Nichia Steel Works, Ltd.

TSE:5658 Stock Report

Market Cap: JP¥14.3b

Nichia Steel Works Valuation

Is 5658 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 5658 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5658 (¥300) is trading below our estimate of fair value (¥10463.91)

Significantly Below Fair Value: 5658 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5658?

Key metric: As 5658 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5658. This is calculated by dividing 5658's market cap by their current earnings.
What is 5658's PE Ratio?
PE Ratio11.6x
EarningsJP¥1.23b
Market CapJP¥14.27b

Price to Earnings Ratio vs Peers

How does 5658's PE Ratio compare to its peers?

The above table shows the PE ratio for 5658 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.7x
5484 Tohoku Steel
17.4xn/aJP¥15.8b
5922 Nasu Denki-Tekko
6.7xn/aJP¥13.4b
5981 Tokyo Rope Mfg
8.9x14.7%JP¥20.2b
7305 Araya Industrial
18xn/aJP¥25.1b
5658 Nichia Steel Works
11.6xn/aJP¥14.3b

Price-To-Earnings vs Peers: 5658 is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (12.7x).

Price to Earnings Ratio vs Industry

How does 5658's PE Ratio compare vs other companies in the JP Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
5658 11.6xIndustry Avg. 8.9xNo. of Companies12PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5658 is expensive based on its Price-To-Earnings Ratio (11.6x) compared to the JP Metals and Mining industry average (8.9x).

Price to Earnings Ratio vs Fair Ratio

What is 5658'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.

5658 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 5658's Price-To-Earnings Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Tokuyama

JP¥196.7b

Produces and sells various chemical products in Japan.

4043

JP¥2,734.00

7D

3.9%

1Y

13.8%

Kaneka

JP¥219.3b

Engages in the manufacture and sale of polyvinyl chloride (PVC), crosslinked PVC, PVC-PVAc polymers, paste PVC, acryl grafted-vinyl chloride copolymer, and chlorinated PVC in Japan and internationally.

4118

JP¥3,486.00

7D

1.9%

1Y

-7.3%

Daicel

JP¥373.4b

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

4202

JP¥1,376.50

7D

3.4%

1Y

-3.7%