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8439

Tokyo Century TSE:8439 Stock Report

Last Price

JP¥4.14k

Market Cap

JP¥505.3b

7D

2.6%

1Y

-37.6%

Updated

18 May, 2022

Data

Company Financials +
8439 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends5/6

8439 Stock Overview

Tokyo Century Corporation provides leasing, installment sales, and other financial services for IT-related equipment, industrial equipment, and other machinery and facilities in Japan and internationally.

Tokyo Century Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tokyo Century
Historical stock prices
Current Share PriceJP¥4,135.00
52 Week HighJP¥6,820.00
52 Week LowJP¥3,815.00
Beta1.72
1 Month Change4.95%
3 Month Change-26.55%
1 Year Change-37.63%
3 Year Change-11.65%
5 Year Change-1.08%
Change since IPO410.49%

Recent News & Updates

Shareholder Returns

8439JP Diversified FinancialJP Market
7D2.6%0.4%0.6%
1Y-37.6%2.5%-2.9%

Return vs Industry: 8439 underperformed the JP Diversified Financial industry which returned 2.5% over the past year.

Return vs Market: 8439 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 8439's price volatile compared to industry and market?
8439 volatility
8439 Average Weekly Movement6.0%
Diversified Financial Industry Average Movement4.4%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.2%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 8439 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 8439's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19697,438Koichi Babahttps://www.tokyocentury.co.jp

Tokyo Century Corporation provides leasing, installment sales, and other financial services for IT-related equipment, industrial equipment, and other machinery and facilities in Japan and internationally. The company offers financial services for various types of equipment and machinery, including information and communications, office, factory, and commercial equipment, as well as construction machinery; financial services in the fields of shipping, aviation, environment and energy, and real estate, as well as structured finance products; and account receivable financing and securitization services. It also provides auto and aviation leasing, and car rental and sharing services for corporate customers and individuals; telematics; refurbishment of IT equipment; casualty insurance; factoring and reverse factoring; and business processing and inspection services, as well as sells electricity generated using biogas and solar.

Tokyo Century Fundamentals Summary

How do Tokyo Century's earnings and revenue compare to its market cap?
8439 fundamental statistics
Market CapJP¥505.30b
Earnings (TTM)JP¥50.29b
Revenue (TTM)JP¥1.28t

10.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8439 income statement (TTM)
RevenueJP¥1.28t
Cost of RevenueJP¥1.07t
Gross ProfitJP¥207.07b
Other ExpensesJP¥156.78b
EarningsJP¥50.29b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)411.53
Gross Margin16.20%
Net Profit Margin3.94%
Debt/Equity Ratio533.9%

How did 8439 perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

34%

Payout Ratio

Valuation

Is Tokyo Century 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


39.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8439 (¥4135) is trading below our estimate of fair value (¥6814.42)

Significantly Below Fair Value: 8439 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8439 is good value based on its PE Ratio (10x) compared to the JP Diversified Financial industry average (10.4x).

PE vs Market: 8439 is good value based on its PE Ratio (10x) compared to the JP market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: 8439 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 8439's PB Ratio (0.7x) is in line with the JP Diversified Financial industry average.


Future Growth

How is Tokyo Century forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8439's forecast earnings growth (10.7% per year) is above the savings rate (0.02%).

Earnings vs Market: 8439's earnings (10.7% per year) are forecast to grow faster than the JP market (8.6% per year).

High Growth Earnings: 8439's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8439's revenue (7.6% per year) is forecast to grow faster than the JP market (4.1% per year).

High Growth Revenue: 8439's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8439's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

How has Tokyo Century 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


2.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8439 has high quality earnings.

Growing Profit Margin: 8439's current net profit margins (3.9%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: 8439's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: 8439's earnings growth over the past year (2.3%) is below its 5-year average (2.7% per year).

Earnings vs Industry: 8439 earnings growth over the past year (2.3%) underperformed the Diversified Financial industry 14.4%.


Return on Equity

High ROE: 8439's Return on Equity (7.4%) is considered low.


Financial Health

How is Tokyo Century's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8439's short term assets (¥2,963.6B) exceed its short term liabilities (¥1,823.6B).

Long Term Liabilities: 8439's short term assets (¥2,963.6B) do not cover its long term liabilities (¥3,044.6B).


Debt to Equity History and Analysis

Debt Level: 8439's net debt to equity ratio (503.5%) is considered high.

Reducing Debt: 8439's debt to equity ratio has reduced from 675.1% to 533.9% over the past 5 years.

Debt Coverage: 8439's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: 8439's interest payments on its debt are well covered by EBIT (35.7x coverage).


Balance Sheet


Dividend

What is Tokyo Century 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


3.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8439's dividend (3.48%) is higher than the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 8439's dividend (3.48%) is low compared to the top 25% of dividend payers in the JP market (3.64%).


Stability and Growth of Payments

Stable Dividend: 8439's dividends per share have been stable in the past 10 years.

Growing Dividend: 8439's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.3%), 8439's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.2%), 8439's dividend payments are thoroughly covered by cash flows.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Koichi Baba (60 yo)

0.33

Tenure

Mr. Koichi Baba serves as President & Chief Executive Officer at Tokyo Century Corporation since 2022. He had been Senior Managing Executive Officer at Tokyo Century Corporation since April 01, 2018 until...


Leadership Team

Experienced Management: 8439's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: 8439's board of directors are considered experienced (4.4 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

Tokyo Century Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Tokyo Century Corporation
  • Ticker: 8439
  • Exchange: TSE
  • Founded: 1969
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Implied Market Cap: JP¥505.304b
  • Shares outstanding: 122.20m
  • Website: https://www.tokyocentury.co.jp

Number of Employees


Location

  • Tokyo Century Corporation
  • FUJISOFT Building
  • 3 Kanda-neribeicho
  • Tokyo
  • 101-0022
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.