Data Applications Company (TSE:3848) - Share price, News & Analysis

Q: What is the Fair Price of 3848 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3848 (¥1528) is trading below our estimate of [[fair value]] (¥3002.29)

3848 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

3848 Stock Overview

Rewards

Trading at 49.1% below our estimate of its fair value

Earnings grew by 32.3% over the past year

Pays a reliable dividend of 2.81%

Trading at good value vs. peer average Price-To-Earnings ratio

Risk Analysis

Earnings have declined by 15.9% per year over past 5 years

Does not have a meaningful market cap (¥5B)

Data Applications Company Competitors

Wacul.Inc

TSE:4173

JP¥4.6b

Unite and Grow

TSE:4486

JP¥4.8b

Appirits

TSE:4174

JP¥4.9b

Intimate Merger

TSE:7072

JP¥4.2b

Price History & Performance

Summary of all time highs, changes and price drops for Data Applications Company
Historical stock prices
Current Share Price	JP¥1,528.00
52 Week High	JP¥2,134.00
52 Week Low	JP¥1,493.00
Beta	0.65
1 Month Change	-2.80%
3 Month Change	-5.45%
1 Year Change	-8.78%
3 Year Change	-15.44%
5 Year Change	-12.23%
Change since IPO	-12.18%

Shareholder Returns

	3848	JP IT	JP Market
7D	-1.5%	-1.1%	-3.9%
1Y	-8.8%	-14.6%	-8.2%

Return vs Industry: 3848 exceeded the JP IT industry which returned -14.6% over the past year.

Return vs Market: 3848 matched the JP Market which returned -8.2% over the past year.

Price Volatility

Is 3848's price volatile compared to industry and market?
3848 volatility
3848 Average Weekly Movement	2.0%
IT Industry Average Movement	4.3%
Market Average Movement	3.5%
10% most volatile stocks in JP Market	7.4%
10% least volatile stocks in JP Market	1.8%

Stable Share Price: 3848 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 3848's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	126	Takeshi Yasuhara	https://www.dal.co.jp

Data Applications Company, Limited engages in the B2B electronic data interchange (EDI) and enterprise application integration (EAI) software development, marketing, and consulting businesses in Japan. The company’s products and services include enterprise data link infrastructure; B2B server for digital business transactions; enterprise Web-EDI system infrastructure; Web-based data exchange system architecture tools; full automation of browser functions for Web-EDI; TCP/IP banking systems; data-handling platforms; non-programming data exchange tools; and EDI client for small and medium sized businesses. Data Applications Company, Limited was founded in 1982 and is based in Tokyo, Japan.

Data Applications Company Fundamentals Summary

How do Data Applications Company's earnings and revenue compare to its market cap?
3848 fundamental statistics
Market Cap	JP¥4.66b
Earnings (TTM)	JP¥328.00m
Revenue (TTM)	JP¥2.31b

14.2x

P/E Ratio

2.0x

P/S Ratio

Is 3848 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3848 income statement (TTM)
Revenue	JP¥2.31b
Cost of Revenue	JP¥681.00m
Gross Profit	JP¥1.63b
Other Expenses	JP¥1.30b
Earnings	JP¥328.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 07, 2022

Earnings per share (EPS)	107.46
Gross Margin	70.53%
Net Profit Margin	14.19%
Debt/Equity Ratio	0%

How did 3848 perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

40%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 3848 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
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3848?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3848. This is calculated by dividing 3848's market cap by their current preferred multiple.
What is 3848's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥4.66b

3848 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	0.4x
Enterprise Value/EBITDA	1.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 3848's PE Ratio compare to its peers?

3848 PE Ratio vs Peers

The above table shows the PE ratio for 3848 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	46.5x
4173 Wacul.Inc	24x	n/a	JP¥4.6b
4486 Unite and Grow	20x	15.5%	JP¥4.8b
4174 Appirits	44.6x	n/a	JP¥4.9b
7072 Intimate Merger	97.5x	n/a	JP¥4.2b
3848 Data Applications Company	14.2x	n/a	JP¥4.7b

Price-To-Earnings vs Peers: 3848 is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (46.5x).

Price to Earnings Ratio vs Industry

How does 3848's PE Ratio compare vs other companies in the JP IT Industry?

Price-To-Earnings vs Industry: 3848 is good value based on its Price-To-Earnings Ratio (14.2x) compared to the JP IT industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is 3848'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.

3848 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3848's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 3848 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3848 (¥1528) is trading below our estimate of fair value (¥3002.29)

Significantly Below Fair Value: 3848 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Data Applications Company 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

9.5%

Forecasted Software 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 Data Applications Company 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 Data Applications Company 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 Data Applications Company 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

-15.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3848 has high quality earnings.

Growing Profit Margin: 3848's current net profit margins (14.2%) are higher than last year (11.5%).

Past Earnings Growth Analysis

Earnings Trend: 3848's earnings have declined by 15.9% per year over the past 5 years.

Accelerating Growth: 3848's earnings growth over the past year (32.3%) exceeds its 5-year average (-15.9% per year).

Earnings vs Industry: 3848 earnings growth over the past year (32.3%) exceeded the IT industry 17.3%.

Return on Equity

High ROE: 3848's Return on Equity (8.6%) is considered low.

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Financial Health

How is Data Applications Company'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: 3848's short term assets (¥4.0B) exceed its short term liabilities (¥1.1B).

Long Term Liabilities: 3848's short term assets (¥4.0B) exceed its long term liabilities (¥78.0M).

Debt to Equity History and Analysis

Debt Level: 3848 is debt free.

Reducing Debt: 3848 has not had any debt for past 5 years.

Debt Coverage: 3848 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3848 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Data Applications Company current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.81%

Current Dividend Yield

Dividend Yield vs Market

Data Applications Company Dividend Yield vs Market

How does Data Applications Company dividend yield compare to the market?
Segment	Dividend Yield
Company (Data Applications Company)	2.8%
Market Bottom 25% (JP)	1.7%
Market Top 25% (JP)	3.8%
Industry Average (IT)	1.7%
Analyst forecast in 3 Years (Data Applications Company)	n/a

Notable Dividend: 3848's dividend (2.81%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 3848's dividend (2.81%) is low compared to the top 25% of dividend payers in the JP market (3.76%).

Stability and Growth of Payments

Stable Dividend: 3848's dividends per share have been stable in the past 10 years.

Growing Dividend: 3848's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.9%), 3848's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.8%), 3848'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?

1.8yrs

Average management tenure

CEO

Takeshi Yasuhara (56 yo)

7.33yrs

Tenure

Takeshi Yasuhara serves as President since April 2020 and CEO at Data Applications Company Limited and has been its Representative Director since June 2015. Takeshi Yasuhara had been a Executive Officer at...

Leadership Team

Experienced Management: 3848's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: 3848's board of directors are considered experienced (5.9 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

What is the ownership structure of 3848?
Owner Type	Number of Shares	Ownership Percentage
Private Companies	89,000	2.9%
Institutions	273,700	9.0%
Public Companies	634,000	20.8%
General Public	986,077	32.3%
Individual Insiders	1,069,414	35.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 14 shareholders own 67.69% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
20.77%	Hikari Tsushin, Inc.	634,000	¥968.8m	6.48%	no data
13.76%	Keita Hashimoto	420,000	¥641.8m	0%	no data
8.97%	FMR LLC	273,700	¥418.2m	0%	no data
7.29%	Yoshinobu Takeda	222,485	¥340.0m	0%	no data
6.36%	Naoki Nakano	194,100	¥296.6m	0%	no data
3.44%	Nobu Tsuga	105,100	¥160.6m	0%	no data
2.92%	Jisc System Co., Ltd.	89,000	¥136.0m	0%	no data
2.49%	Toshio Sudo	76,000	¥116.1m	0%	no data
0.79%	Makoto Iwashita	24,200	¥37.0m	8.52%	no data
0.26%	Takeshi Yasuhara	8,020	¥12.3m	63.01%	no data
0.2%	Takeshi Motomura	6,100	¥9.3m	22%	no data
0.19%	Takaaki Kaneko	5,809	¥8.9m	75.55%	no data
0.15%	Masataka Asano	4,500	¥6.9m	32.35%	no data
0.1%	Yasuyuki Itano	3,100	¥4.7m	0%	no data

Data	Last Updated (UTC time)
Company Analysis	2022/10/02 00:00
End of Day Share Price	2022/09/30 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31