to grow 8.85% per year

Pays a reliable dividend of 2.47%

Risk Analysis

No risks detected for 1766 from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1766 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1766's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

1766

1.8%

JP Consumer Durables

-0.3%

JP Market


1 Year Return

48.6%

1766

38.5%

JP Consumer Durables

25.6%

JP Market

Return vs Industry: 1766 exceeded the JP Consumer Durables industry which returned 38.5% over the past year.

Return vs Market: 1766 exceeded the JP Market which returned 25.6% over the past year.


Shareholder returns

1766IndustryMarket
7 Day-0.7%1.8%-0.3%
30 Day-1.4%-1.4%-2.9%
90 Day3.7%1.6%-0.02%
1 Year52.0%48.6%40.5%38.5%28.3%25.6%
3 Year32.3%21.6%36.8%29.3%17.4%9.3%
5 Year39.9%24.6%123.2%103.2%65.3%47.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1766 (¥10120) is trading below our estimate of fair value (¥10707.05)

Significantly Below Fair Value: 1766 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1766 is poor value based on its PE Ratio (13.5x) compared to the JP Consumer Durables industry average (10.5x).

PE vs Market: 1766 is good value based on its PE Ratio (13.5x) compared to the JP market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: 1766 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 1766 is overvalued based on its PB Ratio (1.3x) compared to the JP Consumer Durables industry average (0.9x).


Future Growth

How is Token forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1766's forecast earnings growth (8.8% per year) is above the savings rate (0%).

Earnings vs Market: 1766's earnings (8.8% per year) are forecast to grow slower than the JP market (11.7% per year).

High Growth Earnings: 1766's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1766's revenue (4.1% per year) is forecast to grow slower than the JP market (5.1% per year).

High Growth Revenue: 1766's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1766's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Token performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1766 has high quality earnings.

Growing Profit Margin: 1766's current net profit margins (3.3%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: 1766's earnings have declined by 1.4% per year over the past 5 years.

Accelerating Growth: 1766's earnings growth over the past year (17.1%) exceeds its 5-year average (-1.4% per year).

Earnings vs Industry: 1766 earnings growth over the past year (17.1%) underperformed the Consumer Durables industry 31.5%.


Return on Equity

High ROE: 1766's Return on Equity (9.6%) is considered low.


Financial Health

How is Token's financial position?


Financial Position Analysis

Short Term Liabilities: 1766's short term assets (¥134.3B) exceed its short term liabilities (¥59.6B).

Long Term Liabilities: 1766's short term assets (¥134.3B) exceed its long term liabilities (¥29.3B).


Debt to Equity History and Analysis

Debt Level: 1766 is debt free.

Reducing Debt: 1766 has not had any debt for past 5 years.

Debt Coverage: 1766 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1766 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1766's dividend (2.47%) is higher than the bottom 25% of dividend payers in the JP market (1.34%).

High Dividend: 1766's dividend (2.47%) is low compared to the top 25% of dividend payers in the JP market (3.03%).


Stability and Growth of Payments

Stable Dividend: 1766's dividends per share have been stable in the past 10 years.

Growing Dividend: 1766's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.3%), 1766'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

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

21.3yrs

Average management tenure


CEO

Minoru Soda (74 yo)

42.08yrs

Tenure

JP¥239,000,000

Compensation

Mr. Minoru Soda has been the President of Token Corporation since July 1979 and served as its Chief Executive Officer. Mr. Soda founded Tomei Shoji, Ltd., (now Token Corporation) in July 1974. Mr. Soda est...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Minoru's total compensation is reasonable compared to companies of similar size in the JP market.

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


Leadership Team

Experienced Management: 1766's management team is seasoned and experienced (21.3 years average tenure).


Board Members

Experienced Board: 1766's board of directors are seasoned and experienced ( 13.1 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

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


Key Information

  • Name: Token Corporation
  • Ticker: 1766
  • Exchange: TSE
  • Founded: 1974
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: JP¥136.065b
  • Shares outstanding: 13.45m
  • Website: https://www.token.co.jp

Number of Employees


Location

  • Token Corporation
  • Marunouchi Building
  • 1-33, 2-chome, Marunouchi
  • Nagoya
  • Aichi
  • 460-0002
  • Japan

Listings


Biography

Token Corporation operates as a construction company in Japan. It is involved in the rental of rental apartments, condominiums, and retail outlets; home remodeling business; and construction of general and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 15:34
End of Day Share Price2021/08/02 00:00
Earnings2021/04/30
Annual Earnings2021/04/30


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.