Chofu Seisakusho (TSE:5946) - Share price, News & Analysis

5946 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	5/6

5946 Stock Overview

Chofu Seisakusho Co., Ltd. manufactures and sells residential appliances in Japan.

Rewards

Trading at 16.5% below our estimate of its fair value

Pays a reliable dividend of 2.04%

Risk Analysis

No risks detected for 5946 from our risk checks.

Chofu Seisakusho Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chofu Seisakusho
Historical stock prices
Current Share Price	JP¥1,761.00
52 Week High	JP¥2,249.00
52 Week Low	JP¥1,730.00
Beta	0.027
1 Month Change	-1.62%
3 Month Change	-13.17%
1 Year Change	-12.78%
3 Year Change	-17.48%
5 Year Change	-34.22%
Change since IPO	-11.14%

Shareholder Returns

	5946	JP Consumer Durables	JP Market
7D	0.3%	0.6%	1.9%
1Y	-12.8%	-4.2%	-6.2%

Return vs Industry: 5946 underperformed the JP Consumer Durables industry which returned -4.2% over the past year.

Return vs Market: 5946 underperformed the JP Market which returned -6.2% over the past year.

Price Volatility

Is 5946's price volatile compared to industry and market?
5946 volatility
5946 Average Weekly Movement	2.6%
Consumer Durables Industry Average Movement	3.6%
Market Average Movement	4.2%
10% most volatile stocks in JP Market	8.5%
10% least volatile stocks in JP Market	2.3%

Stable Share Price: 5946 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 5946's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1950	1,210	Kiyotaka Taneda	https://www.chofu.co.jp

Chofu Seisakusho Co., Ltd. manufactures and sells residential appliances in Japan. It offers water heaters, such as oil-fired/gas-fired/electric water heaters, and oil-fired/gas-fired boilers; bath/kitchen products, including bath units, kitchen units, and bath tubs; air conditioners and heating appliances; and appliances for commercial use. The company also provides eco-friendly appliances comprising co-generation systems, CO2 heat pump water heaters, and solar equipment.

Chofu Seisakusho Fundamentals Summary

How do Chofu Seisakusho's earnings and revenue compare to its market cap?
5946 fundamental statistics
Market Cap	JP¥61.18b
Earnings (TTM)	JP¥2.79b
Revenue (TTM)	JP¥44.96b

21.9x

P/E Ratio

1.4x

P/S Ratio

Is 5946 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5946 income statement (TTM)
Revenue	JP¥44.96b
Cost of Revenue	JP¥34.35b
Gross Profit	JP¥10.61b
Other Expenses	JP¥7.82b
Earnings	JP¥2.79b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	80.37
Gross Margin	23.61%
Net Profit Margin	6.21%
Debt/Equity Ratio	0.007%

How did 5946 perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

45%

Payout Ratio

Does 5946 pay a reliable dividends?

See 5946 dividend history and benchmarks

When do you need to buy 5946 by to receive an upcoming dividend?
Chofu Seisakusho dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Aug 22 2022
Days until Ex dividend	2 days
Days until Dividend pay date	56 days

Does 5946 pay a reliable dividends?

See 5946 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 5946 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5946?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 5946. This is calculated by dividing 5946's market cap by their current preferred multiple.
What is 5946's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥61.18b

5946 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	16.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 5946's PE Ratio compare to its peers?

5946 PE Ratio vs Peers

The above table shows the PE ratio for 5946 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.8x

Forward PE

Price-To-Earnings vs Peers: 5946 is good value based on its Price-To-Earnings Ratio (21.9x) compared to the peer average (22.8x).

Price to Earnings Ratio vs Industry

How does 5946's PE Ratio compare vs other companies in the Japanese Consumer Durables Industry?

Price-To-Earnings vs Industry: 5946 is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the JP Consumer Durables industry average (8.5x)

Price to Earnings Ratio vs Fair Ratio

What is 5946'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.

5946 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 5946's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 5946 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5946 (¥1761) is trading below our estimate of fair value (¥2109.77)

Significantly Below Fair Value: 5946 is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5946's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is Chofu Seisakusho forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

6.2%

Forecasted Consumer Durables industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Chofu Seisakusho has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine Chofu Seisakusho's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Chofu Seisakusho performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

1.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5946 has high quality earnings.

Growing Profit Margin: 5946's current net profit margins (6.2%) are lower than last year (7%).

Past Earnings Growth Analysis

Earnings Trend: 5946's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: 5946's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5946 had negative earnings growth (-10.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (24.1%).

Return on Equity

High ROE: 5946's Return on Equity (2.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Chofu Seisakusho'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: 5946's short term assets (¥26.2B) exceed its short term liabilities (¥7.7B).

Long Term Liabilities: 5946's short term assets (¥26.2B) exceed its long term liabilities (¥1.2B).

Debt to Equity History and Analysis

Debt Level: 5946 has more cash than its total debt.

Reducing Debt: 5946's debt to equity ratio has reduced from 0.8% to 0.01% over the past 5 years.

Debt Coverage: 5946's debt is well covered by operating cash flow (45250%).

Interest Coverage: 5946 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

What is Chofu Seisakusho current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.04%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 5946's dividend (2.04%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 5946's dividend (2.04%) is low compared to the top 25% of dividend payers in the JP market (3.74%).

Stability and Growth of Payments

Stable Dividend: 5946's dividends per share have been stable in the past 10 years.

Growing Dividend: 5946's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44.8%), 5946's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.5%), 5946'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?

8.2yrs

Average management tenure

CEO

Kiyotaka Taneda (66 yo)

no data

Tenure

Mr. Kiyotaka Taneda serves as President of Chofu Seisakusho Co. Ltd. He had been Managing Director of Chofu Seisakusho Co. Ltd since April 2014. Mr. Taneda served as Manager of Technology Department of Cho...

Leadership Team

Experienced Management: 5946's management team is seasoned and experienced (8.2 years average tenure).

Board Members

Experienced Board: 5946's board of directors are seasoned and experienced ( 10.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31