Nissen (TSE:6543) - Share price, News & Analysis

6543 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	4/6

6543 Stock Overview

Nissen Inc. engages in communication design/advertising, promotion strategy development/ sales promotion/consulting/surveying businesses in Japan.

Rewards

Trading at 50.4% below our estimate of its fair value

Risk Analysis

Earnings have declined by 13% per year over past 5 years

Unstable dividend track record

Does not have a meaningful market cap (¥2B)

Nissen Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nissen
Historical stock prices
Current Share Price	JP¥1,131.00
52 Week High	JP¥1,317.00
52 Week Low	JP¥1,122.00
Beta	0.88
1 Month Change	-1.99%
3 Month Change	-10.10%
1 Year Change	-7.75%
3 Year Change	-16.04%
5 Year Change	-53.21%
Change since IPO	-58.20%

Shareholder Returns

	6543	JP Media	JP Market
7D	-0.5%	-4.1%	0.6%
1Y	-7.7%	-5.8%	-2.9%

Return vs Industry: 6543 underperformed the JP Media industry which returned -5.8% over the past year.

Return vs Market: 6543 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 6543's price volatile compared to industry and market?
6543 volatility
6543 Average Weekly Movement	4.7%
Media Industry Average Movement	5.1%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.2%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 6543 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6543's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1947	140	Yuji Otsu	https://www.nissenad.co.jp

Nissen Inc. engages in communication design/advertising, promotion strategy development/ sales promotion/consulting/surveying businesses in Japan. The company also offers graphic design/copywriting/corporate identity development/catalog production/Web site production/display design/edit/production of PR magazine/CM production/movie production/talent casting/various advertisement design services. In addition, it offers media publishing and agency services; catalog/poster/brochure/calendar/sales promotion tool/novelty printing services; and call center/various telemarketing services.

Nissen Fundamentals Summary

How do Nissen's earnings and revenue compare to its market cap?
6543 fundamental statistics
Market Cap	JP¥2.09b
Earnings (TTM)	JP¥253.00m
Revenue (TTM)	JP¥4.84b

8.3x

P/E Ratio

0.4x

P/S Ratio

Is 6543 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6543 income statement (TTM)
Revenue	JP¥4.84b
Cost of Revenue	JP¥3.69b
Gross Profit	JP¥1.15b
Other Expenses	JP¥897.00m
Earnings	JP¥253.00m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	136.60
Gross Margin	23.78%
Net Profit Margin	5.23%
Debt/Equity Ratio	16.0%

How did 6543 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Nissen undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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: 6543 (¥1131) is trading below our estimate of fair value (¥2281.28)

Significantly Below Fair Value: 6543 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 6543 is good value based on its PE Ratio (8.3x) compared to the JP Media industry average (13x).

PE vs Market: 6543 is good value based on its PE Ratio (8.3x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6543's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 6543 is good value based on its PB Ratio (0.7x) compared to the JP Media industry average (1.5x).

Future Growth

How is Nissen 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

3.5%

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 Nissen 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.

Past Performance

How has Nissen performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

-13.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6543 has high quality earnings.

Growing Profit Margin: 6543's current net profit margins (5.2%) are higher than last year (4%).

Past Earnings Growth Analysis

Earnings Trend: 6543's earnings have declined by 13% per year over the past 5 years.

Accelerating Growth: 6543's earnings growth over the past year (31.8%) exceeds its 5-year average (-13% per year).

Earnings vs Industry: 6543 earnings growth over the past year (31.8%) underperformed the Media industry 48.8%.

Return on Equity

High ROE: 6543's Return on Equity (8.6%) is considered low.

Financial Health

How is Nissen'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: 6543's short term assets (¥2.2B) exceed its short term liabilities (¥612.0M).

Long Term Liabilities: 6543's short term assets (¥2.2B) exceed its long term liabilities (¥769.0M).

Debt to Equity History and Analysis

Debt Level: 6543 has more cash than its total debt.

Reducing Debt: 6543's debt to equity ratio has reduced from 78.1% to 16% over the past 5 years.

Debt Coverage: 6543's debt is well covered by operating cash flow (47.6%).

Interest Coverage: 6543 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Nissen 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

3.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6543's dividend (3.71%) is higher than the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 6543's dividend (3.71%) is in the top 25% of dividend payers in the JP market (3.64%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6543 has been paying a dividend for less than 10 years.

Growing Dividend: 6543's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.9%), 6543's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.2%), 6543's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

3.0yrs

Average board tenure

CEO

Yuji Otsu (51 yo)

no data

Tenure

Mr. Yuji Otsu serves as President at Nissen Inc. Mr. Otsu also serves as its Chief Executive Officer. Mr. Otsu served as Managing Director of Nissen, Inc. since August 2007 and Manager of Sales 3 Departmen...

Board Members

Experienced Board: 6543's board of directors are considered experienced (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	2022/05/18 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/02/28
Annual Earnings	2022/02/28