TSE:7701

Stock Analysis Report

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Market Cap

JP¥1.2t

Last Updated

2021/06/20 15:43 UTC

Data Sources

Company Financials +

Executive Summary

Shimadzu Corporation manufactures and sells analytical and measuring instruments, medical systems, industrial machinery, and aircraft equipment worldwide. More Details

Rewards

Earnings are forecast to grow 8.85% per year

Earnings grew by 13.6% over the past year

Risk Analysis

No risks detected for 7701 from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 7701 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7701's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

7701

2.9%

JP Electronic

-0.4%

JP Market


1 Year Return

45.6%

7701

28.0%

JP Electronic

21.8%

JP Market

Return vs Industry: 7701 exceeded the JP Electronic industry which returned 28% over the past year.

Return vs Market: 7701 exceeded the JP Market which returned 21.8% over the past year.


Shareholder returns

7701IndustryMarket
7 Day2.2%2.9%-0.4%
30 Day7.8%6.0%2.6%
90 Day6.1%-0.1%-2.8%
1 Year47.0%45.6%29.5%28.0%24.4%21.8%
3 Year31.6%27.9%39.6%33.8%19.4%11.3%
5 Year187.5%173.4%150.0%132.6%79.6%59.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

33.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7701 (¥4145) is trading above our estimate of fair value (¥2993.57)

Significantly Below Fair Value: 7701 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7701 is poor value based on its PE Ratio (33.8x) compared to the JP Electronic industry average (16.9x).

PE vs Market: 7701 is poor value based on its PE Ratio (33.8x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 7701 is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: 7701 is overvalued based on its PB Ratio (3.6x) compared to the JP Electronic industry average (1x).


Future Growth

How is Shimadzu forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7701's forecast earnings growth (8.8% per year) is above the savings rate (0%).

Earnings vs Market: 7701's earnings (8.8% per year) are forecast to grow slower than the JP market (12.8% per year).

High Growth Earnings: 7701's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7701's revenue (4.6% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 7701's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7701's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has Shimadzu performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7701 has high quality earnings.

Growing Profit Margin: 7701's current net profit margins (9.2%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: 7701's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: 7701's earnings growth over the past year (13.6%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: 7701 earnings growth over the past year (13.6%) exceeded the Electronic industry 10.1%.


Return on Equity

High ROE: 7701's Return on Equity (10.8%) is considered low.


Financial Health

How is Shimadzu's financial position?


Financial Position Analysis

Short Term Liabilities: 7701's short term assets (¥335.4B) exceed its short term liabilities (¥144.1B).

Long Term Liabilities: 7701's short term assets (¥335.4B) exceed its long term liabilities (¥17.9B).


Debt to Equity History and Analysis

Debt Level: 7701's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: 7701's debt to equity ratio has reduced from 8.7% to 0.5% over the past 5 years.

Debt Coverage: 7701's debt is well covered by operating cash flow (3660.4%).

Interest Coverage: 7701 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Shimadzu current dividend yield, its reliability and sustainability?

0.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 7701's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 7701's dividend (0.84%) is low compared to the top 25% of dividend payers in the JP market (3.01%).


Stability and Growth of Payments

Stable Dividend: 7701's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7701's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), 7701'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?

1.2yrs

Average management tenure


CEO

Teruhisa Ueda (64 yo)

6yrs

Tenure

Mr. Teruhisa Ueda has been the Chief Executive Officer and President of Shimadzu Corporation since June 2015. Mr. Ueda served as Senior Managing Executive Officer, Managing Executive Officer and Manager of...


Leadership Team

Experienced Management: 7701's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: 7701's board of directors are considered experienced (5.5 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

Shimadzu Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shimadzu Corporation
  • Ticker: 7701
  • Exchange: TSE
  • Founded: 1875
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥1.221t
  • Shares outstanding: 294.65m
  • Website: https://www.shimadzu.com

Number of Employees


Location

  • Shimadzu Corporation
  • 1 Nishinokyo Kuwabara-cho
  • Nakagyo-ku
  • Kyoto
  • 604-8511
  • Japan

Listings


Biography

Shimadzu Corporation manufactures and sells analytical and measuring instruments, medical systems, industrial machinery, and aircraft equipment worldwide. Its analytical and measuring instruments include g...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 15:43
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.