AS ONE (TSE:7476) - Share price, News & Analysis

Q: What is the Fair Price of 7476 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7476 (¥5650) is trading below our estimate of [[fair value]] (¥6250.06)

7476 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

7476 Stock Overview

AS ONE Corporation engages in the sale of research instruments and equipment, nursing and care products, and other scientific instruments in Japan and internationally.

Rewards

Trading at 9.6% below our estimate of its fair value

Earnings are forecast to grow 9.31% per year

Earnings grew by 14.4% over the past year

Analysts in good agreement that stock price will rise by 56.9%

Risk Analysis

Unstable dividend track record

AS ONE Competitors

Ship Healthcare Holdings

TSE:3360

JP¥247.6b

Suzuken

TSE:9987

JP¥287.6b

Alfresa Holdings

TSE:2784

JP¥339.4b

Toho Holdings

TSE:8129

JP¥134.2b

Price History & Performance

Summary of all time highs, changes and price drops for AS ONE
Historical stock prices
Current Share Price	JP¥5,650.00
52 Week High	JP¥8,710.00
52 Week Low	JP¥5,320.00
Beta	0.53
1 Month Change	-15.04%
3 Month Change	-1.57%
1 Year Change	-34.15%
3 Year Change	26.26%
5 Year Change	84.34%
Change since IPO	873.14%

Shareholder Returns

	7476	JP Healthcare	JP Market
7D	-5.8%	-2.0%	-1.1%
1Y	-34.1%	-13.4%	-9.1%

Return vs Industry: 7476 underperformed the JP Healthcare industry which returned -13.4% over the past year.

Return vs Market: 7476 underperformed the JP Market which returned -9.1% over the past year.

Price Volatility

Is 7476's price volatile compared to industry and market?
7476 volatility
7476 Average Weekly Movement	4.4%
Healthcare Industry Average Movement	3.4%
Market Average Movement	3.5%
10% most volatile stocks in JP Market	7.4%
10% least volatile stocks in JP Market	1.8%

Stable Share Price: 7476 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7476's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1933	648	Takuji Iuchi	https://www.as-1.co.jp

AS ONE Corporation engages in the sale of research instruments and equipment, nursing and care products, and other scientific instruments in Japan and internationally. It offers scientific instruments comprising temperature/humidity control and measuring/surveying instruments, as well as universal products used for cooling, heating, mixing, absorption, pressurization, and conveyance; microscopes, glass slides, and tissue culture products for biotechnology; magnifying glasses indispensable for precision work, plus filters, and dispensing devices required for analysis technology; equipment indispensable for research facilities, such as experimental platforms, fume hoods, and pharmaceutical depositories, as well as storage equipment, wagons, laboratory chairs, and conveyance equipment; containers required for storage or preservation of samples, reagents, materials, and others; glass or plastic beakers, flask indispensables, hoses, tubes, and joints; tapes and labels; and timers, packaging machines, tools, office supplies, and other equipment for laboratories. The company also provides industrial instruments, such as dehumidifying storage products; equipment for organization, conveyance, etc.; equipment for sterilization/disinfecting and cleaning, including ultrasonic cleaners for washing/drying, detergents, and drying tools; glasses, masks, and gloves; and tools and containers used in clean rooms, as well as dust-proof and anti-static products comprising clean room clothes and mats indispensable.

AS ONE Fundamentals Summary

How do AS ONE's earnings and revenue compare to its market cap?
7476 fundamental statistics
Market Cap	JP¥217.98b
Earnings (TTM)	JP¥7.31b
Revenue (TTM)	JP¥87.36b

28.8x

P/E Ratio

2.4x

P/S Ratio

Is 7476 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7476 income statement (TTM)
Revenue	JP¥87.36b
Cost of Revenue	JP¥61.54b
Gross Profit	JP¥25.82b
Other Expenses	JP¥18.51b
Earnings	JP¥7.31b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 31, 2022

Earnings per share (EPS)	195.92
Gross Margin	29.56%
Net Profit Margin	8.37%
Debt/Equity Ratio	4.2%

How did 7476 perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

50%

Payout Ratio

Does 7476 pay a reliable dividends?

See 7476 dividend history and benchmarks

When do you need to buy 7476 by to receive an upcoming dividend?
AS ONE dividend dates
Ex Dividend Date	Sep 29 2022
Dividend Pay Date	Dec 02 2022
Days until Ex dividend	3 days
Days until Dividend pay date	67 days

Does 7476 pay a reliable dividends?

See 7476 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 7476 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7476?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 7476. This is calculated by dividing 7476's market cap by their current preferred multiple.
What is 7476's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥217.98b

7476 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	18x
PEG Ratio	3.1x

Price to Earnings Ratio vs Peers

How does 7476's PE Ratio compare to its peers?

7476 PE Ratio vs Peers

The above table shows the PE ratio for 7476 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.4x
3360 Ship Healthcare Holdings	20.3x	8.5%	JP¥247.6b
9987 Suzuken	16.4x	8.3%	JP¥287.6b
2784 Alfresa Holdings	10.9x	0.8%	JP¥339.4b
8129 Toho Holdings	9.8x	1.4%	JP¥134.2b
7476 AS ONE	28.8x	9.3%	JP¥218.0b

Price-To-Earnings vs Peers: 7476 is expensive based on its Price-To-Earnings Ratio (28.8x) compared to the peer average (14.4x).

Price to Earnings Ratio vs Industry

How does 7476's PE Ratio compare vs other companies in the JP Healthcare Industry?

Price-To-Earnings vs Industry: 7476 is expensive based on its Price-To-Earnings Ratio (28.8x) compared to the JP Healthcare industry average (11.9x)

Price to Earnings Ratio vs Fair Ratio

What is 7476's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7476 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	28.8x
Fair PE Ratio	21.7x

Price-To-Earnings vs Fair Ratio: 7476 is expensive based on its Price-To-Earnings Ratio (28.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.7x).

Share Price vs Fair Value

What is the Fair Price of 7476 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7476 (¥5650) is trading below our estimate of fair value (¥6250.06)

Significantly Below Fair Value: 7476 is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is AS ONE forecast to perform in the next 1 to 3 years based on estimates from 4 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

9.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7476's forecast earnings growth (9.3% per year) is above the savings rate (0.04%).

Earnings vs Market: 7476's earnings (9.3% per year) are forecast to grow faster than the JP market (8.4% per year).

High Growth Earnings: 7476's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7476's revenue (6.6% per year) is forecast to grow faster than the JP market (4.2% per year).

High Growth Revenue: 7476's revenue (6.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 7476's Return on Equity is forecast to be low in 3 years time (12.8%).

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Past Performance

How has AS ONE 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

9.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7476 has high quality earnings.

Growing Profit Margin: 7476's current net profit margins (8.4%) are higher than last year (7.5%).

Past Earnings Growth Analysis

Earnings Trend: 7476's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: 7476's earnings growth over the past year (14.4%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: 7476 earnings growth over the past year (14.4%) exceeded the Healthcare industry 12%.

Return on Equity

High ROE: 7476's Return on Equity (11.3%) is considered low.

Discover strong past performing companies

Financial Health

How is AS ONE's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 7476's short term assets (¥57.0B) exceed its short term liabilities (¥22.8B).

Long Term Liabilities: 7476's short term assets (¥57.0B) exceed its long term liabilities (¥3.5B).

Debt to Equity History and Analysis

Debt Level: 7476 has more cash than its total debt.

Reducing Debt: 7476's debt to equity ratio has reduced from 6.4% to 4.2% over the past 5 years.

Debt Coverage: 7476's debt is well covered by operating cash flow (327.4%).

Interest Coverage: 7476 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is AS ONE 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
Cash Flow Coverage

1.68%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 7476's dividend (1.68%) is higher than the bottom 25% of dividend payers in the JP market (1.65%).

High Dividend: 7476's dividend (1.68%) is low compared to the top 25% of dividend payers in the JP market (3.67%).

Stability and Growth of Payments

Stable Dividend: 7476's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7476's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.6%), 7476's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46.1%), 7476's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.9yrs

Average management tenure

CEO

Takuji Iuchi (54 yo)

13.25yrs

Tenure

JP¥107,000,000

Compensation

Mr. Takuji Iuchi has been the President of AS One Corp. since June 2009 and Representative Director since June 2005. Mr. Iuchi has been the President of AS One (Shanghai) Corporation since April 2007. Mr....

Leadership Team

Experienced Management: 7476's management team is seasoned and experienced (5.9 years average tenure).

Board Members

Experienced Board: 7476's board of directors are considered experienced (4.3 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

What is the ownership structure of 7476?
Owner Type	Number of Shares	Ownership Percentage
Hedge Funds	1,991,694	5.3%
Individual Insiders	7,932,376	21.3%
General Public	13,187,019	35.3%
Institutions	14,214,945	38.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 61.64% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
15.99%	Hideo Iuchi	5,969,384	¥33.7b	0%	no data
5.34%	Kabouter Management, LLC	1,991,694	¥11.3b	0%	4.84%
4.96%	Resona Bank Ltd., Asset Management Arm	1,852,850	¥10.5b	0%	1.84%
3.84%	First Eagle Investment Management, LLC	1,433,240	¥8.1b	-0.97%	0.1%
3.37%	Invesco Ltd.	1,256,426	¥7.1b	3.34%	0.02%
3.12%	Mizuho Financial Group, Inc., Asset Management Arm	1,165,900	¥6.6b	-13.49%	0.2%
2.74%	J.P. Morgan Asset Management, Inc.	1,021,200	¥5.8b	0%	0.01%
2.6%	Nomura Asset Management Co., Ltd.	971,900	¥5.5b	-0.45%	0.02%
2.57%	Ikue Iuchi	959,886	¥5.4b	0%	no data
2.29%	The Vanguard Group, Inc.	853,666	¥4.8b	0.78%	no data
2.07%	Yuki Ikejiri	772,806	¥4.4b	0%	no data
2.05%	Asset Management One Co., Ltd.	764,000	¥4.3b	-3.01%	0.04%
1.28%	BlackRock, Inc.	476,100	¥2.7b	-0.67%	no data
1.19%	Daiwa Asset Management Co. Ltd.	443,000	¥2.5b	0.2%	0.02%
1.18%	Nikko Asset Management Co., Ltd.	441,100	¥2.5b	-1.08%	0.01%
1.15%	Norges Bank Investment Management	427,799	¥2.4b	0%	no data
1.11%	Resona Asset Management Co., Ltd.	415,400	¥2.3b	0%	0.8%
0.98%	Massachusetts Financial Services Company	366,600	¥2.1b	0%	no data
0.96%	abrdn plc	358,300	¥2.0b	0.82%	0.01%
0.8%	Royce & Associates, LP	299,600	¥1.7b	-10.38%	0.11%
0.54%	Neuberger Berman Investment Advisers LLC	202,500	¥1.1b	-1.32%	0.01%
0.49%	Mitsubishi UFJ Kokusai Asset Management Co., Ltd.	181,200	¥1.0b	0.67%	0.01%
0.4%	Takuji Iuchi	148,000	¥836.2m	1.93%	no data
0.34%	First Sentier Investors (Australia) IM Ltd	127,800	¥722.1m	0%	0.01%
0.29%	Sumitomo Mitsui DS Asset Management Company, Limited	108,100	¥610.8m	-0.18%	0.02%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
IUSD.F	OTCPK (Pink Sheets LLC)	Yes	Common Stock	US	USD	Nov 1995
7476	TSE (The Tokyo Stock Exchange)	Yes	Common Stock	JP	JPY	Nov 1995

Data	Last Updated (UTC time)
Company Analysis	2022/09/26 00:00
End of Day Share Price	2022/09/26 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31