ZENKOKU HOSHOLtd (TSE:7164) - Share price, News & Analysis

7164 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

7164 Stock Overview

ZENKOKU HOSHO Co.,Ltd., together with its subsidiaries, engages in the credit guarantee business in Japan.

Rewards

Trading at 49.3% below our estimate of its fair value

Earnings have grown 7% per year over the past 5 years

Risk Analysis

No risks detected for 7164 from our risk checks.

ZENKOKU HOSHOLtd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ZENKOKU HOSHOLtd
Historical stock prices
Current Share Price	JP¥4,210.00
52 Week High	JP¥5,880.00
52 Week Low	JP¥4,290.00
Beta	0.88
1 Month Change	-8.08%
3 Month Change	-13.20%
1 Year Change	-7.68%
3 Year Change	8.51%
5 Year Change	-10.24%
Change since IPO	602.84%

Shareholder Returns

	7164	JP Diversified Financial	JP Market
7D	-7.6%	0.4%	0.6%
1Y	-7.7%	2.5%	-2.9%

Return vs Industry: 7164 underperformed the JP Diversified Financial industry which returned 2.5% over the past year.

Return vs Market: 7164 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 7164's price volatile compared to industry and market?
7164 volatility
7164 Average Weekly Movement	3.1%
Diversified Financial Industry Average Movement	4.4%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.2%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 7164 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 7164's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	258	Eiji Ishikawa	https://www.zenkoku.co.jp

ZENKOKU HOSHO Co.,Ltd., together with its subsidiaries, engages in the credit guarantee business in Japan. It also provides mortgage, card loan, apartment loan, and education loan guarantees. In addition, the company is involved in the non-life insurance agency and credit research businesses; and the provision of contracting, representative, and information processing and provision services.

ZENKOKU HOSHOLtd Fundamentals Summary

How do ZENKOKU HOSHOLtd's earnings and revenue compare to its market cap?
7164 fundamental statistics
Market Cap	JP¥296.84b
Earnings (TTM)	JP¥27.84b
Revenue (TTM)	JP¥48.84b

10.4x

P/E Ratio

5.9x

P/S Ratio

Is 7164 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7164 income statement (TTM)
Revenue	JP¥48.84b
Cost of Revenue	JP¥3.00m
Gross Profit	JP¥48.84b
Other Expenses	JP¥21.00b
Earnings	JP¥27.84b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	404.62
Gross Margin	99.99%
Net Profit Margin	56.99%
Debt/Equity Ratio	16.2%

How did 7164 perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

49.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 7164 (¥4210) is trading below our estimate of fair value (¥8311.08)

Significantly Below Fair Value: 7164 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 7164's PE Ratio (10.4x) is in line with the JP Diversified Financial industry average.

PE vs Market: 7164 is good value based on its PE Ratio (10.4x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7164's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 7164 is overvalued based on its PB Ratio (1.6x) compared to the JP Diversified Financial industry average (0.8x).

Future Growth

How is ZENKOKU HOSHOLtd 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

7.5%

Forecasted Diversified Financials 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 ZENKOKU HOSHOLtd 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.

Past Performance

How has ZENKOKU HOSHOLtd performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

7.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7164 has high quality earnings.

Growing Profit Margin: 7164's current net profit margins (57%) are higher than last year (56.4%).

Past Earnings Growth Analysis

Earnings Trend: 7164's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: 7164's earnings growth over the past year (3.1%) is below its 5-year average (7% per year).

Earnings vs Industry: 7164 earnings growth over the past year (3.1%) underperformed the Diversified Financial industry 14.4%.

Return on Equity

High ROE: 7164's Return on Equity (15.1%) is considered low.

Financial Health

How is ZENKOKU HOSHOLtd's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7164's short term assets (¥185.8B) exceed its short term liabilities (¥30.8B).

Long Term Liabilities: 7164's short term assets (¥185.8B) do not cover its long term liabilities (¥200.2B).

Debt to Equity History and Analysis

Debt Level: 7164 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 7164's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 7164's debt is well covered by operating cash flow (97.6%).

Interest Coverage: 7164 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is ZENKOKU HOSHOLtd current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 7164's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 7164's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 7164's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7164's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 7164 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

8.9yrs

Average management tenure

CEO

Eiji Ishikawa (57 yo)

15.83yrs

Tenure

Mr. Eiji Ishikawa has been the President of ZENKOKU HOSHO Co.,Ltd. since July 2006. Mr. Ishikawa joined The Johnan Shinkin Bank, Ltd.in April 1987. Mr. Ishikawa joined ZENKOKU HOSHO Co., Ltd. in January...

Leadership Team

Experienced Management: 7164's management team is seasoned and experienced (8.9 years average tenure).

Board Members

Experienced Board: 7164's board of directors are considered experienced (3.9 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	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31