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8793

NEC Capital Solutions TSE:8793 Stock Report

Last Price

JP¥1.95k

Market Cap

JP¥41.9b

7D

-3.0%

1Y

-1.3%

Updated

14 May, 2022

Data

Company Financials +
8793 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends5/6

8793 Stock Overview

NEC Capital Solutions Limited provides financial services in Japan.

NEC Capital Solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NEC Capital Solutions
Historical stock prices
Current Share PriceJP¥1,948.00
52 Week HighJP¥2,219.00
52 Week LowJP¥1,914.00
Beta0.62
1 Month Change-5.71%
3 Month Change-9.69%
1 Year Change-1.32%
3 Year Change12.80%
5 Year Change13.06%
Change since IPO-19.84%

Recent News & Updates

Shareholder Returns

8793JP Diversified FinancialJP Market
7D-3.0%-2.4%-3.6%
1Y-1.3%3.3%-3.3%

Return vs Industry: 8793 underperformed the JP Diversified Financial industry which returned 3.3% over the past year.

Return vs Market: 8793 exceeded the JP Market which returned -3.3% over the past year.

Price Volatility

Is 8793's price volatile compared to industry and market?
8793 volatility
8793 Average Weekly Movement3.3%
Diversified Financial Industry Average Movement4.3%
Market Average Movement4.5%
10% most volatile stocks in JP Market8.9%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 8793 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 8793's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1970811Tomoo Imazekihttps://www.necap.co.jp

NEC Capital Solutions Limited provides financial services in Japan. It operates through Leasing and Installment Sales, Finance, RISA, and Other segments. The Leasing and Installment Sales segment engages in the leasing and rental of information devices and office equipment, and industrial and construction machinery, as well as installment sales business.

NEC Capital Solutions Fundamentals Summary

How do NEC Capital Solutions's earnings and revenue compare to its market cap?
8793 fundamental statistics
Market CapJP¥41.94b
Earnings (TTM)JP¥6.94b
Revenue (TTM)JP¥249.91b

6.0x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8793 income statement (TTM)
RevenueJP¥249.91b
Cost of RevenueJP¥218.21b
Gross ProfitJP¥31.70b
Other ExpensesJP¥24.76b
EarningsJP¥6.94b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)322.31
Gross Margin12.69%
Net Profit Margin2.78%
Debt/Equity Ratio692.0%

How did 8793 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

23%

Payout Ratio

Valuation

Is NEC Capital Solutions 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


37.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8793 (¥1948) is trading below our estimate of fair value (¥3112.72)

Significantly Below Fair Value: 8793 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8793 is good value based on its PE Ratio (6x) compared to the JP Diversified Financial industry average (10.4x).

PE vs Market: 8793 is good value based on its PE Ratio (6x) compared to the JP market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: 8793 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 8793 is good value based on its PB Ratio (0.4x) compared to the JP Diversified Financial industry average (0.8x).


Future Growth

How is NEC Capital Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

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


3.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8793's forecast earnings growth (3.9% per year) is above the savings rate (0.02%).

Earnings vs Market: 8793's earnings (3.9% per year) are forecast to grow slower than the JP market (8% per year).

High Growth Earnings: 8793's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8793's revenue (0.4% per year) is forecast to grow slower than the JP market (4.3% per year).

High Growth Revenue: 8793's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8793's Return on Equity is forecast to be low in 3 years time (6.6%).


Past Performance

How has NEC Capital Solutions 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


0.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8793 has high quality earnings.

Growing Profit Margin: 8793's current net profit margins (2.8%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: 8793's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: 8793's earnings growth over the past year (68.5%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: 8793 earnings growth over the past year (68.5%) exceeded the Diversified Financial industry 12.2%.


Return on Equity

High ROE: 8793's Return on Equity (7.5%) is considered low.


Financial Health

How is NEC Capital Solutions'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: 8793's short term assets (¥899.0B) exceed its short term liabilities (¥497.9B).

Long Term Liabilities: 8793's short term assets (¥899.0B) exceed its long term liabilities (¥411.0B).


Debt to Equity History and Analysis

Debt Level: 8793's net debt to equity ratio (661%) is considered high.

Reducing Debt: 8793's debt to equity ratio has increased from 648.9% to 692% over the past 5 years.

Debt Coverage: 8793's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: 8793 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is NEC Capital Solutions's 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


3.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8793's dividend (3.8%) is higher than the bottom 25% of dividend payers in the JP market (1.61%).

High Dividend: 8793's dividend (3.8%) is in the top 25% of dividend payers in the JP market (3.6%)


Stability and Growth of Payments

Stable Dividend: 8793's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8793's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23%), 8793's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (3.5%), 8793'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?

4.9yrs

Average management tenure


CEO

Tomoo Imazeki

4.92yrs

Tenure

Mr. Tomoo Imazeki has been President of NEC Capital Solutions Limited since June 2017. Mr. Imazeki served as Senior Executive Officer of NEC Capital Solutions Limited since April 2015 until June 2017 and...


Leadership Team

Experienced Management: 8793's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 8793'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.


Top Shareholders

Company Information

NEC Capital Solutions Limited's employee growth, exchange listings and data sources


Key Information

  • Name: NEC Capital Solutions Limited
  • Ticker: 8793
  • Exchange: TSE
  • Founded: 1970
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Implied Market Cap: JP¥41.939b
  • Shares outstanding: 21.53m
  • Website: https://www.necap.co.jp

Number of Employees


Location

  • NEC Capital Solutions Limited
  • Shinagawa Intercity C Building
  • 2-15-3 Konan
  • Tokyo
  • 108-6219
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/14 00:00
End of Day Share Price2022/05/13 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.