Rengo Co., Ltd.

TSE:3941 Stock Report

Market Cap: JP¥217.4b

Rengo Valuation

Is 3941 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3941 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3941 (¥893.6) is trading above our estimate of fair value (¥726.25)

Significantly Below Fair Value: 3941 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3941?

Key metric: As 3941 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3941. This is calculated by dividing 3941's market cap by their current earnings.
What is 3941's PE Ratio?
PE Ratio6.6x
EarningsJP¥33.50b
Market CapJP¥217.41b

Price to Earnings Ratio vs Peers

How does 3941's PE Ratio compare to its peers?

The above table shows the PE ratio for 3941 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11x
3950 Pack
10.6xn/aJP¥67.9b
7504 Kohsoku
14.6xn/aJP¥47.7b
3946 Tomoku
7.3xn/aJP¥36.5b
3951 Asahi PrintingLtd
11.4xn/aJP¥18.6b
3941 Rengo
6.6x4.6%JP¥221.4b

Price-To-Earnings vs Peers: 3941 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (11x).

Price to Earnings Ratio vs Industry

How does 3941's PE Ratio compare vs other companies in the JP Packaging Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
3941 6.6xIndustry Avg. 10.3xNo. of Companies6PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3941 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the JP Packaging industry average (10.3x).

Price to Earnings Ratio vs Fair Ratio

What is 3941'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.

3941 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.6x
Fair PE Ratio11.1x

Price-To-Earnings vs Fair Ratio: 3941 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 3941 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥893.60
JP¥1,266.67
+41.7%
12.4%JP¥1,500.00JP¥1,050.00n/a6
Nov ’25JP¥873.90
JP¥1,290.00
+47.6%
12.1%JP¥1,500.00JP¥1,050.00n/a7
Oct ’25JP¥997.10
JP¥1,290.00
+29.4%
12.1%JP¥1,500.00JP¥1,050.00n/a7
Sep ’25JP¥1,004.50
JP¥1,297.14
+29.1%
12.1%JP¥1,500.00JP¥1,050.00n/a7
Aug ’25JP¥1,037.00
JP¥1,332.86
+28.5%
8.8%JP¥1,500.00JP¥1,100.00n/a7
Jul ’25JP¥1,045.50
JP¥1,332.86
+27.5%
8.8%JP¥1,500.00JP¥1,100.00n/a7
Jun ’25JP¥1,059.50
JP¥1,350.00
+27.4%
7.9%JP¥1,450.00JP¥1,100.00n/a7
May ’25JP¥1,177.50
JP¥1,365.71
+16.0%
8.8%JP¥1,510.00JP¥1,100.00n/a7
Apr ’25JP¥1,142.50
JP¥1,295.00
+13.3%
9.9%JP¥1,450.00JP¥1,100.00n/a4
Mar ’25JP¥997.00
JP¥1,220.00
+22.4%
6.5%JP¥1,300.00JP¥1,100.00n/a4
Feb ’25JP¥950.00
JP¥1,177.50
+23.9%
9.3%JP¥1,300.00JP¥1,000.00n/a4
Jan ’25JP¥940.00
JP¥1,176.00
+25.1%
8.3%JP¥1,300.00JP¥1,000.00n/a5
Dec ’24JP¥934.80
JP¥1,182.00
+26.4%
8.5%JP¥1,300.00JP¥1,000.00n/a5
Nov ’24JP¥1,001.00
JP¥1,202.00
+20.1%
5.5%JP¥1,300.00JP¥1,100.00JP¥873.905
Oct ’24JP¥1,026.00
JP¥1,202.00
+17.2%
5.5%JP¥1,300.00JP¥1,100.00JP¥997.105
Sep ’24JP¥997.10
JP¥1,162.50
+16.6%
5.9%JP¥1,250.00JP¥1,090.00JP¥1,004.504
Aug ’24JP¥913.00
JP¥1,100.00
+20.5%
8.4%JP¥1,250.00JP¥1,000.00JP¥1,037.004
Jul ’24JP¥885.90
JP¥1,128.00
+27.3%
8.0%JP¥1,250.00JP¥1,000.00JP¥1,045.505
Jun ’24JP¥827.00
JP¥1,128.00
+36.4%
8.0%JP¥1,250.00JP¥1,000.00JP¥1,059.505
May ’24JP¥868.00
JP¥1,102.00
+27.0%
7.1%JP¥1,200.00JP¥1,000.00JP¥1,177.505
Apr ’24JP¥859.00
JP¥1,102.00
+28.3%
7.1%JP¥1,200.00JP¥1,000.00JP¥1,142.505
Mar ’24JP¥867.00
JP¥1,100.00
+26.9%
7.1%JP¥1,200.00JP¥1,000.00JP¥997.005
Feb ’24JP¥915.00
JP¥1,100.00
+20.2%
7.1%JP¥1,200.00JP¥1,000.00JP¥950.005
Jan ’24JP¥908.00
JP¥1,100.00
+21.1%
7.1%JP¥1,200.00JP¥1,000.00JP¥940.005
Dec ’23JP¥877.00
JP¥1,048.00
+19.5%
11.6%JP¥1,200.00JP¥860.00JP¥934.805
Nov ’23JP¥823.00
JP¥1,038.00
+26.1%
12.3%JP¥1,200.00JP¥860.00JP¥1,001.005

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Tokuyama

JP¥190.5b

Produces and sells various chemical products in Japan.

4043

JP¥2,736.50

7D

4.0%

1Y

13.9%

Daicel

JP¥366.8b

Engages in the materials, medical/healthcare, smart, safety, engineering plastics, and other businesses in Japan, China, and internationally.

4202

JP¥1,383.00

7D

3.9%

1Y

-3.2%

Yamato Kogyo

JP¥507.1b

Through its subsidiaries, engages in the manufacture and sale of steel products in Japan, and internationally.

5444

JP¥8,110.00

7D

1.2%

1Y

6.6%