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4423

ARTERIA Networks TSE:4423 Stock Report

Last Price

JP¥1.24k

Market Cap

JP¥61.7b

7D

-1.9%

1Y

-25.8%

Updated

28 Sep, 2022

Data

Company Financials +

ARTERIA Networks Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ARTERIA Networks
Historical stock prices
Current Share PriceJP¥1,244.00
52 Week HighJP¥1,761.00
52 Week LowJP¥1,159.00
Beta0.13
1 Month Change-4.09%
3 Month Change1.80%
1 Year Change-25.78%
3 Year Change-12.95%
5 Year Changen/a
Change since IPO3.67%

Recent News & Updates

Shareholder Returns

4423JP TelecomJP Market
7D-1.9%-0.006%-2.3%
1Y-25.8%21.3%-8.8%

Return vs Industry: 4423 underperformed the JP Telecom industry which returned 21.3% over the past year.

Return vs Market: 4423 underperformed the JP Market which returned -8.8% over the past year.

Price Volatility

Is 4423's price volatile compared to industry and market?
4423 volatility
4423 Average Weekly Movement2.5%
Telecom Industry Average Movement5.0%
Market Average Movement3.5%
10% most volatile stocks in JP Market7.4%
10% least volatile stocks in JP Market1.8%

Stable Share Price: 4423 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 4423's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997787Koji Kabumotohttps://www.arteria-net.com

ARTERIA Networks Corporation provides telecommunication network services in Japan. The company offers leased circuit (Ethernet) access services; virtual private network services through dedicated closed network; cloud services, including consulting, installation, and operation; Internet access; IP telephone/landline services; security/network monitoring solutions; data center services, including housing and co-location services; and mobile device management and monitoring solutions. It also provides Internet access services for condominiums; and equipment engineering services, including information and communications equipment installation.

ARTERIA Networks Fundamentals Summary

How do ARTERIA Networks's earnings and revenue compare to its market cap?
4423 fundamental statistics
Market CapJP¥61.66b
Earnings (TTM)JP¥5.73b
Revenue (TTM)JP¥56.29b

10.8x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
4423 income statement (TTM)
RevenueJP¥56.29b
Cost of RevenueJP¥39.14b
Gross ProfitJP¥17.15b
Other ExpensesJP¥11.43b
EarningsJP¥5.73b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 14, 2022

Earnings per share (EPS)114.76
Gross Margin30.47%
Net Profit Margin10.17%
Debt/Equity Ratio143.5%

How did 4423 perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

53%

Payout Ratio

Does 4423 pay a reliable dividends?

See 4423 dividend history and benchmarks
When do you need to buy 4423 by to receive an upcoming dividend?
ARTERIA Networks dividend dates
Ex Dividend DateSep 29 2022
Dividend Pay DateDec 12 2022
Days until Ex dividend1 day
Days until Dividend pay date75 days

Does 4423 pay a reliable dividends?

See 4423 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 4423 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 4423?

Other financial metrics that can be useful for relative valuation.

4423 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/Revenue1.9x
Enterprise Value/EBITDA6.8x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does 4423's PE Ratio compare to its peers?

4423 PE Ratio vs Peers
The above table shows the PE ratio for 4423 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.5x
9418 USEN-NEXT HOLDINGSLtd
14.1x12.7%JP¥118.0b
3681 V-cube
24.5x19.4%JP¥23.6b
9450 Fibergate
16.7x14.8%JP¥18.7b
3843 FreeBit
29.7x30.7%JP¥16.9b
4423 ARTERIA Networks
10.8x6.3%JP¥61.7b

Price-To-Earnings vs Peers: 4423 is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (21.5x).


Price to Earnings Ratio vs Industry

How does 4423's PE Ratio compare vs other companies in the Asian Telecom Industry?

Price-To-Earnings vs Industry: 4423 is good value based on its Price-To-Earnings Ratio (10.8x) compared to the Asian Telecom industry average (17.4x)


Price to Earnings Ratio vs Fair Ratio

What is 4423'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.

4423 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: 4423 is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).


Share Price vs Fair Value

What is the Fair Price of 4423 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4423 (¥1244) is trading below our estimate of fair value (¥4251.13)

Significantly Below Fair Value: 4423 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 more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is ARTERIA Networks forecast to perform in the next 1 to 3 years based on estimates from 3 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


6.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4423's forecast earnings growth (6.3% per year) is above the savings rate (0.04%).

Earnings vs Market: 4423's earnings (6.3% per year) are forecast to grow slower than the JP market (8.5% per year).

High Growth Earnings: 4423's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4423's revenue (3.8% per year) is forecast to grow slower than the JP market (4.2% per year).

High Growth Revenue: 4423's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4423's Return on Equity is forecast to be low in 3 years time (19.7%).


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Past Performance

How has ARTERIA Networks 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


7.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 4423 has a large one-off gain of ¥1.9B impacting its June 30 2022 financial results.

Growing Profit Margin: 4423's current net profit margins (10.2%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: 4423's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: 4423's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4423 had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Telecom industry average (2.4%).


Return on Equity

High ROE: Whilst 4423's Return on Equity (22.37%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is ARTERIA Networks's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 4423's short term assets (¥15.6B) do not cover its short term liabilities (¥53.6B).

Long Term Liabilities: 4423's short term assets (¥15.6B) do not cover its long term liabilities (¥17.9B).


Debt to Equity History and Analysis

Debt Level: 4423's net debt to equity ratio (126.1%) is considered high.

Reducing Debt: 4423's debt to equity ratio has reduced from 417.2% to 143.5% over the past 5 years.

Debt Coverage: 4423's debt is well covered by operating cash flow (33.7%).

Interest Coverage: 4423's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet


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Dividend

What is ARTERIA Networks's 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


4.86%

Current Dividend Yield

Dividend Yield vs Market

ARTERIA Networks Dividend Yield vs Market
How does ARTERIA Networks dividend yield compare to the market?
SegmentDividend Yield
Company (ARTERIA Networks)4.9%
Market Bottom 25% (JP)1.7%
Market Top 25% (JP)3.7%
Industry Average (Telecom)3.0%
Analyst forecast in 3 Years (ARTERIA Networks)5.5%

Notable Dividend: 4423's dividend (4.86%) is higher than the bottom 25% of dividend payers in the JP market (1.66%).

High Dividend: 4423's dividend (4.86%) is in the top 25% of dividend payers in the JP market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4423 has been paying a dividend for less than 10 years.

Growing Dividend: 4423's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.7%), 4423's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (104.5%), 4423's dividend payments are not well covered by cash flows.


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Management

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

2.7yrs

Average management tenure


CEO

Koji Kabumoto

no data

Tenure

Mr. Koji Kabumoto serves as President and Chief Executive Officer at ARTERIA Networks Corporation since April 17, 2019 and is its Representative Director. He served as Executive Officer and Chief Operating...


Leadership Team

Experienced Management: 4423's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: 4423's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

What is the ownership structure of 4423?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders44,5180.09%
Hedge Funds4,500,0009.0%
General Public10,050,14820.1%
Institutions10,292,46820.6%
Public Companies25,000,10050.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 79.15% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
50.11%
Marubeni Corporation
25,000,100¥31.1b0%no data
9.02%
Janchor Partners Ltd.
4,500,000¥5.6b0%47.12%
3.38%
Sumitomo Mitsui Trust Asset Management Co., Ltd.
1,686,000¥2.1b0%0.01%
3.07%
Nikko Asset Management Co., Ltd.
1,530,800¥1.9b0%0.01%
1.75%
The Vanguard Group, Inc.
874,200¥1.1b0%no data
1.27%
Kuwait Investment Authority
631,200¥785.2m0%0.02%
1.25%
Nomura Asset Management Co., Ltd.
622,300¥774.1m-0.4%no data
1.18%
J.P. Morgan Asset Management, Inc.
588,400¥732.0m-0.24%no data
0.96%
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Securities & Investments Arm
481,000¥598.4m0%0.11%
0.93%
Morgan Stanley, Investment Banking and Brokerage Investments
464,000¥577.2m0%no data
0.69%
Tokio Marine Asset Management Co., Ltd.
345,000¥429.2m0%0.02%
0.63%
Natixis, Investment Banking and Corporate Banking Investments
312,400¥388.6m0%0.01%
0.61%
Daiwa Asset Management Co. Ltd.
302,300¥376.1m0.13%no data
0.53%
Norges Bank Investment Management
264,923¥329.6m0%no data
0.5%
Mackenzie Investments Europe Limited
247,400¥307.8m0%0.08%
0.48%
Dimensional Fund Advisors LP
237,541¥295.5m0.1%no data
0.46%
BlackRock, Inc.
228,400¥284.1m0.84%no data
0.43%
Mackenzie Investments Asia Limited
213,100¥265.1m0%0.87%
0.35%
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
173,400¥215.7m0.52%no data
0.34%
Mercer Investments LLC
169,802¥211.2m0%0.02%
0.31%
Mackenzie Financial Corporation
154,851¥192.6m0%no data
0.3%
Architas Multi-Manager Europe Limited
151,400¥188.3m0%0.09%
0.3%
WisdomTree Asset Management, Inc.
150,800¥187.6m6.95%0.01%
0.17%
Norinchukin-Zenkyoren Asset Management Co., Ltd.
87,300¥108.6m0%0.01%
0.14%
Sumitomo Mitsui DS Asset Management Company, Limited
71,000¥88.3m-0.14%no data

Company Information

ARTERIA Networks Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: ARTERIA Networks Corporation
  • Ticker: 4423
  • Exchange: TSE
  • Founded: 1997
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Implied Market Cap: JP¥61.661b
  • Shares outstanding: 49.89m
  • Website: https://www.arteria-net.com

Number of Employees


Location

  • ARTERIA Networks Corporation
  • Sumitomo Fudosan Shimbashi Building
  • 6-9-8 Shimbashi
  • Tokyo
  • 105-0004
  • Japan


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4423TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2018
0YWDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2018

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.