TSE:5344

Stock Analysis Report

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Executive Summary

Maruwa Co., Ltd. produces and sells ceramics and electronic parts in Japan, Europe, the United States, China, Taiwan, Korea, Malaysia, and India. More Details

Rewards

Earnings are forecast to grow 5.68% per year

Earnings grew by 14.4% over the past year

Risk Analysis

No risks detected for 5344 from our risk checks.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 5344 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 5344's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.1%

5344

-7.2%

JP Electronic

-3.2%

JP Market


1 Year Return

47.0%

5344

37.3%

JP Electronic

24.1%

JP Market

Return vs Industry: 5344 exceeded the JP Electronic industry which returned 37.3% over the past year.

Return vs Market: 5344 exceeded the JP Market which returned 24.1% over the past year.


Shareholder returns

5344IndustryMarket
7 Day-4.1%-7.2%-3.2%
30 Day-12.6%-9.3%0.2%
90 Day-7.8%1.1%4.5%
1 Year48.0%47.0%39.5%37.3%27.2%24.1%
3 Year25.0%22.4%37.6%31.3%17.2%9.1%
5 Year302.1%285.6%112.7%96.1%52.7%35.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5344 (¥10100) is trading above our estimate of fair value (¥8193.45)

Significantly Below Fair Value: 5344 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5344 is poor value based on its PE Ratio (18.1x) compared to the JP Electronic industry average (16.7x).

PE vs Market: 5344 is poor value based on its PE Ratio (18.1x) compared to the JP market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: 5344 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 5344 is overvalued based on its PB Ratio (1.9x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

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

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5344's forecast earnings growth (5.7% per year) is above the savings rate (0%).

Earnings vs Market: 5344's earnings (5.7% per year) are forecast to grow slower than the JP market (17.5% per year).

High Growth Earnings: 5344's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5344's revenue (4.9% per year) is forecast to grow slower than the JP market (5.7% per year).

High Growth Revenue: 5344's revenue (4.9% 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 5344's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Maruwa performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5344 has high quality earnings.

Growing Profit Margin: 5344's current net profit margins (16.8%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: 5344's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: 5344's earnings growth over the past year (14.4%) is below its 5-year average (21.9% per year).

Earnings vs Industry: 5344 earnings growth over the past year (14.4%) exceeded the Electronic industry -5.3%.


Return on Equity

High ROE: 5344's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Maruwa's financial position?


Financial Position Analysis

Short Term Liabilities: 5344's short term assets (¥51.9B) exceed its short term liabilities (¥9.4B).

Long Term Liabilities: 5344's short term assets (¥51.9B) exceed its long term liabilities (¥2.2B).


Debt to Equity History and Analysis

Debt Level: 5344's debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: 5344's debt to equity ratio has increased from 1.1% to 4.4% over the past 5 years.

Debt Coverage: 5344's debt is well covered by operating cash flow (392.4%).

Interest Coverage: 5344 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.71%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 5344's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.26%).

High Dividend: 5344's dividend (0.71%) is low compared to the top 25% of dividend payers in the JP market (2.91%).


Stability and Growth of Payments

Stable Dividend: 5344's dividends per share have been stable in the past 10 years.

Growing Dividend: 5344's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.7%), 5344's dividend payments are thoroughly 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

  • Explore strong dividend paying companies in the Tech industry.

Management

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

5.8yrs

Average management tenure


CEO

Sei Kanbe (71 yo)

28.67yrs

Tenure

Mr. Sei kanbe has been the President and Representative Director of Maruwa Company Limited. since June 1992 .


Leadership Team

NamePositionTenureCompensationOwnership
Sei Kanbe
President & Representative Director28.67yrsno data2.43%
¥ 3.0b
Tamaki Nozoki
GM of Administrative Divisionno datano data0.044%
¥ 54.5m
Akira Uchida
GM of Sales Division5.83yrsno data0.086%
¥ 107.1m
Manimaran Anthony
GM of Overseas Business Division & Director19.67yrsno datano data
Toshiro Kanbe
GM of Components Business Division & Director4.67yrsno data0.17%
¥ 208.3m

5.8yrs

Average Tenure

58yo

Average Age

Experienced Management: 5344's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sei Kanbe
President & Representative Director28.67yrsno data2.43%
¥ 3.0b
Manimaran Anthony
GM of Overseas Business Division & Director19.67yrsno datano data
Toshiro Kanbe
GM of Components Business Division & Director4.67yrsno data0.17%
¥ 208.3m
Shigehiro Matsumoto
External Auditor13.67yrsno datano data
Haruyuki Hayashi
Director19.67yrsno data0.049%
¥ 61.1m
Masahiko Mitsuoka
External Auditor5.67yrsno datano data
Akihide Kato
External Auditor1.67yrsno datano data

13.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 5344's board of directors are seasoned and experienced ( 13.7 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

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


Key Information

  • Name: Maruwa Co., Ltd.
  • Ticker: 5344
  • Exchange: TSE
  • Founded: 1973
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥124.591b
  • Shares outstanding: 12.34m
  • Website: https://www.maruwa-g.com

Number of Employees


Location

  • Maruwa Co., Ltd.
  • 3-83, Minamihonjigahara-cho
  • Owariasahi
  • Aichi
  • 488-0044
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5344TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYAug 1995
MAWLSE (London Stock Exchange)YesCommon StockGBJPYAug 1995
6X5DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1995

Biography

Maruwa Co., Ltd. produces and sells ceramics and electronic parts in Japan, Europe, the United States, China, Taiwan, Korea, Malaysia, and India. The company offers ceramics, including ceramic substrates a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 08:16
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.