TSE:7956

Stock Analysis Report

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Market Cap

JP¥364.3b

Last Updated

2021/07/30 16:22 UTC

Data Sources

Company Financials +

Executive Summary

Pigeon Corporation manufactures, sells, imports, and exports baby and child-care products, maternity items, women’s care products, home healthcare products, elder care products, etc. More Details

Rewards

Earnings are forecast to grow 11.64% per year

Pays a reliable dividend of 2.35%

Risk Analysis

No risks detected for 7956 from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 7956 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 7956's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

7956

-2.0%

JP Household Products

-0.4%

JP Market


1 Year Return

-23.1%

7956

-13.8%

JP Household Products

25.5%

JP Market

Return vs Industry: 7956 underperformed the JP Household Products industry which returned -13.4% over the past year.

Return vs Market: 7956 underperformed the JP Market which returned 27.3% over the past year.


Shareholder returns

7956IndustryMarket
7 Day-2.8%-2.0%-0.4%
30 Day0.2%-1.5%-2.2%
90 Day-15.0%-0.6%-0.05%
1 Year-21.5%-23.1%-12.9%-13.8%28.2%25.5%
3 Year-37.7%-41.0%12.4%8.9%17.4%9.3%
5 Year37.7%26.5%76.8%68.4%65.4%47.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

38.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7956 (¥3150) is trading above our estimate of fair value (¥2900.76)

Significantly Below Fair Value: 7956 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7956 is poor value based on its PE Ratio (38.5x) compared to the JP Household Products industry average (22.1x).

PE vs Market: 7956 is poor value based on its PE Ratio (38.5x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 7956 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: 7956 is overvalued based on its PB Ratio (5.4x) compared to the JP Household Products industry average (2.4x).


Future Growth

How is Pigeon forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7956's forecast earnings growth (11.6% per year) is above the savings rate (0%).

Earnings vs Market: 7956's earnings (11.6% per year) are forecast to grow slower than the JP market (12% per year).

High Growth Earnings: 7956's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7956's revenue (7% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 7956's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7956's Return on Equity is forecast to be low in 3 years time (18%).


Past Performance

How has Pigeon performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7956 has high quality earnings.

Growing Profit Margin: 7956's current net profit margins (10%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: 7956's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: 7956's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7956 had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Household Products industry average (0.2%).


Return on Equity

High ROE: 7956's Return on Equity (13.7%) is considered low.


Financial Health

How is Pigeon's financial position?


Financial Position Analysis

Short Term Liabilities: 7956's short term assets (¥64.1B) exceed its short term liabilities (¥15.5B).

Long Term Liabilities: 7956's short term assets (¥64.1B) exceed its long term liabilities (¥4.9B).


Debt to Equity History and Analysis

Debt Level: 7956 is debt free.

Reducing Debt: 7956 has no debt compared to 5 years ago when its debt to equity ratio was 12.2%.

Debt Coverage: 7956 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 7956 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

2.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 7956's dividend (2.35%) is higher than the bottom 25% of dividend payers in the JP market (1.33%).

High Dividend: 7956's dividend (2.35%) is low compared to the top 25% of dividend payers in the JP market (3%).


Stability and Growth of Payments

Stable Dividend: 7956's dividends per share have been stable in the past 10 years.

Growing Dividend: 7956's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.1%), 7956's payments are 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

Norimasa Kitazawa

2.5yrs

Tenure

Mr. Norimasa Kitazawa serves as a President at Pigeon Corporation since April 25, 2019 and had been its Chief Operating Officer since April 2019 until 2019. He serves as Chief Executive Officer at Pigeon C...


Leadership Team

Experienced Management: 7956's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 7956's board of directors are considered experienced (6.3 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

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Pigeon Corporation
  • Ticker: 7956
  • Exchange: TSE
  • Founded: 1949
  • Industry: Household Products
  • Sector: Household
  • Market Cap: JP¥364.290b
  • Shares outstanding: 119.64m
  • Website: https://www.pigeon.co.jp

Number of Employees


Location

  • Pigeon Corporation
  • 4-4, Nihonbashi Hisamatsu-cho
  • Chuo-ku
  • Tokyo
  • 103-8480
  • Japan

Listings


Biography

Pigeon Corporation manufactures, sells, imports, and exports baby and child-care products, maternity items, women’s care products, home healthcare products, elder care products, etc. in Japan and internati...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 16:22
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.