Rengo Co., Ltd., together with its subsidiaries, manufactures and sells paperboard and packaging-related products in Japan and internationally. More Details
Solid track record, good value and pays a dividend.
Share Price & News
How has Rengo's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3941 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 3941's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 3941 exceeded the JP Packaging industry which returned -8.4% over the past year.
Return vs Market: 3941 underperformed the JP Market which returned 7.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Rengo's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Rengo undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 3941 (¥857) is trading below our estimate of fair value (¥1515.17)
Significantly Below Fair Value: 3941 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 3941 is good value based on its PE Ratio (8.2x) compared to the JP Packaging industry average (14.5x).
PE vs Market: 3941 is good value based on its PE Ratio (8.2x) compared to the JP market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: 3941 is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: 3941 is overvalued based on its PB Ratio (0.7x) compared to the JP Packaging industry average (0.5x).
How is Rengo forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3941's forecast earnings growth (5.1% per year) is above the savings rate (0%).
Earnings vs Market: 3941's earnings (5.1% per year) are forecast to grow slower than the JP market (17.7% per year).
High Growth Earnings: 3941's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3941's revenue (2% per year) is forecast to grow slower than the JP market (5.6% per year).
High Growth Revenue: 3941's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 3941's Return on Equity is forecast to be low in 3 years time (9.2%).
How has Rengo performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3941 has high quality earnings.
Growing Profit Margin: 3941's current net profit margins (3.8%) are higher than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: 3941's earnings have grown significantly by 21.6% per year over the past 5 years.
Accelerating Growth: 3941's earnings growth over the past year (23.1%) exceeds its 5-year average (21.6% per year).
Earnings vs Industry: 3941 earnings growth over the past year (23.1%) exceeded the Packaging industry 11%.
Return on Equity
High ROE: 3941's Return on Equity (8.7%) is considered low.
How is Rengo's financial position?
Financial Position Analysis
Short Term Liabilities: 3941's short term assets (¥297.9B) exceed its short term liabilities (¥289.3B).
Long Term Liabilities: 3941's short term assets (¥297.9B) exceed its long term liabilities (¥245.4B).
Debt to Equity History and Analysis
Debt Level: 3941's debt to equity ratio (108.5%) is considered high.
Reducing Debt: 3941's debt to equity ratio has reduced from 122.5% to 108.5% over the past 5 years.
Debt Coverage: 3941's debt is not well covered by operating cash flow (18.3%).
Interest Coverage: 3941 earns more interest than it pays, so coverage of interest payments is not a concern.
What is Rengo current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 3941's dividend (2.8%) is higher than the bottom 25% of dividend payers in the JP market (1.22%).
High Dividend: 3941's dividend (2.8%) is low compared to the top 25% of dividend payers in the JP market (2.96%).
Stability and Growth of Payments
Stable Dividend: 3941's dividends per share have been stable in the past 10 years.
Growing Dividend: 3941's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.9%), 3941'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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Mr. Kiyoshi Otsubo serves as the Chairman and Chief Executive Officer of Rengo Co. Ltd. He was President of Rengo Co. Ltd. until 2020. Mr. Otsubo serves as a Director at Nihon Matai Co., Ltd. and Represe...
CEO Compensation Analysis
Compensation vs Market: Kiyoshi's total compensation ($USD0.00) is below average for companies of similar size in the JP market ($USD1.67M).
Compensation vs Earnings: Kiyoshi's compensation has been consistent with company performance over the past year.
|Chairman & CEO||no data||JP¥119.00m||0.063% |
|President||no data||no data||0.030% |
|Executive VP & Representative Director||no data||no data||0.25% |
|Executive VP & Representative Director||no data||no data||0.035% |
|Senior Managing Executive Officer & Director||no data||no data||0.028% |
|Senior Managing Executive Officer & Director||no data||no data||0.028% |
|Senior Managing Executive Officer & Director||no data||no data||0.029% |
|Executive VP & Representative Director||no data||no data||0.027% |
|Independent Outside Director||1.58yrs||no data||no data|
|Full-Time Audit & Supervisory Board Member||no data||no data||0.026% |
|Independent Outside Director||2.58yrs||no data||no data|
|Independent Outside Director||1yr||no data||no data|
Experienced Board: 3941's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Rengo Co., Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Rengo Co., Ltd.
- Ticker: 3941
- Exchange: TSE
- Founded: 1909
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: JP¥212.925b
- Shares outstanding: 247.59m
- Website: https://www.rengo.co.jp
Number of Employees
- Rengo Co., Ltd.
- Nakanoshima Central Tower
- 25-27 Floors
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|3941||TSE (The Tokyo Stock Exchange)||Yes||Common Stock||JP||JPY||Jan 1992|
Rengo Co., Ltd., together with its subsidiaries, manufactures and sells paperboard and packaging-related products in Japan and internationally. The company operates through four segments: Paperboard and Pa...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/01/22 08:02|
|End of Day Share Price||2021/01/22 00:00|
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.