Meiko Electronics (TSE:6787) - Share price, News & Analysis

Q: What is the Fair Price of 6787 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6787 (¥3340) is trading below our estimate of [[fair value]] (¥7101.06)

6787 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	5/6
Financial Health	4/6
Dividends	3/6

6787 Stock Overview

Meiko Electronics Co., Ltd. engages in the design, manufacture, and sale of printed circuit boards (PCBs) and auxiliary electronics in Japan, rest of Asia, North America, Europe, and internationally.

Rewards

Trading at 53% below our estimate of its fair value

Earnings are forecast to grow 9.04% per year

Earnings grew by 108.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Volatile share price over the past 3 months

Meiko Electronics Competitors

KOA

TSE:6999

JP¥82.0b

Hosiden

TSE:6804

JP¥84.4b

Iriso Electronics

TSE:6908

JP¥94.0b

Nichicon

TSE:6996

JP¥97.0b

Price History & Performance

Summary of all time highs, changes and price drops for Meiko Electronics
Historical stock prices
Current Share Price	JP¥3,340.00
52 Week High	JP¥4,880.00
52 Week Low	JP¥2,474.00
Beta	1.43
1 Month Change	6.37%
3 Month Change	-20.19%
1 Year Change	28.46%
3 Year Change	114.79%
5 Year Change	95.67%
Change since IPO	480.87%

Shareholder Returns

	6787	JP Electronic	JP Market
7D	7.1%	3.8%	2.5%
1Y	28.5%	-3.3%	1.9%

Return vs Industry: 6787 exceeded the JP Electronic industry which returned -3.3% over the past year.

Return vs Market: 6787 exceeded the JP Market which returned 1.9% over the past year.

Price Volatility

Is 6787's price volatile compared to industry and market?
6787 volatility
6787 Average Weekly Movement	6.4%
Electronic Industry Average Movement	4.0%
Market Average Movement	3.8%
10% most volatile stocks in JP Market	7.8%
10% least volatile stocks in JP Market	2.0%

Stable Share Price: 6787 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6787's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
1975	13,637	Yuichiro Naya	https://www.meiko-elec.com

Meiko Electronics Co., Ltd. engages in the design, manufacture, and sale of printed circuit boards (PCBs) and auxiliary electronics in Japan, rest of Asia, North America, Europe, and internationally. Its principal products include double-sided/multi-layer through-hole PCBs, HDI PCBs, flexible PCBs, flex-rigid PCBs, high electric current PCBs, heat dissipation PCBs, embedded devices PCBs, solder stencils, PCB testers, and imaging devices and systems. The company also provides circuit design and electronic manufacturing services.

Meiko Electronics Fundamentals Summary

How do Meiko Electronics's earnings and revenue compare to its market cap?
6787 fundamental statistics
Market Cap	JP¥85.64b
Earnings (TTM)	JP¥13.59b
Revenue (TTM)	JP¥158.01b

6.3x

P/E Ratio

0.5x

P/S Ratio

Is 6787 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6787 income statement (TTM)
Revenue	JP¥158.01b
Cost of Revenue	JP¥129.41b
Gross Profit	JP¥28.60b
Other Expenses	JP¥15.01b
Earnings	JP¥13.59b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	530.10
Gross Margin	18.10%
Net Profit Margin	8.60%
Debt/Equity Ratio	114.4%

How did 6787 perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

9%

Payout Ratio

Does 6787 pay a reliable dividends?

See 6787 dividend history and benchmarks

When do you need to buy 6787 by to receive an upcoming dividend?
Meiko Electronics dividend dates
Ex Dividend Date	Sep 29 2022
Dividend Pay Date	Nov 30 2022
Days until Ex dividend	42 days
Days until Dividend pay date	104 days

Does 6787 pay a reliable dividends?

See 6787 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 6787 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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 6787?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6787. This is calculated by dividing 6787's market cap by their current preferred multiple.
What is 6787's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥85.64b

6787 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	0.9x
Enterprise Value/EBITDA	6.8x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 6787's PE Ratio compare to its peers?

6787 PE Ratio vs Peers

The above table shows the PE ratio for 6787 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.6x
6999 KOA	14.4x	13.9%	JP¥82.0b
6804 Hosiden	4.9x	-38.5%	JP¥84.4b
6908 Iriso Electronics	21.9x	17.8%	JP¥94.0b
6996 Nichicon	9.2x	-0.2%	JP¥97.0b
6787 Meiko Electronics	6.3x	9.0%	JP¥85.6b

Price-To-Earnings vs Peers: 6787 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (12.6x).

Price to Earnings Ratio vs Industry

How does 6787's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 6787 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the JP Electronic industry average (11.7x)

Price to Earnings Ratio vs Fair Ratio

What is 6787'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.

6787 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.3x
Fair PE Ratio	14.9x

Price-To-Earnings vs Fair Ratio: 6787 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).

Share Price vs Fair Value

What is the Fair Price of 6787 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6787 (¥3340) is trading below our estimate of fair value (¥7101.06)

Significantly Below Fair Value: 6787 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: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Meiko Electronics forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6787's forecast earnings growth (9% per year) is above the savings rate (0.04%).

Earnings vs Market: 6787's earnings (9% per year) are forecast to grow faster than the JP market (8.6% per year).

High Growth Earnings: 6787's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6787's revenue (10.4% per year) is forecast to grow faster than the JP market (4.3% per year).

High Growth Revenue: 6787's revenue (10.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6787's Return on Equity is forecast to be low in 3 years time (17%).

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Past Performance

How has Meiko Electronics performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

17.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6787 has high quality earnings.

Growing Profit Margin: 6787's current net profit margins (8.6%) are higher than last year (5.1%).

Past Earnings Growth Analysis

Earnings Trend: 6787's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: 6787's earnings growth over the past year (108.3%) exceeds its 5-year average (17% per year).

Earnings vs Industry: 6787 earnings growth over the past year (108.3%) exceeded the Electronic industry 28.2%.

Return on Equity

High ROE: 6787's Return on Equity (19.6%) is considered low.

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Financial Health

How is Meiko Electronics's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6787's short term assets (¥93.0B) exceed its short term liabilities (¥81.3B).

Long Term Liabilities: 6787's short term assets (¥93.0B) exceed its long term liabilities (¥39.6B).

Debt to Equity History and Analysis

Debt Level: 6787's net debt to equity ratio (91.8%) is considered high.

Reducing Debt: 6787's debt to equity ratio has reduced from 151.4% to 114.4% over the past 5 years.

Debt Coverage: 6787's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: 6787's interest payments on its debt are well covered by EBIT (22.7x coverage).

Balance Sheet

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Dividend

What is Meiko Electronics's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

1.50%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 6787's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 6787's dividend (1.5%) is low compared to the top 25% of dividend payers in the JP market (3.61%).

Stability and Growth of Payments

Stable Dividend: 6787's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6787's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.5%), 6787's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (64%), 6787's dividend payments are covered by cash flows.

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Management

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

6.4yrs

Average management tenure

CEO

Yuichiro Naya (79 yo)

16.17yrs

Tenure

Mr. Yuichiro Naya has been the President of Meiko Electronics Co., Ltd. since June 2006 and also serves as its Chief Executive Officer. Mr. Naya has been the President of Miyagi Meiko K.K. since December...

Leadership Team

Experienced Management: 6787's management team is seasoned and experienced (6.4 years average tenure).

Board Members

Experienced Board: 6787's board of directors are considered experienced (3.6 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	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31