TSE:1928

Stock Analysis Report

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Market Cap

JP¥1.6t

Last Updated

2021/06/23 08:01 UTC

Data Sources

Company Financials +

Executive Summary

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1928 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1928's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

1928

0%

JP Consumer Durables

0%

JP Market


1 Year Return

10.5%

1928

0%

JP Consumer Durables

0%

JP Market

Return vs Industry: 1928 underperformed the JP Consumer Durables industry which returned 34.9% over the past year.

Return vs Market: 1928 underperformed the JP Market which returned 22.3% over the past year.


Shareholder returns

1928IndustryMarket
7 Day1.6%0%0%
30 Day-1.2%0%0%
90 Day-2.8%0%0%
1 Year15.1%10.5%0%0%0%0%
3 Year32.6%17.1%0%0%0%0%
5 Year55.3%27.4%0%0%0%0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

12.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1928 (¥2289.5) is trading above our estimate of fair value (¥2104)

Significantly Below Fair Value: 1928 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1928 is poor value based on its PE Ratio (12.1x) compared to the JP Consumer Durables industry average (11x).

PE vs Market: 1928 is good value based on its PE Ratio (12.1x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1928 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 1928 is overvalued based on its PB Ratio (1.1x) compared to the JP Consumer Durables industry average (0.9x).


Future Growth

How is Sekisui House forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1928's forecast earnings growth (4.1% per year) is above the savings rate (0%).

Earnings vs Market: 1928's earnings (4.1% per year) are forecast to grow slower than the JP market (12.8% per year).

High Growth Earnings: 1928's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1928's revenue (2.1% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 1928's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1928's Return on Equity is forecast to be low in 3 years time (9.9%).


Past Performance

How has Sekisui House performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1928 has high quality earnings.

Growing Profit Margin: 1928's current net profit margins (5.3%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 1928's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 1928's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1928 had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (17.1%).


Return on Equity

High ROE: 1928's Return on Equity (9.5%) is considered low.


Financial Health

How is Sekisui House's financial position?


Financial Position Analysis

Short Term Liabilities: 1928's short term assets (¥1,803.4B) exceed its short term liabilities (¥818.9B).

Long Term Liabilities: 1928's short term assets (¥1,803.4B) exceed its long term liabilities (¥436.0B).


Debt to Equity History and Analysis

Debt Level: 1928's debt to equity ratio (41.1%) is considered high.

Reducing Debt: 1928's debt to equity ratio has reduced from 48% to 41.1% over the past 5 years.

Debt Coverage: 1928's debt is well covered by operating cash flow (33.1%).

Interest Coverage: 1928 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Sekisui House current dividend yield, its reliability and sustainability?

3.78%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 23 2021Ex Dividend DateJul 29 2021Dividend Pay DateSep 30 202163 days from Ex DividendBuy in the next 35 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1928's dividend (3.76%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 1928's dividend (3.76%) is in the top 25% of dividend payers in the JP market (3%)


Stability and Growth of Payments

Stable Dividend: 1928's dividends per share have been stable in the past 10 years.

Growing Dividend: 1928's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), 1928'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?

3.2yrs

Average management tenure


CEO

Yoshihiro Nakai (55 yo)

3.33yrs

Tenure

JP¥156,000,000

Compensation

Mr. Yoshihiro Nakai serves as President and Representative Director at Sekisui House Ltd. since February 2018 and serves as its Chief Executive Officer. Mr. Nakai served as Senior Managing Officer of Sekis...


CEO Compensation Analysis

Compensation vs Market: Yoshihiro's total compensation ($USD1.42M) is about average for companies of similar size in the JP market ($USD1.82M).

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


Leadership Team

Experienced Management: 1928's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: 1928's board of directors are considered experienced (3.3 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

Sekisui House, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sekisui House, Ltd.
  • Ticker: 1928
  • Exchange: TSE
  • Founded: 1960
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: JP¥1.553t
  • Shares outstanding: 678.10m
  • Website: https://www.sekisuihouse.co.jp

Number of Employees


Location

  • Sekisui House, Ltd.
  • Umeda Sky Building Tower East
  • 1-1-88, Oyodonaka
  • Osaka
  • 531-0076
  • Japan

Listings


Biography

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. It also engages in the design, construction, and contracting of built-to-order properties...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 08:01
End of Day Share Price2021/06/23 00:00
Earnings2021/04/30
Annual Earnings2021/01/31


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.