Tohokushinsha Film (TSE:2329) - Share price, News & Analysis

Q: What is the Fair Price of 2329 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2329 (¥666) is trading below our estimate of [[fair value]] (¥2753.45)

2329 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	4/6

2329 Stock Overview

Tohokushinsha Film Corporation engages in the media business in Japan.

Rewards

Trading at 75.8% below our estimate of its fair value

Earnings grew by 275.1% over the past year

Risk Analysis

Earnings have declined by 2.9% per year over past 5 years

Unstable dividend track record

Tohokushinsha Film Competitors

IMAGICA GROUP

TSE:6879

JP¥32.3b

Amuse

TSE:4301

JP¥33.0b

NexTone

TSE:7094

JP¥30.0b

Avex

TSE:7860

JP¥60.5b

Price History & Performance

Summary of all time highs, changes and price drops for Tohokushinsha Film
Historical stock prices
Current Share Price	JP¥666.00
52 Week High	JP¥714.00
52 Week Low	JP¥591.00
Beta	0.43
1 Month Change	6.90%
3 Month Change	4.88%
1 Year Change	-3.06%
3 Year Change	14.43%
5 Year Change	-8.64%
Change since IPO	-21.65%

Shareholder Returns

	2329	JP Entertainment	JP Market
7D	2.0%	-0.5%	-1.1%
1Y	-3.1%	-5.2%	-7.0%

Return vs Industry: 2329 exceeded the JP Entertainment industry which returned -5.2% over the past year.

Return vs Market: 2329 exceeded the JP Market which returned -7% over the past year.

Price Volatility

Is 2329's price volatile compared to industry and market?
2329 volatility
2329 Average Weekly Movement	3.1%
Entertainment Industry Average Movement	6.0%
Market Average Movement	4.2%
10% most volatile stocks in JP Market	8.4%
10% least volatile stocks in JP Market	2.2%

Stable Share Price: 2329 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2329's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1961	1,571	Shinya Nakajima	https://www.tfc.co.jp

Tohokushinsha Film Corporation engages in the media business in Japan. The company develops and produces television programs, unrivaled web, and corporate and event video content; feature films and drama series for television; animations and games; visual media; content; documentaries; television commercials, web videos; and motion pictures. It also involves in the commercial production, promotions, broadcasting and streaming services, management of voice and translator as dubbing, and sales of media storage and recording devices, as well as operation of supermarkets and brewery, and provision of interior design services.

Tohokushinsha Film Fundamentals Summary

How do Tohokushinsha Film's earnings and revenue compare to its market cap?
2329 fundamental statistics
Market Cap	JP¥29.94b
Earnings (TTM)	JP¥3.07b
Revenue (TTM)	JP¥52.76b

9.8x

P/E Ratio

0.6x

P/S Ratio

Is 2329 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2329 income statement (TTM)
Revenue	JP¥52.76b
Cost of Revenue	JP¥38.43b
Gross Profit	JP¥14.33b
Other Expenses	JP¥11.26b
Earnings	JP¥3.07b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	68.26
Gross Margin	27.16%
Net Profit Margin	5.82%
Debt/Equity Ratio	2.1%

How did 2329 perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

28%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2329 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2329?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2329. This is calculated by dividing 2329's market cap by their current preferred multiple.
What is 2329's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥29.94b

2329 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2329's PE Ratio compare to its peers?

2329 PE Ratio vs Peers

The above table shows the PE ratio for 2329 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	40.2x
6879 IMAGICA GROUP	11.8x	6.0%	JP¥32.3b
4301 Amuse	21.1x	6.5%	JP¥33.0b
7094 NexTone	62.2x	32.2%	JP¥30.0b
7860 Avex	65.8x	43.9%	JP¥60.5b
2329 Tohokushinsha Film	9.8x	n/a	JP¥29.9b

Forward PE

Price-To-Earnings vs Peers: 2329 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (40.2x).

Price to Earnings Ratio vs Industry

How does 2329's PE Ratio compare vs other companies in the JP Entertainment Industry?

Price-To-Earnings vs Industry: 2329 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the JP Entertainment industry average (18.5x)

Price to Earnings Ratio vs Fair Ratio

What is 2329'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.

2329 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2329's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 2329 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2329 (¥666) is trading below our estimate of fair value (¥2753.45)

Significantly Below Fair Value: 2329 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2329's PEG Ratio to determine if it is good value.

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Future Growth

How is Tohokushinsha Film 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

1.4%

Forecasted Media 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 Tohokushinsha Film 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.

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Examine whether Tohokushinsha Film is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Tohokushinsha Film performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-2.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2329 has high quality earnings.

Growing Profit Margin: 2329's current net profit margins (5.8%) are higher than last year (1.5%).

Past Earnings Growth Analysis

Earnings Trend: 2329's earnings have declined by 2.9% per year over the past 5 years.

Accelerating Growth: 2329's earnings growth over the past year (275.1%) exceeds its 5-year average (-2.9% per year).

Earnings vs Industry: 2329 earnings growth over the past year (275.1%) exceeded the Entertainment industry 6.1%.

Return on Equity

High ROE: 2329's Return on Equity (4.2%) is considered low.

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Financial Health

How is Tohokushinsha Film'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: 2329's short term assets (¥58.9B) exceed its short term liabilities (¥16.4B).

Long Term Liabilities: 2329's short term assets (¥58.9B) exceed its long term liabilities (¥5.4B).

Debt to Equity History and Analysis

Debt Level: 2329 has more cash than its total debt.

Reducing Debt: 2329's debt to equity ratio has increased from 2.1% to 2.1% over the past 5 years.

Debt Coverage: 2329's debt is well covered by operating cash flow (321.5%).

Interest Coverage: 2329 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Tohokushinsha Film 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

2.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2329's dividend (2.55%) is higher than the bottom 25% of dividend payers in the JP market (1.69%).

High Dividend: 2329's dividend (2.55%) is low compared to the top 25% of dividend payers in the JP market (3.74%).

Stability and Growth of Payments

Stable Dividend: 2329's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2329's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.8%), 2329's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.2%), 2329's dividend payments are well covered by cash flows.

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Management

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

3.5yrs

Average management tenure

CEO

Shinya Nakajima (63 yo)

1.42yrs

Tenure

Mr. Shinya Nakajima has been President and Chief Executive Officer of Tohokushinsha Film Corporation since February 26, 2021 and serves as its Representative Director. He was Executive Vice President of To...

Leadership Team

Experienced Management: 2329's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: 2329's board of directors are considered experienced (3.5 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	2022/07/02 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31