Fuyo General Lease (TSE:8424) - Share price, News & Analysis

8424 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	4/6
Dividends	6/6

8424 Stock Overview

Fuyo General Lease Co., Ltd. engages in leasing and installment sales business in Japan and internationally.

Rewards

Trading at 37.9% below our estimate of its fair value

Earnings are forecast to grow 1.92% per year

Earnings grew by 14.6% over the past year

Pays a high and reliable dividend of 4.38%

Risk Analysis

Debt is not well covered by operating cash flow

Fuyo General Lease Competitors

Mitsubishi HC Capital

TSE:8593

JP¥875.9b

Tokyo Century

TSE:8439

JP¥499.8b

Mizuho Leasing Company

TSE:8425

JP¥142.9b

Ricoh Leasing Company

TSE:8566

JP¥103.3b

Price History & Performance

Summary of all time highs, changes and price drops for Fuyo General Lease
Historical stock prices
Current Share Price	JP¥7,220.00
52 Week High	JP¥8,290.00
52 Week Low	JP¥6,590.00
Beta	0.87
1 Month Change	1.55%
3 Month Change	-7.44%
1 Year Change	-7.32%
3 Year Change	36.48%
5 Year Change	22.58%
Change since IPO	175.57%

Shareholder Returns

	8424	JP Diversified Financial	JP Market
7D	-3.2%	0.4%	0.7%
1Y	-7.3%	1.2%	-2.9%

Return vs Industry: 8424 underperformed the JP Diversified Financial industry which returned 1.2% over the past year.

Return vs Market: 8424 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 8424's price volatile compared to industry and market?
8424 volatility
8424 Average Weekly Movement	3.8%
Diversified Financial Industry Average Movement	4.4%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 8424 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 8424's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	2,637	Hiroaki Oda	https://www.fgl.co.jp

Fuyo General Lease Co., Ltd. engages in leasing and installment sales business in Japan and internationally. It is involved in the lease and installment sale of IT and office equipment, industrial machinery/machine tools, commercial/service equipment, medical devices, civil engineering and construction machinery, etc.; and transportation equipment, including ships, aircraft, automobiles, etc. The company also offers various leases comprising finance, operating, PC eco and value, auto, vendor, building, and space leases. In addition, it provides installment sales schemes for properties; and rental estate financing services consisting of non-recourse real estate loans and other financing schemes.

Fuyo General Lease Fundamentals Summary

How do Fuyo General Lease's earnings and revenue compare to its market cap?
8424 fundamental statistics
Market Cap	JP¥216.06b
Earnings (TTM)	JP¥33.89b
Revenue (TTM)	JP¥657.85b

6.4x

P/E Ratio

0.3x

P/S Ratio

Is 8424 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8424 income statement (TTM)
Revenue	JP¥657.85b
Cost of Revenue	JP¥568.99b
Gross Profit	JP¥88.86b
Other Expenses	JP¥54.97b
Earnings	JP¥33.89b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.13k
Gross Margin	13.51%
Net Profit Margin	5.15%
Debt/Equity Ratio	616.0%

How did 8424 perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

25%

Payout Ratio

Valuation

Is Fuyo General Lease undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

37.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8424 (¥7220) is trading below our estimate of fair value (¥11617.33)

Significantly Below Fair Value: 8424 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 8424 is good value based on its PE Ratio (6.4x) compared to the JP Diversified Financial industry average (10.2x).

PE vs Market: 8424 is good value based on its PE Ratio (6.4x) compared to the JP market (12.2x).

Price to Earnings Growth Ratio

PEG Ratio: 8424 is poor value based on its PEG Ratio (3.3x)

Price to Book Ratio

PB vs Industry: 8424 is good value based on its PB Ratio (0.6x) compared to the JP Diversified Financial industry average (0.8x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

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

1.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8424's forecast earnings growth (1.9% per year) is above the savings rate (0.02%).

Earnings vs Market: 8424's earnings (1.9% per year) are forecast to grow slower than the JP market (8.8% per year).

High Growth Earnings: 8424's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8424's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: 8424's revenue is forecast to decline over the next 3 years (-0.3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 8424's Return on Equity is forecast to be low in 3 years time (9.6%).

Past Performance

How has Fuyo General Lease performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

10.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8424 has high quality earnings.

Growing Profit Margin: 8424's current net profit margins (5.2%) are higher than last year (4%).

Past Earnings Growth Analysis

Earnings Trend: 8424's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: 8424's earnings growth over the past year (14.6%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: 8424 earnings growth over the past year (14.6%) exceeded the Diversified Financial industry 14.4%.

Return on Equity

High ROE: 8424's Return on Equity (9.7%) is considered low.

Financial Health

How is Fuyo General Lease'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: 8424's short term assets (¥2,024.9B) exceed its short term liabilities (¥1,451.5B).

Long Term Liabilities: 8424's short term assets (¥2,024.9B) exceed its long term liabilities (¥1,124.0B).

Debt to Equity History and Analysis

Debt Level: 8424's net debt to equity ratio (510.4%) is considered high.

Reducing Debt: 8424's debt to equity ratio has reduced from 714.2% to 616% over the past 5 years.

Debt Coverage: 8424's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: 8424 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Fuyo General Lease current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

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

4.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8424's dividend (4.38%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 8424's dividend (4.38%) is in the top 25% of dividend payers in the JP market (3.69%)

Stability and Growth of Payments

Stable Dividend: 8424's dividends per share have been stable in the past 10 years.

Growing Dividend: 8424's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.2%), 8424's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (10.9%), 8424's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure

CEO

Hiroaki Oda

0.33

Tenure

Leadership Team

Experienced Management: 8424's management team is considered experienced (2.1 years average tenure).

Board Members

Experienced Board: 8424's board of directors are not considered experienced ( 1.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31