Nippon Concrete Industries (TSE:5269) - Share price, News & Analysis

5269 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

5269 Stock Overview

Nippon Concrete Industries Co., Ltd. produces, constructs, and distributes precast concrete products.

Rewards

Trading at 55.2% below our estimate of its fair value

Earnings are forecast to grow 3.6% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Price History & Performance

Summary of all time highs, changes and price drops for Nippon Concrete Industries
Historical stock prices
Current Share Price	JP¥311.00
52 Week High	JP¥409.00
52 Week Low	JP¥251.00
Beta	0.55
1 Month Change	5.78%
3 Month Change	8.74%
1 Year Change	-22.44%
3 Year Change	14.76%
5 Year Change	-15.03%
Change since IPO	-60.68%

Shareholder Returns

	5269	JP Basic Materials	JP Market
7D	1.3%	-1.2%	0.7%
1Y	-22.4%	-11.2%	-2.4%

Return vs Industry: 5269 underperformed the JP Basic Materials industry which returned -11.2% over the past year.

Return vs Market: 5269 underperformed the JP Market which returned -2.4% over the past year.

Price Volatility

Is 5269's price volatile compared to industry and market?
5269 volatility
5269 Average Weekly Movement	3.5%
Basic Materials Industry Average Movement	3.6%
Market Average Movement	4.4%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 5269 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 5269's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1948	1,227	Katsuhiko Amiya	https://www.ncic.co.jp

Nippon Concrete Industries Co., Ltd. produces, constructs, and distributes precast concrete products. The company offers concrete and NC poles; single and flange poles for infrastructure, such as power lines, telecommunication lines, mobile phone base stations, and electric railroads, as well as for lifestyle, including sports net poles, disaster radio poles, lighting poles, speaker poles, carp streamer support poles, wind power generation support poles, and drying poles for firefighting hoses; and pole accessories. It also provides piles and precast concrete walls.

Nippon Concrete Industries Fundamentals Summary

How do Nippon Concrete Industries's earnings and revenue compare to its market cap?
5269 fundamental statistics
Market Cap	JP¥17.30b
Earnings (TTM)	JP¥1.64b
Revenue (TTM)	JP¥48.08b

10.5x

P/E Ratio

0.4x

P/S Ratio

Is 5269 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5269 income statement (TTM)
Revenue	JP¥48.08b
Cost of Revenue	JP¥39.87b
Gross Profit	JP¥8.21b
Other Expenses	JP¥6.57b
Earnings	JP¥1.64b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 13, 2022

Earnings per share (EPS)	29.52
Gross Margin	17.07%
Net Profit Margin	3.41%
Debt/Equity Ratio	30.9%

How did 5269 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

38%

Payout Ratio

Valuation

Is Nippon Concrete Industries undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 5269 (¥311) is trading below our estimate of fair value (¥693.84)

Significantly Below Fair Value: 5269 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 5269 is poor value based on its PE Ratio (10.5x) compared to the JP Basic Materials industry average (7.8x).

PE vs Market: 5269 is good value based on its PE Ratio (10.5x) compared to the JP market (12.4x).

Price to Earnings Growth Ratio

PEG Ratio: 5269 is poor value based on its PEG Ratio (2.9x)

Price to Book Ratio

PB vs Industry: 5269's PB Ratio (0.5x) is in line with the JP Basic Materials industry average.

Future Growth

How is Nippon Concrete Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

3.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5269's forecast earnings growth (3.6% per year) is above the savings rate (0.02%).

Earnings vs Market: 5269's earnings (3.6% per year) are forecast to grow slower than the JP market (8.6% per year).

High Growth Earnings: 5269's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5269's revenue (6.6% per year) is forecast to grow faster than the JP market (4.4% per year).

High Growth Revenue: 5269's revenue (6.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 5269's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Nippon Concrete Industries performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

-0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5269 has a large one-off gain of ¥577.0M impacting its December 31 2021 financial results.

Growing Profit Margin: 5269's current net profit margins (3.4%) are higher than last year (3.3%).

Past Earnings Growth Analysis

Earnings Trend: 5269's earnings have declined by 0.6% per year over the past 5 years.

Accelerating Growth: 5269's earnings growth over the past year (4.3%) exceeds its 5-year average (-0.6% per year).

Earnings vs Industry: 5269 earnings growth over the past year (4.3%) underperformed the Basic Materials industry 4.5%.

Return on Equity

High ROE: 5269's Return on Equity (4.5%) is considered low.

Financial Health

How is Nippon Concrete Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 5269's short term assets (¥33.2B) exceed its short term liabilities (¥27.8B).

Long Term Liabilities: 5269's short term assets (¥33.2B) exceed its long term liabilities (¥9.5B).

Debt to Equity History and Analysis

Debt Level: 5269's net debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: 5269's debt to equity ratio has increased from 23.9% to 30.9% over the past 5 years.

Debt Coverage: 5269's debt is well covered by operating cash flow (27.6%).

Interest Coverage: 5269 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Nippon Concrete Industries's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5269's dividend (2.89%) is higher than the bottom 25% of dividend payers in the JP market (1.57%).

High Dividend: 5269's dividend (2.89%) is low compared to the top 25% of dividend payers in the JP market (3.51%).

Stability and Growth of Payments

Stable Dividend: 5269's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5269's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.7%), 5269's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.8%), 5269's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

6.9yrs

Average management tenure

CEO

Katsuhiko Amiya (78 yo)

6.92yrs

Tenure

Mr. Katsuhiko Amiya has been the Chairman and Chief Executive Officer of Nippon Concrete Industries Co., Ltd. since June 2015 and served as its President since 2020 until 2021 and served as its President s...

Leadership Team

Experienced Management: 5269's management team is seasoned and experienced (6.9 years average tenure).

Board Members

Experienced Board: 5269's board of directors are considered experienced (8.9 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

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/07 00:00
End of Day Share Price	2022/05/06 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31