Nissha (TSE:7915) - Share price, News & Analysis

Q: What is the Fair Price of 7915 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7915 (¥1812) is trading below our estimate of [[fair value]] (¥2426.07)

7915 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

7915 Stock Overview

Nissha Co., Ltd. engages in industrial materials, devices, medical technologies, and information and communication in Japan and internationally.

Rewards

Trading at 25.3% below our estimate of its fair value

Risk Analysis

Earnings are forecast to decline by an average of 1.4% per year for the next 3 years

Unstable dividend track record

Nissha Competitors

Hosiden

TSE:6804

JP¥82.4b

Canon Electronics

TSE:7739

JP¥70.1b

Kohoku KogyoLTD

TSE:6524

JP¥65.8b

Nichicon

TSE:6996

JP¥96.5b

Price History & Performance

Summary of all time highs, changes and price drops for Nissha
Historical stock prices
Current Share Price	JP¥1,812.00
52 Week High	JP¥1,953.00
52 Week Low	JP¥1,159.00
Beta	1.34
1 Month Change	24.37%
3 Month Change	20.48%
1 Year Change	1.29%
3 Year Change	89.94%
5 Year Change	-38.97%
Change since IPO	18.64%

Shareholder Returns

	7915	JP Electronic	JP Market
7D	14.0%	1.0%	1.2%
1Y	1.3%	-5.5%	-0.2%

Return vs Industry: 7915 exceeded the JP Electronic industry which returned -5.5% over the past year.

Return vs Market: 7915 exceeded the JP Market which returned -0.2% over the past year.

Price Volatility

Is 7915's price volatile compared to industry and market?
7915 volatility
7915 Average Weekly Movement	4.4%
Electronic Industry Average Movement	4.1%
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: 7915 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7915's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1929	5,409	Junya Suzuki	https://www.nissha.com

Nissha Co., Ltd. engages in industrial materials, devices, medical technologies, and information and communication in Japan and internationally. The company provides in-mold decoration technology, in-mold electronics, transfer foil, printed electronics, molding, CMF design sample book; metallized paper for packaging and labels, wrapping, direct food contact, and innerliners; and material consulting; provide sensing technologies for various markets, such as smartphones and automotive. It also offers force and gas sensors; and finished products.

Nissha Fundamentals Summary

How do Nissha's earnings and revenue compare to its market cap?
7915 fundamental statistics
Market Cap	JP¥90.29b
Earnings (TTM)	JP¥13.18b
Revenue (TTM)	JP¥179.92b

6.9x

P/E Ratio

0.5x

P/S Ratio

Is 7915 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7915 income statement (TTM)
Revenue	JP¥179.92b
Cost of Revenue	JP¥138.43b
Gross Profit	JP¥41.49b
Other Expenses	JP¥28.32b
Earnings	JP¥13.18b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	264.40
Gross Margin	23.06%
Net Profit Margin	7.32%
Debt/Equity Ratio	38.8%

How did 7915 perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

11%

Payout Ratio

Does 7915 pay a reliable dividends?

See 7915 dividend history and benchmarks

When do you need to buy 7915 by to receive an upcoming dividend?
Nissha dividend dates
Ex Dividend Date	Dec 29 2022
Dividend Pay Date	Mar 03 2023
Days until Ex dividend	137 days
Days until Dividend pay date	201 days

Does 7915 pay a reliable dividends?

See 7915 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 7915 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 7915?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 7915. This is calculated by dividing 7915's market cap by their current preferred multiple.
What is 7915's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥90.29b

7915 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	0.6x
Enterprise Value/EBITDA	4.7x
PEG Ratio	-4.8x

Price to Earnings Ratio vs Peers

How does 7915's PE Ratio compare to its peers?

7915 PE Ratio vs Peers

The above table shows the PE ratio for 7915 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.1x
6804 Hosiden	4.8x	-38.5%	JP¥82.4b
7739 Canon Electronics	12.3x	n/a	JP¥70.1b
6524 Kohoku KogyoLTD	22.2x	9.5%	JP¥65.8b
6996 Nichicon	9.2x	-0.2%	JP¥96.5b
7915 Nissha	6.9x	-1.4%	JP¥90.3b

Price-To-Earnings vs Peers: 7915 is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (12.1x).

Price to Earnings Ratio vs Industry

How does 7915's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 7915 is good value based on its Price-To-Earnings Ratio (6.9x) compared to the JP Electronic industry average (11.9x)

Price to Earnings Ratio vs Fair Ratio

What is 7915'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.

7915 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.9x
Fair PE Ratio	10.8x

Price-To-Earnings vs Fair Ratio: 7915 is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.8x).

Share Price vs Fair Value

What is the Fair Price of 7915 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7915 (¥1812) is trading below our estimate of fair value (¥2426.07)

Significantly Below Fair Value: 7915 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.

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Future Growth

How is Nissha forecast to perform in the next 1 to 3 years based on estimates from 8 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

-1.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7915's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: 7915's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: 7915's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 7915's revenue (2.5% per year) is forecast to grow slower than the JP market (4.3% per year).

High Growth Revenue: 7915's revenue (2.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 7915's Return on Equity is forecast to be low in 3 years time (8.4%).

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Past Performance

How has Nissha performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

37.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7915 has high quality earnings.

Growing Profit Margin: 7915's current net profit margins (7.3%) are lower than last year (8.9%).

Past Earnings Growth Analysis

Earnings Trend: 7915 has become profitable over the past 5 years, growing earnings by 37.4% per year.

Accelerating Growth: 7915's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7915 had negative earnings growth (-26.4%) over the past year, making it difficult to compare to the Electronic industry average (32.9%).

Return on Equity

High ROE: 7915's Return on Equity (11.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Nissha'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: 7915's short term assets (¥115.9B) exceed its short term liabilities (¥56.3B).

Long Term Liabilities: 7915's short term assets (¥115.9B) exceed its long term liabilities (¥60.5B).

Debt to Equity History and Analysis

Debt Level: 7915 has more cash than its total debt.

Reducing Debt: 7915's debt to equity ratio has reduced from 58.3% to 38.8% over the past 5 years.

Debt Coverage: 7915's debt is well covered by operating cash flow (30.1%).

Interest Coverage: 7915 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Nissha 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

1.65%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 7915's dividend (1.66%) is higher than the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 7915's dividend (1.66%) is low compared to the top 25% of dividend payers in the JP market (3.59%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 7915 has been paying a dividend for less than 10 years.

Growing Dividend: 7915's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.3%), 7915's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.3%), 7915's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure

CEO

Junya Suzuki (58 yo)

15.58yrs

Tenure

JP¥117,000,000

Compensation

Mr. Junya Suzuki, M.A. serves as the President and Chairman of Nissha USA, Inc. Mr. Suzuki serves as the Chairman, Chief Executive Officer of Nissha Printing Co. Ltd. and has been its President since 2007....

CEO Compensation Analysis

Compensation vs Market: Junya's total compensation ($USD875.73K) is below average for companies of similar size in the JP market ($USD1.36M).

Compensation vs Earnings: Insufficient data to compare Junya's compensation with company performance.

Leadership Team

Experienced Management: 7915's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: 7915's board of directors are considered experienced (3.4 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	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31