AXELL (TSE:6730) - Share price, News & Analysis

6730 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

6730 Stock Overview

AXELL Corporation designs, manufactures, and sells semiconductor ICs and printed circuit boards with embedded semiconductor ICs in Japan.

Rewards

Trading at 70.3% below our estimate of its fair value

Revenue grew by 18.5% over the past year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (¥9B)

AXELL Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AXELL
Historical stock prices
Current Share Price	JP¥829.00
52 Week High	JP¥1,249.00
52 Week Low	JP¥698.00
Beta	0.98
1 Month Change	-13.92%
3 Month Change	-23.59%
1 Year Change	-10.09%
3 Year Change	44.17%
5 Year Change	3.62%
Change since IPO	-48.91%

Shareholder Returns

	6730	JP Semiconductor	JP Market
7D	-2.5%	2.0%	1.5%
1Y	-10.1%	13.7%	-2.7%

Return vs Industry: 6730 underperformed the JP Semiconductor industry which returned 13.7% over the past year.

Return vs Market: 6730 underperformed the JP Market which returned -2.7% over the past year.

Price Volatility

Is 6730's price volatile compared to industry and market?
6730 volatility
6730 Average Weekly Movement	5.0%
Semiconductor Industry Average Movement	6.3%
Market Average Movement	4.5%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 6730 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6730's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	111	Kazunori Matsuura	https://www.axell.co.jp

AXELL Corporation designs, manufactures, and sells semiconductor ICs and printed circuit boards with embedded semiconductor ICs in Japan. The company offers multifunction and LED driver LSI products specialized for use in pachinko and pachi slot-machines; and graphics LSIs for industrial embedded systems. It is also involved in the research, development, and sale of elemental technologies related to graphics, sound, machine learning, etc.; information securities; and block chain.

AXELL Fundamentals Summary

How do AXELL's earnings and revenue compare to its market cap?
6730 fundamental statistics
Market Cap	JP¥9.31b
Earnings (TTM)	JP¥865.00m
Revenue (TTM)	JP¥10.67b

10.4x

P/E Ratio

0.8x

P/S Ratio

Is 6730 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6730 income statement (TTM)
Revenue	JP¥10.67b
Cost of Revenue	JP¥7.15b
Gross Profit	JP¥3.52b
Other Expenses	JP¥2.65b
Earnings	JP¥865.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	79.88
Gross Margin	32.96%
Net Profit Margin	8.11%
Debt/Equity Ratio	0.0%

How did 6730 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is AXELL 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: 6730 (¥829) is trading below our estimate of fair value (¥2794.29)

Significantly Below Fair Value: 6730 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 6730 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the JP Semiconductor industry average (11.8x).

PE vs Market: 6730 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the JP market (12.4x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6730's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 6730 is good value based on its Price-To-Book Ratio (0.8x) compared to the JP Semiconductor industry average (1.5x).

Future Growth

How is AXELL 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

10.8%

Forecasted Semiconductors 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 AXELL 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 AXELL performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

29.1%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: 6730 has high quality earnings.

Growing Profit Margin: 6730's current net profit margins (8.1%) are higher than last year (7.4%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6730's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 6730's past year earnings growth to its 5-year average.

Earnings vs Industry: 6730 earnings growth over the past year (29.1%) underperformed the Semiconductor industry 100.7%.

Return on Equity

High ROE: 6730's Return on Equity (8.2%) is considered low.

Financial Health

How is AXELL'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: 6730's short term assets (¥11.0B) exceed its short term liabilities (¥1.6B).

Long Term Liabilities: 6730's short term assets (¥11.0B) exceed its long term liabilities (¥41.0M).

Debt to Equity History and Analysis

Debt Level: 6730 is debt free.

Reducing Debt: 6730 has not had any debt for past 5 years.

Debt Coverage: 6730 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6730 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6730's dividend (2.9%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 6730's dividend (2.9%) is low compared to the top 25% of dividend payers in the JP market (3.68%).

Stability and Growth of Payments

Stable Dividend: 6730's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6730's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50%), 6730's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.3%), 6730's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

9.9yrs

Average management tenure

CEO

Kazunori Matsuura (51 yo)

9.92yrs

Tenure

Mr. Kazunori Matsuura has been the President of AXELL Corporation since June 2012. Mr. Matsuura served as General Manager of Technical Group at AXELL Corporation since June 2006. Mr. Matsuura joined Axell...

Leadership Team

Experienced Management: 6730's management team is seasoned and experienced (9.9 years average tenure).

Board Members

Experienced Board: 6730's board of directors are considered experienced (9.9 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	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31