Nihon Parkerizing (TSE:4095) - Share price, News & Analysis

Q: What is the Fair Price of 4095 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

4095 (¥932) is trading below our estimate of [[fair value]] (¥1632.29)

4095 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	6/6

4095 Stock Overview

Nihon Parkerizing Co., Ltd. manufactures and supplies surface treatment chemicals in Japan and internationally.

Rewards

Trading at 42.9% below our estimate of its fair value

Pays a high and reliable dividend of 4.29%

Risk Analysis

Earnings have declined by 8.3% per year over past 5 years

Profit margins (7.3%) are lower than last year (11.5%)

Nihon Parkerizing Competitors

Sk KakenLtd

TSE:4628

JP¥102.1b

Tokuyama

TSE:4043

JP¥127.7b

Toyo Ink SC Holdings

TSE:4634

JP¥100.2b

Sanyo Chemical Industries

TSE:4471

JP¥96.3b

Price History & Performance

Summary of all time highs, changes and price drops for Nihon Parkerizing
Historical stock prices
Current Share Price	JP¥932.00
52 Week High	JP¥1,207.00
52 Week Low	JP¥859.00
Beta	0.50
1 Month Change	-2.92%
3 Month Change	4.60%
1 Year Change	-19.72%
3 Year Change	-22.33%
5 Year Change	-47.64%
Change since IPO	116.74%

Shareholder Returns

	4095	JP Chemicals	JP Market
7D	-3.1%	-3.8%	-2.3%
1Y	-19.7%	-17.1%	-8.8%

Return vs Industry: 4095 underperformed the JP Chemicals industry which returned -17.1% over the past year.

Return vs Market: 4095 underperformed the JP Market which returned -8.8% over the past year.

Price Volatility

Is 4095's price volatile compared to industry and market?
4095 volatility
4095 Average Weekly Movement	3.0%
Chemicals Industry Average Movement	3.4%
Market Average Movement	3.5%
10% most volatile stocks in JP Market	7.4%
10% least volatile stocks in JP Market	1.8%

Stable Share Price: 4095 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 4095's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1928	4,353	Kazuichi Satomi	https://www.parker.co.jp

Nihon Parkerizing Co., Ltd. manufactures and supplies surface treatment chemicals in Japan and internationally. The company supplies surface treatment chemicals for cleaning substrates, adding corrosion resistance, creating a base for painting, and providing lubrications; emulsion type rolling oil for rolling steel and cooling applications; heat exchangers, as well as offers technical support services. Further, the company provides various surface treatments, such as rust preventive treatment of metals and multi-functional surface treatments; and heat treatments.

Nihon Parkerizing Fundamentals Summary

How do Nihon Parkerizing's earnings and revenue compare to its market cap?
4095 fundamental statistics
Market Cap	JP¥108.69b
Earnings (TTM)	JP¥8.52b
Revenue (TTM)	JP¥116.75b

12.7x

P/E Ratio

0.9x

P/S Ratio

Is 4095 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
4095 income statement (TTM)
Revenue	JP¥116.75b
Cost of Revenue	JP¥79.47b
Gross Profit	JP¥37.28b
Other Expenses	JP¥28.76b
Earnings	JP¥8.52b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)	73.23
Gross Margin	31.93%
Net Profit Margin	7.30%
Debt/Equity Ratio	0.7%

How did 4095 perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

55%

Payout Ratio

Does 4095 pay a reliable dividends?

See 4095 dividend history and benchmarks

When do you need to buy 4095 by to receive an upcoming dividend?
Nihon Parkerizing dividend dates
Ex Dividend Date	Sep 29 2022
Dividend Pay Date	Dec 12 2022
Days until Ex dividend	0 days
Days until Dividend pay date	74 days

Does 4095 pay a reliable dividends?

See 4095 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 4095 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4095?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 4095. This is calculated by dividing 4095's market cap by their current preferred multiple.
What is 4095's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥108.69b

4095 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	3.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 4095's PE Ratio compare to its peers?

4095 PE Ratio vs Peers

The above table shows the PE ratio for 4095 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.1x
4628 Sk KakenLtd	9.5x	n/a	JP¥102.1b
4043 Tokuyama	4.6x	4.7%	JP¥127.7b
4634 Toyo Ink SC Holdings	8.7x	n/a	JP¥100.2b
4471 Sanyo Chemical Industries	13.6x	14.4%	JP¥96.3b
4095 Nihon Parkerizing	12.7x	n/a	JP¥108.7b

Price-To-Earnings vs Peers: 4095 is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does 4095's PE Ratio compare vs other companies in the JP Chemicals Industry?

Price-To-Earnings vs Industry: 4095 is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the JP Chemicals industry average (9.3x)

Price to Earnings Ratio vs Fair Ratio

What is 4095'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.

4095 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 4095's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 4095 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4095 (¥932) is trading below our estimate of fair value (¥1632.29)

Significantly Below Fair Value: 4095 is trading below fair value by more than 20%.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Nihon Parkerizing forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.2%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nihon Parkerizing has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine Nihon Parkerizing's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Nihon Parkerizing performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-8.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 4095 has high quality earnings.

Growing Profit Margin: 4095's current net profit margins (7.3%) are lower than last year (11.5%).

Past Earnings Growth Analysis

Earnings Trend: 4095's earnings have declined by 8.3% per year over the past 5 years.

Accelerating Growth: 4095's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4095 had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Chemicals industry average (18.7%).

Return on Equity

High ROE: 4095's Return on Equity (5.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Nihon Parkerizing's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 4095's short term assets (¥124.1B) exceed its short term liabilities (¥28.4B).

Long Term Liabilities: 4095's short term assets (¥124.1B) exceed its long term liabilities (¥9.1B).

Debt to Equity History and Analysis

Debt Level: 4095 has more cash than its total debt.

Reducing Debt: 4095's debt to equity ratio has reduced from 2% to 0.7% over the past 5 years.

Debt Coverage: 4095's debt is well covered by operating cash flow (1126.3%).

Interest Coverage: 4095 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Nihon Parkerizing current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.29%

Current Dividend Yield

Dividend Yield vs Market

Nihon Parkerizing Dividend Yield vs Market

How does Nihon Parkerizing dividend yield compare to the market?
Segment	Dividend Yield
Company (Nihon Parkerizing)	4.3%
Market Bottom 25% (JP)	1.7%
Market Top 25% (JP)	3.7%
Industry Average (Chemicals)	3.0%
Analyst forecast in 3 Years (Nihon Parkerizing)	n/a

Notable Dividend: 4095's dividend (4.29%) is higher than the bottom 25% of dividend payers in the JP market (1.66%).

High Dividend: 4095's dividend (4.29%) is in the top 25% of dividend payers in the JP market (3.73%)

Stability and Growth of Payments

Stable Dividend: 4095's dividends per share have been stable in the past 10 years.

Growing Dividend: 4095's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (55.1%), 4095's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46.3%), 4095's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.9yrs

Average management tenure

CEO

Kazuichi Satomi (75 yo)

35.17yrs

Tenure

Mr. Kazuichi Satomi has been the Chairman and Chief Executive Officer of Nihon Parkerizing Co., Ltd. since July 6, 2017. Mr. Satomi served as the President at Nihon Parkerizing Co., Ltd.since April 2011 u...

Leadership Team

Experienced Management: 4095's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: 4095's board of directors are considered experienced (5.2 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

What is the ownership structure of 4095?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	480,200	0.4%
Private Companies	4,633,000	4.0%
General Public	50,953,449	43.8%
Institutions	60,298,649	51.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 54.87% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
8.54%	FMR LLC	9,940,181	¥9.3b	-2.69%	0.01%
6.03%	Nissay Asset Management Corporation	7,015,000	¥6.5b	0%	0.07%
4.31%	Meiji Yasuda Life Insurance Company, Asset Management Arm	5,020,000	¥4.7b	0%	0.11%
4.09%	Chibagin Asset Management Co. Ltd.	4,765,000	¥4.4b	0%	5.33%
3.98%	The Satomi Scholarship Foundation	4,633,000	¥4.3b	0%	no data
3.2%	Mizuho Financial Group, Inc., Asset Management Arm	3,723,126	¥3.5b	0%	0.1%
2.68%	Sumitomo Mitsui Financial Group Inc., Asset Management Arm	3,113,000	¥2.9b	0%	0.06%
2.63%	Massachusetts Financial Services Company	3,063,155	¥2.9b	0.02%	0.01%
2.56%	Asset Management One Co., Ltd.	2,984,500	¥2.8b	0%	0.02%
2.55%	The Vanguard Group, Inc.	2,966,183	¥2.8b	1.15%	no data
2.36%	Nomura Asset Management Co., Ltd.	2,745,400	¥2.6b	-0.44%	0.01%
2.29%	Nippon Steel Corporation Retirement Benefit Trust	2,664,000	¥2.5b	0%	90.89%
1.82%	Yacktman Asset Management LP	2,118,100	¥2.0b	0%	0.12%
1.35%	BlackRock, Inc.	1,574,600	¥1.5b	-0.35%	no data
1.09%	Dimensional Fund Advisors LP	1,263,421	¥1.2b	1.4%	no data
1.09%	Daiwa Asset Management Co. Ltd.	1,262,700	¥1.2b	0.18%	0.01%
1.08%	Nikko Asset Management Co., Ltd.	1,256,100	¥1.2b	-1.15%	no data
0.8%	Norges Bank Investment Management	932,286	¥868.9m	0%	no data
0.41%	Mitsubishi UFJ Kokusai Asset Management Co., Ltd.	478,500	¥446.0m	0.8%	no data
0.39%	Allspring Global Investments, LLC	449,894	¥419.3m	-0.42%	no data
0.38%	Polar Capital Holdings plc	440,000	¥410.1m	12.82%	0.02%
0.38%	Kazuichi Satomi	438,800	¥409.0m	0%	no data
0.33%	Charles Schwab Investment Management, Inc.	386,200	¥359.9m	2.92%	no data
0.27%	Brandes Investment Partners, LP	313,300	¥292.0m	0%	0.02%
0.26%	Franklin Resources, Inc.	305,200	¥284.4m	-48.84%	no data

Data	Last Updated (UTC time)
Company Analysis	2022/09/28 00:00
End of Day Share Price	2022/09/28 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31