Kyoritsu Electric (TSE:6874) - Share price, News & Analysis

6874 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	5/6

6874 Stock Overview

Kyoritsu Electric Corporation offers various systems, testing and measuring instruments, etc.

Rewards

Trading at 45.2% below our estimate of its fair value

Pays a reliable dividend of 2.85%

Risk Analysis

Earnings have declined by 1.3% per year over past 5 years

Does not have a meaningful market cap (¥8B)

Kyoritsu Electric Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kyoritsu Electric
Historical stock prices
Current Share Price	JP¥1,932.00
52 Week High	JP¥2,230.00
52 Week Low	JP¥1,761.00
Beta	1.02
1 Month Change	0.21%
3 Month Change	1.63%
1 Year Change	-8.09%
3 Year Change	-20.07%
5 Year Change	-9.55%
Change since IPO	85.47%

Shareholder Returns

	6874	JP Electronic	JP Market
7D	-1.8%	0.2%	1.9%
1Y	-8.1%	-9.9%	-6.2%

Return vs Industry: 6874 exceeded the JP Electronic industry which returned -9.9% over the past year.

Return vs Market: 6874 underperformed the JP Market which returned -6.2% over the past year.

Price Volatility

Is 6874's price volatile compared to industry and market?
6874 volatility
6874 Average Weekly Movement	3.1%
Electronic Industry Average Movement	4.6%
Market Average Movement	4.2%
10% most volatile stocks in JP Market	8.5%
10% least volatile stocks in JP Market	2.3%

Stable Share Price: 6874 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6874's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1957	671	Nobuyuki Nishi	https://www.kdwan.co.jp

Kyoritsu Electric Corporation offers various systems, testing and measuring instruments, etc. primarily in Japan. It provides process automation products, such as integrated production control systems, network-based control systems, and compact control systems, as well as flow, pressure, and temperature sensors; and factory automation products and services comprising Web camera monitoring systems and system integration services. The company also provides test and measurement products, including automatic optical measurement products, in-circuit testers, vibroducers, combination testers, PC-based function testers, PC-based multi meters and oscilloscopes, data acquisition systems, and digital oscilloscopes; laboratory automation products; and open network products, such as Linux and diskless servers.

Kyoritsu Electric Fundamentals Summary

How do Kyoritsu Electric's earnings and revenue compare to its market cap?
6874 fundamental statistics
Market Cap	JP¥7.77b
Earnings (TTM)	JP¥966.00m
Revenue (TTM)	JP¥27.87b

8.0x

P/E Ratio

0.3x

P/S Ratio

Is 6874 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6874 income statement (TTM)
Revenue	JP¥27.87b
Cost of Revenue	JP¥22.59b
Gross Profit	JP¥5.28b
Other Expenses	JP¥4.31b
Earnings	JP¥966.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 08, 2022

Earnings per share (EPS)	240.04
Gross Margin	18.93%
Net Profit Margin	3.47%
Debt/Equity Ratio	12.6%

How did 6874 perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

23%

Payout Ratio

Does 6874 pay a reliable dividends?

See 6874 dividend history and benchmarks

When do you need to buy 6874 by to receive an upcoming dividend?
Kyoritsu Electric dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Sep 29 2022
Days until Ex dividend	3 days
Days until Dividend pay date	95 days

Does 6874 pay a reliable dividends?

See 6874 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 6874 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
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6874?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6874. This is calculated by dividing 6874's market cap by their current preferred multiple.
What is 6874's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥7.77b

6874 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	0.1x
Enterprise Value/EBITDA	2.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6874's PE Ratio compare to its peers?

6874 PE Ratio vs Peers

The above table shows the PE ratio for 6874 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.6x

Forward PE

Price-To-Earnings vs Peers: 6874 is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does 6874's PE Ratio compare vs other companies in the Japanese Electronic Industry?

Price-To-Earnings vs Industry: 6874 is good value based on its Price-To-Earnings Ratio (8x) compared to the JP Electronic industry average (11x)

Price to Earnings Ratio vs Fair Ratio

What is 6874'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.

6874 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6874's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6874 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6874 (¥1932) is trading below our estimate of fair value (¥3524.31)

Significantly Below Fair Value: 6874 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6874's PEG Ratio to determine if it is good value.

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Future Growth

How is Kyoritsu Electric 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

9.0%

Forecasted Tech 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 Kyoritsu Electric 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 Kyoritsu Electric 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 Kyoritsu Electric performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-1.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6874 has high quality earnings.

Growing Profit Margin: 6874's current net profit margins (3.5%) are lower than last year (3.5%).

Past Earnings Growth Analysis

Earnings Trend: 6874's earnings have declined by 1.3% per year over the past 5 years.

Accelerating Growth: 6874's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6874 had negative earnings growth (-3%) over the past year, making it difficult to compare to the Electronic industry average (46.9%).

Return on Equity

High ROE: 6874's Return on Equity (6.8%) is considered low.

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Financial Health

How is Kyoritsu Electric'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: 6874's short term assets (¥18.5B) exceed its short term liabilities (¥10.0B).

Long Term Liabilities: 6874's short term assets (¥18.5B) exceed its long term liabilities (¥1.3B).

Debt to Equity History and Analysis

Debt Level: 6874 has more cash than its total debt.

Reducing Debt: 6874's debt to equity ratio has reduced from 33.2% to 12.6% over the past 5 years.

Debt Coverage: 6874's debt is well covered by operating cash flow (48.7%).

Interest Coverage: 6874 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Kyoritsu Electric current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.85%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 6874's dividend (2.85%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 6874's dividend (2.85%) is low compared to the top 25% of dividend payers in the JP market (3.74%).

Stability and Growth of Payments

Stable Dividend: 6874's dividends per share have been stable in the past 10 years.

Growing Dividend: 6874's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.9%), 6874's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.6%), 6874'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?

20.6yrs

Average management tenure

CEO

Nobuyuki Nishi (65 yo)

5.75yrs

Tenure

Nobuyuki Nishi serves as President and Representative Director at Kyoritsu Electric Corporation since September 28, 2016. He served as Director of Kyoritsu Electric Corporation since April 1986, Branch Man...

Leadership Team

Experienced Management: 6874's management team is seasoned and experienced (20.6 years average tenure).

Board Members

Experienced Board: 6874's board of directors are considered experienced (7.8 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	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30