TSE:3941

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Executive Summary

Rengo Co., Ltd., together with its subsidiaries, manufactures and sells paperboard and packaging-related products in Japan and internationally. More Details


Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

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.


Market Performance


7 Day Return

-2.5%

3941

-1.3%

JP Packaging

-0.5%

JP Market


1 Year Return

4.9%

3941

-8.4%

JP Packaging

7.8%

JP Market

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.


Shareholder returns

3941IndustryMarket
7 Day-2.5%-1.3%-0.5%
30 Day2.1%0.9%5.5%
90 Day-1.3%1.8%13.9%
1 Year7.9%4.9%-6.8%-8.4%10.5%7.8%
3 Year4.0%-2.1%-11.6%-15.6%6.8%-0.7%
5 Year83.4%66.4%23.3%14.9%51.0%34.0%

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

Valuation

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

43.4%

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).


Next Steps

Future Growth

How is Rengo forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.1%

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%).


Next Steps

Past Performance

How has Rengo performed over the past 5 years?

21.6%

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.


Next Steps

Financial Health

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.


Balance Sheet


Next Steps

Dividend

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

2.80%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average board tenure


CEO

Kiyoshi Otsubo

no data

Tenure

JP¥119,000,000

Compensation

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.


Board Members

NamePositionTenureCompensationOwnership
Kiyoshi Otsubo
Chairman & CEOno dataJP¥119.00m0.063%
¥ 133.3m
Yosuke Kawamoto
Presidentno datano data0.030%
¥ 63.6m
Ichiro Hasegawa
Executive VP & Representative Directorno datano data0.25%
¥ 530.6m
Moriaki Maeda
Executive VP & Representative Directorno datano data0.035%
¥ 74.8m
Hiromi Sambe
Senior Managing Executive Officer & Directorno datano data0.028%
¥ 60.2m
Sadatoshi Inoue
Senior Managing Executive Officer & Directorno datano data0.028%
¥ 60.2m
Yasuhiro Baba
Senior Managing Executive Officer & Directorno datano data0.029%
¥ 62.8m
Shigechika Ishida
Executive VP & Representative Directorno datano data0.027%
¥ 58.5m
Masayuki Oku
Independent Outside Director1.58yrsno datano data
Kiwamu Hashimoto
Full-Time Audit & Supervisory Board Memberno datano data0.026%
¥ 55.9m
Yoshio Sato
Independent Outside Director2.58yrsno datano data
Shinya Sakai
Independent Outside Director1yrno datano data

1.6yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 3941's board of directors are not considered experienced ( 1.6 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

Rengo Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Rengo Co., Ltd.
  • Nakanoshima Central Tower
  • 25-27 Floors
  • Osaka
  • 530-0005
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3941TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 08:02
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.