TSE:4912

Stock Analysis Report

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Market Cap

JP¥556.4b

Last Updated

2021/07/30 16:14 UTC

Data Sources

Company Financials +

Executive Summary

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Lion's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4912 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 4912's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.3%

4912

-1.5%

JP Household Products

1.0%

JP Market


1 Year Return

-30.6%

4912

-13.4%

JP Household Products

27.3%

JP Market

Return vs Industry: 4912 underperformed the JP Household Products industry which returned -13.4% over the past year.

Return vs Market: 4912 underperformed the JP Market which returned 27.3% over the past year.


Shareholder returns

4912IndustryMarket
7 Day-3.3%-1.5%1.0%
30 Day-0.05%-0.9%-1.1%
90 Day-7.6%-0.2%1.3%
1 Year-29.8%-30.6%-12.5%-13.4%30.0%27.3%
3 Year-1.3%-4.2%12.6%9.1%19.0%10.8%
5 Year36.8%30.5%77.5%69.1%67.6%49.1%

Long-Term Price Volatility Vs. Market

How volatile is Lion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

40.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4912 (¥1894) is trading below our estimate of fair value (¥3165.99)

Significantly Below Fair Value: 4912 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4912 is poor value based on its PE Ratio (24.7x) compared to the JP Household Products industry average (22.1x).

PE vs Market: 4912 is poor value based on its PE Ratio (24.7x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 4912 is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: 4912's PB Ratio (2.3x) is in line with the JP Household Products industry average.


Future Growth

How is Lion forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4912's forecast earnings growth (6.1% per year) is above the savings rate (0%).

Earnings vs Market: 4912's earnings (6.1% per year) are forecast to grow slower than the JP market (12% per year).

High Growth Earnings: 4912's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4912's revenue (3.6% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 4912's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4912's Return on Equity is forecast to be low in 3 years time (9.5%).


Past Performance

How has Lion performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4912 has a large one-off gain of ¥7.2B impacting its March 31 2021 financial results.

Growing Profit Margin: 4912's current net profit margins (6.3%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: 4912's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: 4912's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4912 had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Household Products industry average (0.2%).


Return on Equity

High ROE: 4912's Return on Equity (9.7%) is considered low.


Financial Health

How is Lion's financial position?


Financial Position Analysis

Short Term Liabilities: 4912's short term assets (¥214.7B) exceed its short term liabilities (¥129.2B).

Long Term Liabilities: 4912's short term assets (¥214.7B) exceed its long term liabilities (¥22.7B).


Debt to Equity History and Analysis

Debt Level: 4912's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: 4912's debt to equity ratio has reduced from 8.1% to 0.8% over the past 5 years.

Debt Coverage: 4912's debt is well covered by operating cash flow (1533%).

Interest Coverage: 4912 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lion current dividend yield, its reliability and sustainability?

1.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4912's dividend (1.27%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.33%).

High Dividend: 4912's dividend (1.27%) is low compared to the top 25% of dividend payers in the JP market (3%).


Stability and Growth of Payments

Stable Dividend: 4912's dividend payments have been volatile in the past 10 years.

Growing Dividend: 4912's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30%), 4912's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Itsuo Hama (67 yo)

7.5yrs

Tenure

JP¥158,000,000

Compensation

Mr. Itsuo Hama serves as the Chairman of the Board at Lion Corporation since March 2016 and its Chief Executive Officer since January 2014. Mr. Hama has been President, Executive Officer and Overall Risk M...


CEO Compensation Analysis

Compensation vs Market: Itsuo's total compensation ($USD1.44M) is about average for companies of similar size in the JP market ($USD1.18M).

Compensation vs Earnings: Itsuo's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 4912's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 4912's board of directors are considered experienced (3.8 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Lion Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lion Corporation
  • Ticker: 4912
  • Exchange: TSE
  • Founded: 1891
  • Industry: Household Products
  • Sector: Household
  • Market Cap: JP¥556.443b
  • Shares outstanding: 290.72m
  • Website: https://www.lion.co.jp

Number of Employees


Location

  • Lion Corporation
  • 3-7, Honjo 1-chome
  • Sumida-ku
  • Tokyo
  • 130-8644
  • Japan

Listings


Biography

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. It operates through three segments: Consumer Products Business, Industrial Products Business, and Over...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 16:14
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.