TSE:7818

Stock Analysis Report

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Market Cap

JP¥39.5b

Last Updated

2021/06/22 08:04 UTC

Data Sources

Company Financials +

Executive Summary

TRANSACTION CO.,Ltd. plans, designs, manufactures, and sells consumer products. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 7818 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7818's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

7818

-3.0%

JP Household Products

-3.7%

JP Market


1 Year Return

34.9%

7818

-8.3%

JP Household Products

18.5%

JP Market

Return vs Industry: 7818 exceeded the JP Household Products industry which returned -6.8% over the past year.

Return vs Market: 7818 exceeded the JP Market which returned 21.8% over the past year.


Shareholder returns

7818IndustryMarket
7 Day1.2%-3.0%-3.7%
30 Day-0.4%-3.5%-0.07%
90 Day17.2%-7.5%-1.4%
1 Year37.1%34.9%-7.5%-8.3%21.1%18.5%
3 Year47.5%40.7%12.9%9.5%17.7%9.7%
5 Year222.5%202.0%68.6%61.1%71.6%53.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7818 (¥1356) is trading below our estimate of fair value (¥2905.96)

Significantly Below Fair Value: 7818 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7818 is good value based on its PE Ratio (18.5x) compared to the JP Household Products industry average (21.8x).

PE vs Market: 7818 is poor value based on its PE Ratio (18.5x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 7818 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 7818 is overvalued based on its PB Ratio (3.8x) compared to the JP Household Products industry average (2.4x).


Future Growth

How is TRANSACTIONLtd forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7818's forecast earnings growth (5.8% per year) is above the savings rate (0%).

Earnings vs Market: 7818's earnings (5.8% per year) are forecast to grow slower than the JP market (12.8% per year).

High Growth Earnings: 7818's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7818's revenue (5.4% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 7818's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 7818's Return on Equity is forecast to be high in 3 years time


Past Performance

How has TRANSACTIONLtd performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7818 has high quality earnings.

Growing Profit Margin: 7818's current net profit margins (11.2%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 7818's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: 7818's earnings growth over the past year (61.5%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: 7818 earnings growth over the past year (61.5%) exceeded the Household Products industry 6.4%.


Return on Equity

High ROE: 7818's Return on Equity (20.4%) is considered high.


Financial Health

How is TRANSACTIONLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 7818's short term assets (¥9.9B) exceed its short term liabilities (¥2.1B).

Long Term Liabilities: 7818's short term assets (¥9.9B) exceed its long term liabilities (¥978.0M).


Debt to Equity History and Analysis

Debt Level: 7818's debt to equity ratio (9.7%) is considered satisfactory.

Reducing Debt: 7818's debt to equity ratio has reduced from 26.3% to 9.7% over the past 5 years.

Debt Coverage: 7818's debt is well covered by operating cash flow (196%).

Interest Coverage: 7818 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

1.35%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 22 2021Ex Dividend DateAug 30 2021Dividend Pay DateNov 09 202171 days from Ex DividendBuy in the next 69 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 7818's dividend (1.4%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 7818's dividend (1.4%) is low compared to the top 25% of dividend payers in the JP market (3.01%).


Stability and Growth of Payments

Stable Dividend: 7818's dividends per share have been stable in the past 10 years.

Growing Dividend: 7818's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), 7818'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?


CEO

Aoi Ishikawa (59 yo)

34.42yrs

Tenure

Mr. Satoshi Ishikawa has been the President of Transaction Co. Ltd. January 1987 and served as its Chief Operating Officer. Mr. Ishikawa Joined Jun Co. Ltd. Resigned Established Transaction Co., Ltd. in A...


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

TRANSACTION CO.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TRANSACTION CO.,Ltd.
  • Ticker: 7818
  • Exchange: TSE
  • Founded: 1987
  • Industry: Household Products
  • Sector: Household
  • Market Cap: JP¥39.466b
  • Shares outstanding: 29.10m
  • Website: https://www.trans-action.co.jp

Number of Employees


Location

  • TRANSACTION CO.,Ltd.
  • Shibuya New South Exit Building
  • 8th Floor
  • Tokyo
  • Japan

Listings


Biography

TRANSACTION CO.,Ltd. plans, designs, manufactures, and sells consumer products. The company offers eco-miscellaneous goods, including bags and tumbler bottles; wellness products that include electronic and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/22 08:04
End of Day Share Price2021/06/22 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.