Fuji Seal International (TSE:7864) - Share price, News & Analysis

7864 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

7864 Overview

Fuji Seal International, Inc. provides packaging solutions primarily for food, beverages, dairy, home and personal care, and pharmaceutical products.

Rewards

Trading at 8.6% below our estimate of its fair value

Earnings are forecast to grow 8.74% per year

Earnings grew by 26.3% over the past year

Risk Analysis

Unstable dividend track record

Fuji Seal International Competitors

Amcor

ASX:AMC

AU$25.7b

Grupa Kety

WSE:KTY

zł6.4b

Price History & Performance

Summary of all time highs, changes and price drops for Fuji Seal International
Historical stock prices
Current Share Price	JP¥2,657.00
52 Week High	JP¥1,886.00
52 Week Low	JP¥2,687.00
Beta	0.36
1 Month Change	9.43%
3 Month Change	15.87%
1 Year Change	32.58%
3 Year Change	-31.34%
5 Year Change	23.87%
Change since IPO	714.06%

Shareholder Returns

	7864	JP Packaging	JP Market
7D	0.7%	0.7%	1.5%
1Y	32.6%	10.4%	25.9%

Return vs Industry: 7864 exceeded the JP Packaging industry which returned 10.4% over the past year.

Return vs Market: 7864 exceeded the JP Market which returned 25.9% over the past year.

Price Volatility

Is 7864's price volatile compared to industry and market?
7864 volatility
7864 Beta	0.36
Industry Beta	0.62
Market Beta	1

Stable Share Price: 7864 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7864's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1897	5,741	Shigeko Okazaki	https://www.fujiseal.com/en/

Fuji Seal International, Inc. provides packaging solutions primarily for food, beverages, dairy, home and personal care, and pharmaceutical products. It offers shrink sleeve labels for containers; self-adhesive labels/pressure sensitive labels used in promotional and advertising campaign tools; spouted pouches; Thermo-Shield insulating labels for various containers, such as plastic packages, glass packages, packages for microwave use, etc.; in mold labels; and Contour-Pak carriers. The company also provides packaging machinery, such as label feeders, label applicators, peripheral production line equipment, shrink sleeve labelers, self-adhesive/pressure sensitive labelling systems and labelers, Thermo-Shield labelers, heat activated labelers, stretch labelers, and spouted pouch equipment, as well as offers spare and wear parts, training, and support services.

Valuation

Is Fuji Seal International undervalued compared to its fair value and its price relative to the market?

8.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 7864 (¥2657) is trading below our estimate of fair value (¥2905.55)

Significantly Below Fair Value: 7864 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 7864 is poor value based on its PE Ratio (15.4x) compared to the JP Packaging industry average (13x).

PE vs Market: 7864 is poor value based on its PE Ratio (15.4x) compared to the JP market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: 7864 is poor value based on its PEG Ratio (1.8x)

Price to Book Ratio

PB vs Industry: 7864 is overvalued based on its PB Ratio (1.4x) compared to the JP Packaging industry average (0.5x).

Future Growth

How is Fuji Seal International forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7864's forecast earnings growth (8.7% per year) is above the savings rate (0%).

Earnings vs Market: 7864's earnings (8.7% per year) are forecast to grow slower than the JP market (10.3% per year).

High Growth Earnings: 7864's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7864's revenue (5.5% per year) is forecast to grow faster than the JP market (4.8% per year).

High Growth Revenue: 7864's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 7864's Return on Equity is forecast to be low in 3 years time (9.1%).

Past Performance

How has Fuji Seal International performed over the past 5 years?

4.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7864 has high quality earnings.

Growing Profit Margin: 7864's current net profit margins (5.7%) are higher than last year (4.6%).

Past Earnings Growth Analysis

Earnings Trend: 7864's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: 7864's earnings growth over the past year (26.3%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: 7864 earnings growth over the past year (26.3%) exceeded the Packaging industry 7.8%.

Return on Equity

High ROE: 7864's Return on Equity (8.9%) is considered low.

Financial Health

How is Fuji Seal International's financial position?

Financial Position Analysis

Short Term Liabilities: 7864's short term assets (¥100.1B) exceed its short term liabilities (¥55.3B).

Long Term Liabilities: 7864's short term assets (¥100.1B) exceed its long term liabilities (¥4.9B).

Debt to Equity History and Analysis

Debt Level: 7864's debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: 7864's debt to equity ratio has reduced from 25.5% to 10.4% over the past 5 years.

Debt Coverage: 7864's debt is well covered by operating cash flow (201.9%).

Interest Coverage: 7864 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Fuji Seal International current dividend yield, its reliability and sustainability?

1.35%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 7864's dividend (1.35%) is higher than the bottom 25% of dividend payers in the JP market (1.27%).

High Dividend: 7864's dividend (1.35%) is low compared to the top 25% of dividend payers in the JP market (2.96%).

Stability and Growth of Payments

Stable Dividend: 7864's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7864's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.7%), 7864'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

Explore strong dividend paying companies in the Materials industry.

Management

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

4.3yrs

Average board tenure

CEO

Shigeko Okazaki (64 yo)

no data

Tenure

Ms. Shigeko Okazaki serves as Representative Executive Officer Chairperson at Fuji Seal International, Inc. since 2021 and has served as Chairman since 2021 until 2021. She serves as the Chief Executive Of...

Board Members

Experienced Board: 7864's board of directors are considered experienced (4.3 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	2021/09/16 15:26
End of Day Share Price	2021/09/16 00:00
Earnings	2021/06/30
Annual Earnings	2021/03/31

Market Cap

7D

1Y

Updated

Data