TSE:3569

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

JP¥115.3b

Last Updated

2021/06/13 08:21 UTC

Data Sources

Company Financials +

Executive Summary

Seiren Co.,Ltd. plans, manufactures, and markets textile and chemical products, industrial machines, and electronic parts in Japan and internationally. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3569 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3569's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.2%

3569

1.2%

JP Luxury

0.06%

JP Market


1 Year Return

61.0%

3569

25.3%

JP Luxury

23.0%

JP Market

Return vs Industry: 3569 exceeded the JP Luxury industry which returned 25.3% over the past year.

Return vs Market: 3569 exceeded the JP Market which returned 23% over the past year.


Shareholder returns

3569IndustryMarket
7 Day-0.2%1.2%0.06%
30 Day9.8%16.3%5.5%
90 Day8.1%11.3%0.02%
1 Year64.4%61.0%27.8%25.3%25.7%23.0%
3 Year21.1%13.2%-2.0%-7.9%16.7%8.7%
5 Year138.4%115.0%47.3%33.4%72.5%53.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3569 (¥2150) is trading below our estimate of fair value (¥2845)

Significantly Below Fair Value: 3569 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3569 is good value based on its PE Ratio (18.9x) compared to the JP Luxury industry average (19.8x).

PE vs Market: 3569 is poor value based on its PE Ratio (18.9x) compared to the JP market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: 3569 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 3569 is overvalued based on its PB Ratio (1.4x) compared to the JP Luxury industry average (0.7x).


Future Growth

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

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3569's forecast earnings growth (17.5% per year) is above the savings rate (0%).

Earnings vs Market: 3569's earnings (17.5% per year) are forecast to grow faster than the JP market (13.3% per year).

High Growth Earnings: 3569's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3569's revenue (7.6% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 3569's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3569's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has SeirenLtd performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3569 has high quality earnings.

Growing Profit Margin: 3569's current net profit margins (6.3%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: 3569's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: 3569's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3569 had negative earnings growth (-26.9%) over the past year, making it difficult to compare to the Luxury industry average (-20%).


Return on Equity

High ROE: 3569's Return on Equity (7.7%) is considered low.


Financial Health

How is SeirenLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 3569's short term assets (¥88.3B) exceed its short term liabilities (¥26.0B).

Long Term Liabilities: 3569's short term assets (¥88.3B) exceed its long term liabilities (¥37.8B).


Debt to Equity History and Analysis

Debt Level: 3569's debt to equity ratio (42.5%) is considered high.

Reducing Debt: 3569's debt to equity ratio has increased from 22.6% to 42.5% over the past 5 years.

Debt Coverage: 3569's debt is well covered by operating cash flow (37.7%).

Interest Coverage: 3569 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

1.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3569's dividend (1.67%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 3569's dividend (1.67%) is low compared to the top 25% of dividend payers in the JP market (2.99%).


Stability and Growth of Payments

Stable Dividend: 3569's dividends per share have been stable in the past 10 years.

Growing Dividend: 3569's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.6%), 3569'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?

7.0yrs

Average management tenure


CEO

Tatsuo Kawada (80 yo)

7yrs

Tenure

Mr. Tatsuo Kawada has been Chairman of Seiren Co., Ltd since 2011 and has been its and Chief Executive Officer since June 2014 and has been its General Manager of Global Corporate Strategy Division since F...


Leadership Team

Experienced Management: 3569's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: 3569's board of directors are considered experienced (7 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

Seiren Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seiren Co.,Ltd.
  • Ticker: 3569
  • Exchange: TSE
  • Founded: 1889
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: JP¥115.317b
  • Shares outstanding: 53.64m
  • Website: https://www.seiren.com

Number of Employees


Location

  • Seiren Co.,Ltd.
  • Shin Aoyama Building East
  • 13th and 17th Floor
  • Tokyo
  • 107-0062
  • Japan

Listings


Biography

Seiren Co.,Ltd. plans, manufactures, and markets textile and chemical products, industrial machines, and electronic parts in Japan and internationally. The company offers a digital production system that i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 08:21
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.