7371

Zenken TSE:7371 Stock Report

Last Price

JP¥737.00

Market Cap

JP¥8.8b

7D

1.0%

1Y

n/a

Updated

17 May, 2022

Data

Company Financials
7371 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends1/6

7371 Stock Overview

Zenken Corporation provides IT, language education, and real estate services in Japan.

Zenken Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Zenken
Historical stock prices
Current Share PriceJP¥737.00
52 Week HighJP¥1,568.00
52 Week LowJP¥707.00
Beta0
1 Month Change-5.51%
3 Month Change-18.74%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-47.84%

Recent News & Updates

Shareholder Returns

7371JP MediaJP Market
7D1.0%-2.0%-0.02%
1Yn/a-5.1%-3.6%

Return vs Industry: Insufficient data to determine how 7371 performed against the JP Media industry.

Return vs Market: Insufficient data to determine how 7371 performed against the JP Market.

Price Volatility

Is 7371's price volatile compared to industry and market?
7371 volatility
7371 Average Weekly Movement5.4%
Media Industry Average Movement5.0%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.1%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 7371 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 7371's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1975443Junnosuke Hayashihttps://www.zenken.co.jp

Zenken Corporation provides IT, language education, and real estate services in Japan. It offers content marketing, media, overseas IT talent recruitment, and AI services; and language training services for organizations, study abroad placement, English conversation school, and Japanese language education services. The company was founded 1975 and is based in Tokyo, Japan.

Zenken Fundamentals Summary

How do Zenken's earnings and revenue compare to its market cap?
7371 fundamental statistics
Market CapJP¥8.80b
Earnings (TTM)JP¥1.62b
Revenue (TTM)JP¥7.51b

5.4x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7371 income statement (TTM)
RevenueJP¥7.51b
Cost of RevenueJP¥2.68b
Gross ProfitJP¥4.84b
Other ExpensesJP¥3.22b
EarningsJP¥1.62b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)136.37
Gross Margin64.36%
Net Profit Margin21.56%
Debt/Equity Ratio7.5%

How did 7371 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is Zenken 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: 7371 (¥737) is trading below our estimate of fair value (¥3476.97)

Significantly Below Fair Value: 7371 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7371 is good value based on its PE Ratio (5.4x) compared to the JP Media industry average (13.6x).

PE vs Market: 7371 is good value based on its PE Ratio (5.4x) compared to the JP market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7371's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7371 is good value based on its PB Ratio (0.7x) compared to the JP Media industry average (1.6x).


Future Growth

How is Zenken 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


4.9%

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 Zenken 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 Zenken 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


99.6%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: 7371 has high quality earnings.

Growing Profit Margin: 7371's current net profit margins (21.6%) are higher than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 7371's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 7371's past year earnings growth to its 5-year average.

Earnings vs Industry: 7371 earnings growth over the past year (99.6%) exceeded the Media industry 55.1%.


Return on Equity

High ROE: 7371's Return on Equity (13.7%) is considered low.


Financial Health

How is Zenken'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: 7371's short term assets (¥6.2B) exceed its short term liabilities (¥1.9B).

Long Term Liabilities: 7371's short term assets (¥6.2B) exceed its long term liabilities (¥1.0B).


Debt to Equity History and Analysis

Debt Level: 7371 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 7371's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 7371's debt is well covered by operating cash flow (170.2%).

Interest Coverage: 7371's interest payments on its debt are well covered by EBIT (779x coverage).


Balance Sheet


Dividend

What is Zenken current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7371's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 7371's dividend (1.09%) is low compared to the top 25% of dividend payers in the JP market (3.65%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 7371's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 7371's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.8%), 7371's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Junnosuke Hayashi (56 yo)

7.92yrs

Tenure

Mr. Junnosuke Hayashi is the President and Director at Zenken Corporation since June 2014. He is a Representative Director, President of Entre Co., Ltd since April 1997. He is a General Manager at Cyber E...


Leadership Team

Experienced Management: 7371's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: 7371's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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: 7371 only recently listed within the past 12 months.


Top Shareholders

Company Information

Zenken Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Zenken Corporation
  • Ticker: 7371
  • Exchange: TSE
  • Founded: 1975
  • Industry: Advertising
  • Sector: Media
  • Implied Market Cap: JP¥8.803b
  • Shares outstanding: 11.88m
  • Website: https://www.zenken.co.jp

Number of Employees


Location

  • Zenken Corporation
  • Sumitomo Fudosan Shinjuku Central Park Tower
  • 18 & 19 Floors
  • Tokyo
  • 160-8361
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.