JASDAQ:6957

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Shibaura ElectronicsLtd

Executive Summary

Shibaura Electronics Co.,Ltd. manufactures and sells thermistor elements, and products utilizing thermistor elements in Japan and internationally.

Rewards

Trading at 34.9% below its fair value

Earnings are forecast to grow 11.53% per year

Pays a reliable dividend of 3.19%

Risk Analysis

No risks detected for 6957 from our risk checks.


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.

Share Price & News

How has Shibaura ElectronicsLtd's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6957 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

6957

7.1%

JP Electronic

4.6%

JP Market


1 Year Return

-18.9%

6957

19.2%

JP Electronic

4.7%

JP Market

Return vs Industry: 6957 underperformed the JP Electronic industry which returned 17% over the past year.

Return vs Market: 6957 underperformed the JP Market which returned 3.7% over the past year.


Shareholder returns

6957IndustryMarket
7 Day-1.3%7.1%4.6%
30 Day1.4%10.6%9.6%
90 Day-6.0%9.3%4.2%
1 Year-16.1%-18.9%21.2%19.2%7.4%4.7%
3 Year-24.7%-29.8%25.2%19.3%6.1%-1.3%
5 Year18.3%4.4%31.3%20.7%10.7%-1.4%

Price Volatility Vs. Market

How volatile is Shibaura ElectronicsLtd's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6957 (¥2349) is trading below our estimate of fair value (¥3609.69)

Significantly Below Fair Value: 6957 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6957 is good value based on its PE Ratio (10.4x) compared to the Electronic industry average (15.4x).

PE vs Market: 6957 is good value based on its PE Ratio (10.4x) compared to the JP market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6957 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 6957 is good value based on its PB Ratio (0.8x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

How is Shibaura ElectronicsLtd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6957's forecast earnings growth (11.5% per year) is above the savings rate (0.05%).

Earnings vs Market: 6957's earnings (11.5% per year) are forecast to grow slower than the JP market (12.3% per year).

High Growth Earnings: 6957's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6957's revenue (4.3% per year) is forecast to grow faster than the JP market (3.1% per year).

High Growth Revenue: 6957's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 6957's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Shibaura ElectronicsLtd performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6957 has high quality earnings.

Growing Profit Margin: 6957's current net profit margins (6.7%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: 6957's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: 6957's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6957 had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the Electronic industry average (-14.7%).


Return on Equity

High ROE: 6957's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Shibaura ElectronicsLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 6957's short term assets (¥21.7B) exceed its short term liabilities (¥7.2B).

Long Term Liabilities: 6957's short term assets (¥21.7B) exceed its long term liabilities (¥2.2B).


Debt to Equity History and Analysis

Debt Level: 6957's debt to equity ratio (11.7%) is considered satisfactory.

Reducing Debt: 6957's debt to equity ratio has reduced from 15.5% to 11.7% over the past 5 years.

Debt Coverage: 6957's debt is well covered by operating cash flow (118%).

Interest Coverage: 6957's interest payments on its debt are well covered by EBIT (2292x coverage).


Balance Sheet


Next Steps

Dividend

What is Shibaura ElectronicsLtd's current dividend yield, its reliability and sustainability?

3.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6957's dividend (3.19%) is higher than the bottom 25% of dividend payers in the JP market (1.46%).

High Dividend: 6957's dividend (3.19%) is low compared to the top 25% of dividend payers in the JP market (3.4%).


Stability and Growth of Payments

Stable Dividend: 6957's dividends per share have been stable in the past 10 years.

Growing Dividend: 6957's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.1%), 6957's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Akira Kasai

1.33yrs

Tenure

Mr. Akira Kasai has been the President of Shibaura Electronics Co., Ltd. since 2019. 


Leadership Team

NamePositionTenureCompensationOwnership
Akira Kasai
President1.33yrsno data0.0052% ¥939.9k
Noriyuki Nakayama
GM of Technology Division4.83yrsno datano data
Kenichi Nishinuma
Managing Director and General Manager of Sales Division 7.33yrsno datano data
Takumi Hamada
General Manager of Manufacturing and Director8.83yrsno data0.057% ¥10.3m
Takeshi Yamashita
Dy GM-Technology div4.83yrsno datano data
Kazuo Hosoi
Manager of Business Department and Director8.83yrsno data0.040% ¥7.3m

6.6yrs

Average Tenure

63yo

Average Age

Experienced Management: 6957's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Noriyuki Nakayama
GM of Technology Division4.83yrsno datano data
Takumi Hamada
General Manager of Manufacturing and Director8.83yrsno data0.057% ¥10.3m
Takeshi Yamashita
Dy GM-Technology div4.83yrsno datano data
Kazuo Hosoi
Manager of Business Department and Director8.83yrsno data0.040% ¥7.3m
Kazunao Kudo
Director1.83yrsno datano data
Tatsumi Kyoya
Full-time Audit & Supervisory Board Member1.83yrsno data0.29% ¥52.1m
Tetsu Hirowatari
External Auditor19.83yrsno datano data
Toyohide Kudo
Director13yrsno datano data
Kenichi Asano
External Auditor8.83yrsno datano data
Shozo Saito
External Director7.83yrsno datano data

8.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 6957's board of directors are considered experienced (8.3 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.


Top Shareholders

Company Information

Shibaura Electronics Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shibaura Electronics Co.,Ltd.
  • Ticker: 6957
  • Exchange: JASDAQ
  • Founded: 1953
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥18.109b
  • Shares outstanding: 7.71m
  • Website: https://www.shibauraelectronics.com

Number of Employees


Location

  • Shibaura Electronics Co.,Ltd.
  • Sanshoku Building
  • 2-1-24, Kamiochiai
  • Saitama
  • Saitama
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6957JASDAQ (TSE JASDAQ)YesCommon StockJPJPYJan 1992

Biography

Shibaura Electronics Co.,Ltd. manufactures and sells thermistor elements, and products utilizing thermistor elements in Japan and internationally. The company offers temperature sensors, humidity sensors, temperature controllers, anemometers, etc. Its products are used in automobiles, air conditioners, home appliances, housing equipment, industrial equipment, and printers. The company was founded in 1953 and is headquartered in Saitama, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 16:05
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.