TSE:3197

Stock Analysis Report

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Executive Summary

Skylark Holdings Co., Ltd. operates restaurants in Japan and internationally.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3197 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

3197

0.09%

JP Hospitality

2.8%

JP Market


1 Year Return

-9.7%

3197

0.7%

JP Hospitality

5.4%

JP Market

Return vs Industry: 3197 underperformed the JP Hospitality industry which returned 0.7% over the past year.

Return vs Market: 3197 underperformed the JP Market which returned 5.4% over the past year.


Shareholder returns

3197IndustryMarket
7 Day2.4%0.09%2.8%
30 Day12.0%14.5%12.4%
90 Day10.0%14.6%9.3%
1 Year-8.9%-9.7%1.4%0.7%8.2%5.4%
3 Year7.1%1.4%35.0%31.5%9.9%2.4%
5 Year20.1%8.5%42.4%36.2%14.2%1.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

31.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3197 (¥1789) is trading below our estimate of fair value (¥2591.14)

Significantly Below Fair Value: 3197 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3197 is poor value based on its PE Ratio (50.3x) compared to the Hospitality industry average (27.4x).

PE vs Market: 3197 is poor value based on its PE Ratio (50.3x) compared to the JP market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: 3197 is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: 3197 is overvalued based on its PB Ratio (2.7x) compared to the JP Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Skylark Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3197's forecast earnings growth (12.9% per year) is above the savings rate (0.05%).

Earnings vs Market: 3197's earnings (12.9% per year) are forecast to grow faster than the JP market (12.2% per year).

High Growth Earnings: 3197's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3197's revenue (1.9% per year) is forecast to grow slower than the JP market (3.1% per year).

High Growth Revenue: 3197's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3197's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has Skylark Holdings performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3197 has a large one-off loss of ¥4.3B impacting its March 31 2020 financial results.

Growing Profit Margin: 3197's current net profit margins (1.9%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: 3197's earnings have declined by -6.7% per year over the past 5 years.

Accelerating Growth: 3197's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3197 had negative earnings growth (-38.1%) over the past year, making it difficult to compare to the Hospitality industry average (-10%).


Return on Equity

High ROE: 3197's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Skylark Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3197's short term assets (¥34.4B) do not cover its short term liabilities (¥98.5B).

Long Term Liabilities: 3197's short term assets (¥34.4B) do not cover its long term liabilities (¥226.9B).


Debt to Equity History and Analysis

Debt Level: 3197's debt to equity ratio (9.9%) is considered satisfactory.

Reducing Debt: 3197's debt to equity ratio has reduced from 141.2% to 9.9% over the past 5 years.

Debt Coverage: 3197's debt is well covered by operating cash flow (429.9%).

Interest Coverage: 3197's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Skylark Holdings's current dividend yield, its reliability and sustainability?

1.06%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 3197's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.44%).

High Dividend: 3197's dividend (1.06%) is low compared to the top 25% of dividend payers in the JP market (3.33%).


Stability and Growth of Payments

Stable Dividend: 3197 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3197 has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.4%), 3197's dividend payments are 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?

0.4yrs

Average management tenure


CEO

Makoto Tani (68yo)

11.83yrs

Tenure

JP¥382,000,000

Compensation

Mr. Makoto Tani has been the Chief Executive Officer at Skylark Holdings Co., Ltd. (Previous name Skylark Co., Ltd) since August 2008. Mr. Tani has been the President of Skylark Holdings Co., Ltd. (Previou ...


CEO Compensation Analysis

Compensation vs Market: Makoto's total compensation ($USD3.48M) is above average for companies of similar size in the JP market ($USD1.17M).

Compensation vs Earnings: Makoto's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Makoto Tani
Chairman11.83yrsJP¥382.00m0.025% ¥89.5m
Takuya Aizawa
Executive Officer & MD of Financial Division0.33yrno datano data
Hiroshi Ishikawa
Executive Officer and MD of IT & Marketing Division0.42yrno datano data
Kouzou Nishida
Executive Officer & MD of Human Capital Management Division1.67yrsno datano data
Toshiaki Aihara
Executive Officer0.083yrno datano data
Toshiaki Ookawara
Managing Executive Officer & Corporate Director0.25yrno datano data
Minoru Kanaya
Managing Exec. Officer2.25yrsno data0.0030% ¥10.7m
Shigeto Kadowaki
Executive Officer & MD of Store Development Division7.42yrsno datano data
Shimon Kato
Executive Officer & MD of Supply Chain Production Division0.083yrno datano data
Haruyoshi Sakita
Managing Executive Officer2.25yrsno data0.0025% ¥8.9m

0.4yrs

Average Tenure

Experienced Management: 3197's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Makoto Tani
Chairman11.83yrsJP¥382.00m0.025% ¥89.5m
Toshiaki Ookawara
Managing Executive Officer & Corporate Director0.25yrno datano data
Minoru Kanaya
Managing Exec. Officer2.25yrsno data0.0030% ¥10.7m
Haruyoshi Sakita
Managing Executive Officer2.25yrsno data0.0025% ¥8.9m
Atsushi Nishijo
Independent Outside Director6.25yrsno data0.0015% ¥5.4m
Makoto Suzuki
Corporate Auditor9.25yrsno data0.0010% ¥3.6m
Fumio Tahara
Independent Outside Director2.25yrsno data0.00051% ¥1.8m
Mitsuhiro Nagata
Outside Corporate Auditor4.17yrsno data0.00051% ¥1.8m
Atsushi Kitamura
Corporate Director3.25yrsno data0.0051% ¥17.9m
Ayako Sano
Independent Outside Director1.25yrsno datano data

2.3yrs

Average Tenure

69.5yo

Average Age

Experienced Board: 3197's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Skylark Holdings Co., Ltd.
  • Ticker: 3197
  • Exchange: TSE
  • Founded: 1962
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: JP¥353.331b
  • Shares outstanding: 197.50m
  • Website: https://www.skylark.co.jp

Number of Employees


Location

  • Skylark Holdings Co., Ltd.
  • 1-25-8 Nishikubo
  • Musashino-shi
  • Musashino
  • Tokyo
  • 180-8580
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3197TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 2014
SKXDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014
SKLY.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2014

Biography

Skylark Holdings Co., Ltd. operates restaurants in Japan and internationally. The company operates Western, Chinese, Japanese, Sushi, and Italian restaurants primarily under the Gusto, Bamiyan, Jonathan´s, Syabuyo, Yumean, Steak Gusto, Grazie Gardens, Aiya, S Gusto, Totoyamichi, chawan, miwami, Tonkaratei, Katsukyu, Karayoshi, Bamiyan Ken, MUSASHI NO MORI COFFEE, Tomato and Onion, Jyu-Jyu Karubi, and FLO PRESTIGE brand names. It also provides delivery and take-out services. As of September 30, 2019, it operated 3,235 stores in Japan and internationally. The company was formerly known as Skylark Co., Ltd. and changed its name to Skylark Holdings Co., Ltd. in July 2018. Skylark Holdings Co., Ltd. was founded in 1962 and is based in Musashino, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 18:14
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.