TRANSACTION CO.,Ltd. plans, designs, manufactures, and sells consumer products in Japan and internationally. The company offers event products, such as T-shirts, towels, and penlights; animation or game goods; sales promotion goods; notebooks; bags and tumbler bottles, and stationery or leather accessory, as well as health care and beauty miscellaneous goods products, such as masks and mirror pouches under the MARKLESS STYLE brand; eco bags under the Motteru brand name; belt stopping bags under the gowell brand; and petware and goods under the Calulu brand name.
TRANSACTIONLtd Fundamentals Summary
How do TRANSACTIONLtd's earnings and revenue compare to its market cap?
Is 7818 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 7818?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for 7818. This is calculated by dividing 7818's market cap by their current
preferred multiple.
What is 7818's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
JP¥32.42b
7818 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.
Price-To-Earnings vs Industry: 7818 is good value based on its Price-To-Earnings Ratio (17.1x) compared to the JP Household Products industry average (23.4x)
Price to Earnings Ratio vs Fair Ratio
What is 7818'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.
7818 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
17.1x
Fair PE Ratio
17.3x
Price-To-Earnings vs Fair Ratio: 7818 is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).
Share Price vs Fair Value
What is the Fair Price of 7818 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 7818 (¥1114) is trading below our estimate of fair value (¥3007.46)
Significantly Below Fair Value: 7818 is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: 7818 is poor value based on its PEG Ratio (1.3x)
Discover undervalued companies
Future Growth
How is TRANSACTIONLtd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
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
13.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7818's forecast earnings growth (13.6% per year) is above the savings rate (0.02%).
Earnings vs Market: 7818's earnings (13.6% per year) are forecast to grow faster than the JP market (9% per year).
High Growth Earnings: 7818's earnings are forecast to grow, but not significantly.
Revenue vs Market: 7818's revenue (9.9% per year) is forecast to grow faster than the JP market (4.4% per year).
High Growth Revenue: 7818's revenue (9.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 7818's Return on Equity is forecast to be low in 3 years time (17%).
Discover growth companies
Past Performance
How has TRANSACTIONLtd performed over the past 5 years?
Past Performance Score
2/6
Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
18.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7818 has high quality earnings.
Growing Profit Margin: 7818's current net profit margins (11.1%) are lower than last year (11.2%).
Past Earnings Growth Analysis
Earnings Trend: 7818's earnings have grown by 18.1% per year over the past 5 years.
Accelerating Growth: 7818's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 7818 had negative earnings growth (-11%) over the past year, making it difficult to compare to the Household Products industry average (-7%).
Return on Equity
High ROE: 7818's Return on Equity (16.1%) is considered low.
Discover strong past performing companies
Financial Health
How is TRANSACTIONLtd'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: 7818's short term assets (¥11.3B) exceed its short term liabilities (¥2.3B).
Long Term Liabilities: 7818's short term assets (¥11.3B) exceed its long term liabilities (¥682.0M).
Debt to Equity History and Analysis
Debt Level: 7818 has more cash than its total debt.
Reducing Debt: 7818's debt to equity ratio has reduced from 7% to 5.1% over the past 5 years.
Debt Coverage: 7818's debt is well covered by operating cash flow (403.3%).
Interest Coverage: 7818 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Discover healthy companies
Dividend
What is TRANSACTIONLtd 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
2.15%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 7818's dividend (2.15%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).
High Dividend: 7818's dividend (2.15%) is low compared to the top 25% of dividend payers in the JP market (3.74%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (33.7%), 7818's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (29.5%), 7818'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?
5.8yrs
Average management tenure
CEO
Satoshi Ishikawa (60 yo)
35.42yrs
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...
Leadership Team
Experienced Management: 7818's management team is seasoned and experienced (5.8 years average tenure).
Board Members
Experienced Board: 7818's board of directors are not considered experienced ( 2.4 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
TRANSACTION CO.,Ltd.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/06/26 00:00
End of Day Share Price
2022/06/24 00:00
Earnings
2022/02/28
Annual Earnings
2021/08/31
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.