TSE:5194

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Sagami Rubber Industries

Market Cap

JP¥11.3b

Last Updated

2021/06/18 08:12 UTC

Data Sources

Company Financials +

Executive Summary

Sagami Rubber Industries Co., Ltd. primarily manufactures and supplies condoms. More Details


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Sagami Rubber Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5194 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 5194's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

5194

1.3%

JP Personal Products

0.4%

JP Market


1 Year Return

-34.5%

5194

2.0%

JP Personal Products

22.6%

JP Market

Return vs Industry: 5194 underperformed the JP Personal Products industry which returned 2% over the past year.

Return vs Market: 5194 underperformed the JP Market which returned 22.6% over the past year.


Shareholder returns

5194IndustryMarket
7 Day-1.1%1.3%0.4%
30 Day-2.6%5.4%3.6%
90 Day-9.8%-0.7%-2.3%
1 Year-33.9%-34.5%3.3%2.0%25.3%22.6%
3 Year-60.4%-61.3%-15.1%-18.2%20.3%12.1%
5 Year78.5%72.1%88.8%76.3%78.4%58.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sagami Rubber Industries undervalued compared to its fair value and its price relative to the market?

18.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5194 (¥1038) is trading above our estimate of fair value (¥152.95)

Significantly Below Fair Value: 5194 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5194 is good value based on its PE Ratio (18.8x) compared to the JP Personal Products industry average (35.8x).

PE vs Market: 5194 is poor value based on its PE Ratio (18.8x) compared to the JP market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: 5194 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 5194 is good value based on its PB Ratio (1.5x) compared to the JP Personal Products industry average (3x).


Future Growth

How is Sagami Rubber Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5194's forecast earnings growth (20.6% per year) is above the savings rate (0%).

Earnings vs Market: 5194's earnings (20.6% per year) are forecast to grow faster than the JP market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 5194's revenue (11.3% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 5194's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5194's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

How has Sagami Rubber Industries performed over the past 5 years?

-5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5194 has high quality earnings.

Growing Profit Margin: 5194's current net profit margins (10.7%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: 5194's earnings have declined by 5.1% per year over the past 5 years.

Accelerating Growth: 5194's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5194 had negative earnings growth (-33.7%) over the past year, making it difficult to compare to the Personal Products industry average (-17.7%).


Return on Equity

High ROE: 5194's Return on Equity (7.8%) is considered low.


Financial Health

How is Sagami Rubber Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 5194's short term assets (¥5.1B) do not cover its short term liabilities (¥6.2B).

Long Term Liabilities: 5194's short term assets (¥5.1B) exceed its long term liabilities (¥2.0B).


Debt to Equity History and Analysis

Debt Level: 5194's debt to equity ratio (85.4%) is considered high.

Reducing Debt: 5194's debt to equity ratio has increased from 84.4% to 85.4% over the past 5 years.

Debt Coverage: 5194's debt is well covered by operating cash flow (21.8%).

Interest Coverage: 5194's interest payments on its debt are well covered by EBIT (43.4x coverage).


Balance Sheet


Dividend

What is Sagami Rubber Industries's current dividend yield, its reliability and sustainability?

0.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5194's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.31%).

High Dividend: 5194's dividend (0.96%) is low compared to the top 25% of dividend payers in the JP market (2.99%).


Stability and Growth of Payments

Stable Dividend: 5194's dividends per share have been stable in the past 10 years.

Growing Dividend: 5194's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), 5194'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?

12.9yrs

Average management tenure


CEO

Ichiro Oato (72 yo)

33.42yrs

Tenure

Ichiro Oato has been the President of Sagami Rubber Industries Co. Ltd. since January 1988; Sagami Manufacturers Sdn. Bhd. since September 2007 and K.K. Radiatex since January 2008. Ichiro Oato joined Saga...


Leadership Team

Experienced Management: 5194's management team is seasoned and experienced (12.9 years average tenure).


Board Members

Experienced Board: 5194's board of directors are seasoned and experienced ( 12 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

Sagami Rubber Industries Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sagami Rubber Industries Co., Ltd.
  • Ticker: 5194
  • Exchange: TSE
  • Founded: 1934
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: JP¥11.270b
  • Shares outstanding: 10.86m
  • Website: https://www.sagami-gomu.co.jp

Number of Employees


Location

  • Sagami Rubber Industries Co., Ltd.
  • 2-1, Moto-cho
  • Atsugi
  • Kanagawa
  • 243-0002
  • Japan

Listings


Biography

Sagami Rubber Industries Co., Ltd. primarily manufactures and supplies condoms. The company offers polyurethane and latex condoms, external catheters, and probe covers; plastic films; and healthcare produc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 08:12
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.