Kyocera (TSE:6971) - Share price, News & Analysis

Q: What is the Fair Price of 6971 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6971 (¥7484) is trading below our estimate of [[fair value]] (¥9517.54)

6971 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

6971 Stock Overview

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally.

Rewards

Trading at 21.4% below our estimate of its fair value

Earnings are forecast to grow 4.82% per year

Earnings grew by 45.2% over the past year

Risk Analysis

Dividend of 2.67% is not well covered by earnings

Kyocera Competitors

TDK

TSE:6762

JP¥1.8t

Murata Manufacturing

TSE:6981

JP¥5.0t

OMRON

TSE:6645

JP¥1.5t

Hamamatsu Photonics K.K

TSE:6965

JP¥973.9b

Price History & Performance

Summary of all time highs, changes and price drops for Kyocera
Historical stock prices
Current Share Price	JP¥7,484.00
52 Week High	JP¥7,618.00
52 Week Low	JP¥6,055.00
Beta	0.60
1 Month Change	8.01%
3 Month Change	9.78%
1 Year Change	11.35%
3 Year Change	15.78%
5 Year Change	12.37%
Change since IPO	266.86%

Shareholder Returns

	6971	JP Electronic	JP Market
7D	1.6%	4.2%	0.5%
1Y	11.4%	-5.4%	-0.09%

Return vs Industry: 6971 exceeded the JP Electronic industry which returned -5.4% over the past year.

Return vs Market: 6971 exceeded the JP Market which returned -0.1% over the past year.

Price Volatility

Is 6971's price volatile compared to industry and market?
6971 volatility
6971 Average Weekly Movement	2.6%
Electronic Industry Average Movement	4.2%
Market Average Movement	3.9%
10% most volatile stocks in JP Market	8.1%
10% least volatile stocks in JP Market	2.1%

Stable Share Price: 6971 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6971's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	83,001	Hideo Tanimoto	https://global.kyocera.com

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The company offers fine ceramic components; automotive components; optical components; and inorganic and organic ceramic packages, and boards for use in industrial machinery, general industrial, smartphones and communication infrastructures, and automotive-related markets.

Kyocera Fundamentals Summary

How do Kyocera's earnings and revenue compare to its market cap?
6971 fundamental statistics
Market Cap	JP¥2.69t
Earnings (TTM)	JP¥157.63b
Revenue (TTM)	JP¥1.91t

17.0x

P/E Ratio

1.4x

P/S Ratio

Is 6971 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6971 income statement (TTM)
Revenue	JP¥1.91t
Cost of Revenue	JP¥1.37t
Gross Profit	JP¥537.17b
Other Expenses	JP¥379.54b
Earnings	JP¥157.63b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	439.20
Gross Margin	28.12%
Net Profit Margin	8.25%
Debt/Equity Ratio	3.1%

How did 6971 perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

41%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6971 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 6971?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6971. This is calculated by dividing 6971's market cap by their current preferred multiple.
What is 6971's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥2.69t

6971 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	1.3x
Enterprise Value/EBITDA	9.1x
PEG Ratio	3.5x

Price to Earnings Ratio vs Peers

How does 6971's PE Ratio compare to its peers?

6971 PE Ratio vs Peers

The above table shows the PE ratio for 6971 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.9x
6762 TDK	9.7x	6.3%	JP¥1.8t
6981 Murata Manufacturing	15.9x	7.7%	JP¥5.0t
6645 OMRON	30.5x	11.0%	JP¥1.5t
6965 Hamamatsu Photonics K.K	27.4x	5.3%	JP¥973.9b
6971 Kyocera	17x	4.8%	JP¥2.7t

Price-To-Earnings vs Peers: 6971 is good value based on its Price-To-Earnings Ratio (17x) compared to the peer average (20.9x).

Price to Earnings Ratio vs Industry

How does 6971's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 6971 is expensive based on its Price-To-Earnings Ratio (17x) compared to the JP Electronic industry average (11.5x)

Price to Earnings Ratio vs Fair Ratio

What is 6971'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.

6971 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17x
Fair PE Ratio	14.8x

Price-To-Earnings vs Fair Ratio: 6971 is expensive based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (14.8x).

Share Price vs Fair Value

What is the Fair Price of 6971 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6971 (¥7484) is trading below our estimate of fair value (¥9517.54)

Significantly Below Fair Value: 6971 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 less than 20% higher than the current share price.

Discover undervalued companies

Future Growth

How is Kyocera forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

4.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6971's forecast earnings growth (4.8% per year) is above the savings rate (0.04%).

Earnings vs Market: 6971's earnings (4.8% per year) are forecast to grow slower than the JP market (8.6% per year).

High Growth Earnings: 6971's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6971's revenue (2.7% per year) is forecast to grow slower than the JP market (4.4% per year).

High Growth Revenue: 6971's revenue (2.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6971's Return on Equity is forecast to be low in 3 years time (5.9%).

Discover growth companies

Past Performance

How has Kyocera 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

5.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6971 has high quality earnings.

Growing Profit Margin: 6971's current net profit margins (8.3%) are higher than last year (6.7%).

Past Earnings Growth Analysis

Earnings Trend: 6971's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: 6971's earnings growth over the past year (45.2%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: 6971 earnings growth over the past year (45.2%) exceeded the Electronic industry 41.5%.

Return on Equity

High ROE: 6971's Return on Equity (5.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Kyocera's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 6971's short term assets (¥1,364.3B) exceed its short term liabilities (¥551.8B).

Long Term Liabilities: 6971's short term assets (¥1,364.3B) exceed its long term liabilities (¥499.9B).

Debt to Equity History and Analysis

Debt Level: 6971 has more cash than its total debt.

Reducing Debt: 6971's debt to equity ratio has increased from 1.1% to 3.1% over the past 5 years.

Debt Coverage: 6971's debt is well covered by operating cash flow (168.2%).

Interest Coverage: 6971 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

What is Kyocera 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

2.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6971's dividend (2.67%) is higher than the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 6971's dividend (2.67%) is low compared to the top 25% of dividend payers in the JP market (3.62%).

Stability and Growth of Payments

Stable Dividend: 6971's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6971's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.1%), 6971's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (1441.9%), 6971's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

9.3yrs

Average management tenure

CEO

Hideo Tanimoto (62 yo)

5.33yrs

Tenure

JP¥167,000,000

Compensation

Mr. Hideo Tanimoto has been the President of Kyocera Corporation since April 2017 and also serves as Chief Executive Officer. Mr. Tanimoto served as the General Manager of Corporate Fine Ceramics Group at...

CEO Compensation Analysis

Compensation vs Market: Hideo's total compensation ($USD1.23M) is about average for companies of similar size in the JP market ($USD1.51M).

Compensation vs Earnings: Hideo's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: 6971's management team is seasoned and experienced (9.3 years average tenure).

Board Members

Experienced Board: 6971's board of directors are seasoned and experienced ( 10.8 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	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31