Taiyo Yuden (TSE:6976) - Share price, News & Analysis

Q: What is the Fair Price of 6976 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6976 (¥4965) is trading below our estimate of [[fair value]] (¥9988.07)

6976 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

6976 Stock Overview

Taiyo Yuden Co., Ltd. develops, manufactures, and sells electronic components worldwide.

Rewards

Trading at 50.3% below our estimate of its fair value

Earnings are forecast to grow 6.15% per year

Earnings grew by 90% over the past year

Risk Analysis

Unstable dividend track record

Taiyo Yuden Competitors

Hirose ElectricLtd

TSE:6806

JP¥608.2b

IbidenLtd

TSE:4062

JP¥559.1b

Hamamatsu Photonics K.K

TSE:6965

JP¥857.8b

Alps Alpine

TSE:6770

JP¥297.5b

Price History & Performance

Summary of all time highs, changes and price drops for Taiyo Yuden
Historical stock prices
Current Share Price	JP¥4,965.00
52 Week High	JP¥7,710.00
52 Week Low	JP¥4,545.00
Beta	0.94
1 Month Change	-1.68%
3 Month Change	-12.28%
1 Year Change	-8.56%
3 Year Change	121.06%
5 Year Change	188.16%
Change since IPO	501.82%

Shareholder Returns

	6976	JP Electronic	JP Market
7D	0.4%	0.2%	1.9%
1Y	-8.6%	-9.9%	-6.2%

Return vs Industry: 6976 exceeded the JP Electronic industry which returned -9.9% over the past year.

Return vs Market: 6976 underperformed the JP Market which returned -6.2% over the past year.

Price Volatility

Is 6976's price volatile compared to industry and market?
6976 volatility
6976 Average Weekly Movement	5.4%
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: 6976 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6976's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1950	22,852	Shoichi Tosaka	https://www.ty-top.com

Taiyo Yuden Co., Ltd. develops, manufactures, and sells electronic components worldwide. It offers multilayer ceramic capacitors for use in smartphones, automobiles, and other devices; ferrite and applied products, such as inductors used in electronic equipment power and high-frequency circuits; integrated modules and devices, including film bulk acoustic resonator/surface acoustic wave devices for mobile communications and power supply modules; and other electronic components, such as energy devices used as backup power equipment for smart meters and other similar products, as well as peak current assistance for LED flashes. The company also provides noise suppression parts, such as bead inductors, common-mode choke coils, multilayer EMI suppression filters, and ring varistors; chip antennas; balun transformers; wireless modules; and aluminum electrolytic capacitors.

Taiyo Yuden Fundamentals Summary

How do Taiyo Yuden's earnings and revenue compare to its market cap?
6976 fundamental statistics
Market Cap	JP¥618.68b
Earnings (TTM)	JP¥54.36b
Revenue (TTM)	JP¥349.64b

11.4x

P/E Ratio

1.8x

P/S Ratio

Is 6976 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6976 income statement (TTM)
Revenue	JP¥349.64b
Cost of Revenue	JP¥224.65b
Gross Profit	JP¥124.98b
Other Expenses	JP¥70.62b
Earnings	JP¥54.36b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)	436.25
Gross Margin	35.75%
Net Profit Margin	15.55%
Debt/Equity Ratio	24.3%

How did 6976 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6976 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 6976?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6976. This is calculated by dividing 6976's market cap by their current preferred multiple.
What is 6976's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥618.68b

6976 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	1.7x
Enterprise Value/EBITDA	6x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

How does 6976's PE Ratio compare to its peers?

6976 PE Ratio vs Peers

The above table shows the PE ratio for 6976 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.5x
6806 Hirose ElectricLtd	19.3x	4.2%	JP¥608.2b
4062 IbidenLtd	13.6x	15.1%	JP¥559.1b
6965 Hamamatsu Photonics K.K	24.1x	5.1%	JP¥857.8b
6770 Alps Alpine	13x	10.6%	JP¥297.5b
6976 Taiyo Yuden	11.4x	6.2%	JP¥618.7b

Forward PE

Price-To-Earnings vs Peers: 6976 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (17.5x).

Price to Earnings Ratio vs Industry

How does 6976's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 6976 is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the JP Electronic industry average (11x)

Price to Earnings Ratio vs Fair Ratio

What is 6976'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.

6976 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	15.2x

Price-To-Earnings vs Fair Ratio: 6976 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

Share Price vs Fair Value

What is the Fair Price of 6976 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6976 (¥4965) is trading below our estimate of fair value (¥9988.07)

Significantly Below Fair Value: 6976 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 6976 is poor value based on its PEG Ratio (1.8x)

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Future Growth

How is Taiyo Yuden forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

6.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6976's forecast earnings growth (6.2% per year) is above the savings rate (0.02%).

Earnings vs Market: 6976's earnings (6.2% per year) are forecast to grow slower than the JP market (9% per year).

High Growth Earnings: 6976's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6976's revenue (6% per year) is forecast to grow faster than the JP market (4.5% per year).

High Growth Revenue: 6976's revenue (6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6976's Return on Equity is forecast to be low in 3 years time (16.1%).

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Past Performance

How has Taiyo Yuden 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

28.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6976 has high quality earnings.

Growing Profit Margin: 6976's current net profit margins (15.5%) are higher than last year (9.5%).

Past Earnings Growth Analysis

Earnings Trend: 6976's earnings have grown significantly by 28.7% per year over the past 5 years.

Accelerating Growth: 6976's earnings growth over the past year (90%) exceeds its 5-year average (28.7% per year).

Earnings vs Industry: 6976 earnings growth over the past year (90%) exceeded the Electronic industry 46%.

Return on Equity

High ROE: 6976's Return on Equity (18.1%) is considered low.

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Financial Health

How is Taiyo Yuden'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: 6976's short term assets (¥282.6B) exceed its short term liabilities (¥107.0B).

Long Term Liabilities: 6976's short term assets (¥282.6B) exceed its long term liabilities (¥67.2B).

Debt to Equity History and Analysis

Debt Level: 6976 has more cash than its total debt.

Reducing Debt: 6976's debt to equity ratio has reduced from 33.6% to 24.3% over the past 5 years.

Debt Coverage: 6976's debt is well covered by operating cash flow (92.2%).

Interest Coverage: 6976's interest payments on its debt are well covered by EBIT (748.8x coverage).

Balance Sheet

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Dividend

What is Taiyo Yuden 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
Future Dividend Coverage

1.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6976's dividend (1.81%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 6976's dividend (1.81%) is low compared to the top 25% of dividend payers in the JP market (3.74%).

Stability and Growth of Payments

Stable Dividend: 6976's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6976's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.5%), 6976's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.1%), 6976'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?

3.4yrs

Average management tenure

CEO

Shoichi Tosaka (67 yo)

6.58yrs

Tenure

Mr. Shoichi Tosaka has been Chief Executive Officer and President at Taiyo Yuden Co., Ltd., since November 04, 2015. Mr. Tosaka joined Taiyo Yuden Co., Ltd. in 1979, and was mainly engaged in materials dev...

Leadership Team

Experienced Management: 6976's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: 6976's board of directors are considered experienced (4 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	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31