JASDAQ:7808

Stock Analysis Report

Executive Summary

C.S. Lumber Co., Inc manufactures and sells timber, building materials, and sub-materials in Japan.


Snowflake Analysis

Good value with proven track record.

Share Price & News

How has C.S. Lumber's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7808 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

7808

-2.1%

JP Forestry

-1.7%

JP Market


1 Year Return

51.3%

7808

-10.9%

JP Forestry

4.7%

JP Market

Return vs Industry: 7808 exceeded the JP Forestry industry which returned -10.9% over the past year.

Return vs Market: 7808 exceeded the JP Market which returned 4.7% over the past year.


Shareholder returns

7808IndustryMarket
7 Day-4.2%-2.1%-1.7%
30 Day-16.9%-4.3%-3.1%
90 Day28.0%-7.4%-1.5%
1 Year54.6%51.3%-9.1%-10.9%7.3%4.7%
3 Yearn/a-2.9%-7.8%17.2%9.3%
5 Yearn/a14.1%3.9%26.8%13.6%

Price Volatility Vs. Market

How volatile is C.S. Lumber's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is C.S. Lumber 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: 7808 (¥1510) is trading below our estimate of fair value (¥4497.87)

Significantly Below Fair Value: 7808 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7808 is good value based on its PE Ratio (5x) compared to the Forestry industry average (10.6x).

PE vs Market: 7808 is good value based on its PE Ratio (5x) compared to the JP market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: 7808's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 7808 is overvalued based on its PB Ratio (1x) compared to the JP Forestry industry average (0.7x).


Next Steps

Future Growth

How is C.S. Lumber forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7808's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: 7808's earnings are forecast to decline over the next 3 years (-2.4% per year).

High Growth Earnings: 7808's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 7808's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: 7808's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 7808's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has C.S. Lumber performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7808 has a high level of non-cash earnings.

Growing Profit Margin: 7808's current net profit margins (3.3%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 7808's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: 7808's earnings growth over the past year (84.1%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: 7808 earnings growth over the past year (84.1%) exceeded the Forestry industry 33.5%.


Return on Equity

High ROE: Whilst 7808's Return on Equity (20.09%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is C.S. Lumber's financial position?


Financial Position Analysis

Short Term Liabilities: 7808's short term assets (¥5.4B) do not cover its short term liabilities (¥5.6B).

Long Term Liabilities: 7808's short term assets (¥5.4B) exceed its long term liabilities (¥5.1B).


Debt to Equity History and Analysis

Debt Level: 7808's debt to equity ratio (209.8%) is considered high.

Reducing Debt: Insufficient data to determine if 7808's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 7808's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: 7808's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet

Inventory Level: 7808 has a high level of physical assets or inventory.

Debt Coverage by Assets: 7808's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is C.S. Lumber's current dividend yield, its reliability and sustainability?

1.46%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateMay 28 2020Dividend Pay DateAug 29 202093 days from Ex DividendBuy in the next 93 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 7808's dividend (1.46%) is higher than the bottom 25% of dividend payers in the JP market (1.39%).

High Dividend: 7808's dividend (1.46%) is low compared to the top 25% of dividend payers in the JP market (3.1%).


Stability and Growth of Payments

Stable Dividend: 7808 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 7808 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.4%), 7808's dividend payments are thoroughly 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

C.S. Lumber has no CEO, or we have no data on them.


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 been diluted in the past year, with total shares outstanding growing by 9.9%.


Top Shareholders

Company Information

C.S. Lumber Co., Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: C.S. Lumber Co., Inc
  • Ticker: 7808
  • Exchange: JASDAQ
  • Founded: 1984
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: JP¥2.744b
  • Shares outstanding: 1.82m
  • Website: https://www.c-s-lumber.co.jp

Number of Employees


Location

  • C.S. Lumber Co., Inc
  • 1-16-3 Makuhari-Hongo Aiba Building
  • Chiba
  • Chiba
  • 262-0033
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7808JASDAQ (TSE JASDAQ)YesCommon SharesJPJPYNov 2017

Biography

C.S. Lumber Co., Inc manufactures and sells timber, building materials, and sub-materials in Japan. It also operates as a general wooden building contractor; constructs standard wooden houses; transports pre-cut products; leases and manages real estate properties; and provides real estate brokerage services. The company was founded in 1984 and is headquartered in Chiba, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 16:07
End of Day Share Price2020/02/21 00:00
Earnings2019/05/31
Annual Earnings2019/05/31


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.