TSE:6809

Stock Analysis Report

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Market Cap

JP¥28.8b

Last Updated

2021/06/22 08:15 UTC

Data Sources

Company Financials +

Executive Summary

TOA Corporation manufactures and sells sound and video equipment worldwide. More Details

Rewards

Trading at 5.9% below our estimate of its fair value

Earnings are forecast to grow 14.26% per year

Risk Analysis

No risks detected for 6809 from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6809 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6809's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

6809

-4.1%

JP Consumer Durables

-3.7%

JP Market


1 Year Return

20.9%

6809

30.2%

JP Consumer Durables

18.5%

JP Market

Return vs Industry: 6809 underperformed the JP Consumer Durables industry which returned 32% over the past year.

Return vs Market: 6809 underperformed the JP Market which returned 21.8% over the past year.


Shareholder returns

6809IndustryMarket
7 Day1.3%-4.1%-3.7%
30 Day-0.3%-0.8%-0.07%
90 Day-5.8%-6.6%-1.4%
1 Year23.5%20.9%32.1%30.2%21.1%18.5%
3 Year-16.7%-22.3%37.3%29.5%17.7%9.7%
5 Year11.1%-0.6%128.0%107.0%71.6%53.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6809 (¥885) is trading below our estimate of fair value (¥940.14)

Significantly Below Fair Value: 6809 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6809 is poor value based on its PE Ratio (18.1x) compared to the JP Consumer Durables industry average (11x).

PE vs Market: 6809 is poor value based on its PE Ratio (18.1x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6809 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 6809 is good value based on its PB Ratio (0.6x) compared to the JP Consumer Durables industry average (0.9x).


Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6809's forecast earnings growth (14.3% per year) is above the savings rate (0%).

Earnings vs Market: 6809's earnings (14.3% per year) are forecast to grow faster than the JP market (12.8% per year).

High Growth Earnings: 6809's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6809's revenue (5.5% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 6809's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6809's Return on Equity is forecast to be low in 3 years time (4.5%).


Past Performance

How has TOA performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6809 has high quality earnings.

Growing Profit Margin: 6809's current net profit margins (3.9%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 6809's earnings have declined by 0.6% per year over the past 5 years.

Accelerating Growth: 6809's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6809 had negative earnings growth (-22.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (17.1%).


Return on Equity

High ROE: 6809's Return on Equity (3.8%) is considered low.


Financial Health

How is TOA's financial position?


Financial Position Analysis

Short Term Liabilities: 6809's short term assets (¥36.3B) exceed its short term liabilities (¥6.8B).

Long Term Liabilities: 6809's short term assets (¥36.3B) exceed its long term liabilities (¥5.5B).


Debt to Equity History and Analysis

Debt Level: 6809's debt to equity ratio (2.7%) is considered satisfactory.

Reducing Debt: 6809's debt to equity ratio has increased from 2.6% to 2.7% over the past 5 years.

Debt Coverage: 6809's debt is well covered by operating cash flow (416.2%).

Interest Coverage: 6809 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

2.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6809's dividend (2.26%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 6809's dividend (2.26%) is low compared to the top 25% of dividend payers in the JP market (3.01%).


Stability and Growth of Payments

Stable Dividend: 6809's dividends per share have been stable in the past 10 years.

Growing Dividend: 6809's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.9%), 6809'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?

11.0yrs

Average board tenure


CEO

Kazuhiro Takeuchi (62 yo)

4yrs

Tenure

Mr. Kazuhiro Takeuchi has been the Chief Executive Officer and President TOA Corporation since June 28, 2017. Mr. Takeuchi served as Senior Vice President and Executive Manager of Domestic Marketing Divisi...


Board Members

Experienced Board: 6809's board of directors are seasoned and experienced ( 11 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

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


Key Information

  • Name: TOA Corporation
  • Ticker: 6809
  • Exchange: TSE
  • Founded: 1934
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: JP¥28.780b
  • Shares outstanding: 32.52m
  • Website: https://www.toa.co.jp

Number of Employees


Location

  • TOA Corporation
  • 7-2-1 Minatojima-Nakamachi
  • Chuo-ku
  • Kobe
  • Hyogo
  • 650-0046
  • Japan

Listings


Biography

TOA Corporation manufactures and sells sound and video equipment worldwide. The company offers public address systems, including PA systems, voice evacuation systems, wireless systems, network PA systems, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/22 08:15
End of Day Share Price2021/06/22 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.