TSE:6448

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Brother Industries

Executive Summary

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, rest of Asia, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6448 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

6448

1.8%

JP Tech

0.3%

JP Market


1 Year Return

-19.5%

6448

-21.2%

JP Tech

-0.5%

JP Market

Return vs Industry: 6448 exceeded the JP Tech industry which returned -22.5% over the past year.

Return vs Market: 6448 underperformed the JP Market which returned -0.7% over the past year.


Shareholder returns

6448IndustryMarket
7 Day2.0%1.8%0.3%
30 Day-1.1%0.09%0.5%
90 Day-13.4%-6.0%4.0%
1 Year-17.2%-19.5%-18.4%-21.2%2.0%-0.5%
3 Year-36.2%-41.3%-32.0%-38.8%0.6%-6.4%
5 Year18.1%4.0%-18.3%-30.8%22.0%8.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6448 (¥1621) is trading below our estimate of fair value (¥1697.63)

Significantly Below Fair Value: 6448 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6448 is good value based on its PE Ratio (9.7x) compared to the JP Tech industry average (19.1x).

PE vs Market: 6448 is good value based on its PE Ratio (9.7x) compared to the JP market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 6448 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 6448 is overvalued based on its PB Ratio (1x) compared to the JP Tech industry average (0.8x).


Next Steps

Future Growth

How is Brother Industries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6448's forecast earnings growth (6.4% per year) is above the savings rate (0.05%).

Earnings vs Market: 6448's earnings (6.4% per year) are forecast to grow slower than the JP market (17.4% per year).

High Growth Earnings: 6448's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6448's revenue (2.3% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 6448's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6448's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Brother Industries performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6448 has high quality earnings.

Growing Profit Margin: 6448's current net profit margins (7.1%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: 6448's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: 6448's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6448 had negative earnings growth (-13.8%) over the past year, making it difficult to compare to the Tech industry average (-12%).


Return on Equity

High ROE: 6448's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is Brother Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 6448's short term assets (¥407.9B) exceed its short term liabilities (¥167.2B).

Long Term Liabilities: 6448's short term assets (¥407.9B) exceed its long term liabilities (¥117.4B).


Debt to Equity History and Analysis

Debt Level: 6448's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: 6448's debt to equity ratio has reduced from 46.4% to 19.4% over the past 5 years.

Debt Coverage: 6448's debt is well covered by operating cash flow (108.1%).

Interest Coverage: 6448's interest payments on its debt are well covered by EBIT (66.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Brother Industries's current dividend yield, its reliability and sustainability?

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6448's dividend (2.1%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 6448's dividend (2.1%) is low compared to the top 25% of dividend payers in the JP market (3.19%).


Stability and Growth of Payments

Stable Dividend: 6448's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6448's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), 6448'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?

1.8yrs

Average management tenure


CEO

Ichiro Sasaki (63 yo)

2.33yrs

Tenure

Mr. Ichiro Sasaki has been President & Representative Director at Brother Industries, Ltd. since June 26, 2018. Mr. Ichiro Sasaki served as the Sr. Managing Executive Officer, Head of Domino Bus & Industri ...


Leadership Team

NamePositionTenureCompensationOwnership
Ichiro Sasaki
Representative Director & President2.33yrsno data0.015%
¥ 64.8m
Kazufumi Ikeda
Managing Exec Officer and In-charge of Human Resources Dept0.50yrno datano data
Mitsuyasu Kyuno
Managing Exec. Officer and Head of Personal & Home Business Divisionno datano datano data
Jun Kamiya
Managing Exec. Officer6.33yrsno data0.0077%
¥ 32.4m
Tasuku Kawanabe
Senior Managing Exec. Officerno datano data0.0065%
¥ 27.5m
Tadashi Ishiguro
Senior Managing Exec. Officer6.33yrsno data0.0092%
¥ 38.9m
Yuichi Tada
Managing Exec. Officerno datano data0.0035%
¥ 14.6m
Hiroyuki Wakahara
Managing Executive Officerno datano datano data
Satoru Kuwabara
Managing Executive Officer1.75yrsno datano data
Taizo Murakami
Managing Executive Officer1.75yrsno datano data
Tsuyoshi Suzuki
Managing Executive Officer1.75yrsno datano data
Masahiko Suzuki
Executive Officerno datano datano data

1.8yrs

Average Tenure

Experienced Management: 6448's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ichiro Sasaki
Representative Director & President2.33yrsno data0.015%
¥ 64.8m
Jun Kamiya
Managing Exec. Officer6.33yrsno data0.0077%
¥ 32.4m
Tasuku Kawanabe
Senior Managing Exec. Officerno datano data0.0065%
¥ 27.5m
Tadashi Ishiguro
Senior Managing Exec. Officer6.33yrsno data0.0092%
¥ 38.9m
Yuichi Tada
Managing Exec. Officerno datano data0.0035%
¥ 14.6m
Naoki Hidaka
Independent Outside Director0.75yrno datano data
Toshikazu Koike
Chairman2.33yrsno data0.011%
¥ 45.4m
Koichi Fukaya
Independent Outside Director8.33yrsno data0.0042%
¥ 17.8m
Keisuke Takeuchi
Independent Outside Directorno datano data0.0011%
¥ 4.8m
Aya Shirai
Independent Outside Director1.75yrsno datano data
Kazunari Uchida
Outside Director & Member of Independent Advisory Committee6.33yrsno datano data
Hideaki Iwatani
Member of Independent Advisory Committeeno datano datano data

6.3yrs

Average Tenure

67yo

Average Age

Experienced Board: 6448's board of directors are considered experienced (6.3 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

Brother Industries, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brother Industries, Ltd.
  • Ticker: 6448
  • Exchange: TSE
  • Founded: 1908
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: JP¥421.223b
  • Shares outstanding: 259.85m
  • Website: https://global.brother

Number of Employees


Location

  • Brother Industries, Ltd.
  • 15-1, Naeshiro-cho
  • Mizuho-ku
  • Nagoya
  • Aichi
  • 467-8561
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRTH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6448TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
BI5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
BRTH.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 1992

Biography

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, rest of Asia, and internationally. It operates through Printing & Solutions Business, P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 15:19
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.