OTCPK:RSNH.F

Stock Analysis Report

Executive Summary

Resona Holdings, Inc., through its subsidiaries, provides banking products and services in Japan, Asia, the United States, and internationally.

Rewards

Trading at 26.6% below its fair value

Pays a high and reliable dividend of 4.25%

Risk Analysis

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

Profit margins (17%) are lower than last year (35.7%)



Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RSNH.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

RSNH.F

1.3%

US Banks

0.6%

US Market


1 Year Return

n/a

RSNH.F

24.6%

US Banks

20.8%

US Market

Return vs Industry: Insufficient data to determine how RSNH.F performed against the US Banks industry.

Return vs Market: Insufficient data to determine how RSNH.F performed against the US Market.


Shareholder returns

RSNH.FIndustryMarket
7 Day6.4%1.3%0.6%
30 Day2.2%3.3%2.5%
90 Day9.4%8.9%4.9%
1 Yearn/a28.2%24.6%23.5%20.8%
3 Year-16.7%-16.7%26.0%17.2%46.5%37.0%
5 Year-11.9%-11.9%61.8%44.2%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

26.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RSNH.F ($4.48) is trading below our estimate of fair value ($6.1)

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


Price To Earnings Ratio

PE vs Industry: RSNH.F is good value based on its PE Ratio (8.8x) compared to the Banks industry average (12.9x).

PE vs Market: RSNH.F is good value based on its PE Ratio (8.8x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: RSNH.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RSNH.F is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Resona Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RSNH.F's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: RSNH.F's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RSNH.F's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has Resona Holdings performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSNH.F has high quality earnings.

Growing Profit Margin: RSNH.F's current net profit margins (17%) are lower than last year (35.7%).


Past Earnings Growth Analysis

Earnings Trend: RSNH.F's earnings have declined by -1% per year over the past 5 years.

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

Earnings vs Industry: RSNH.F had negative earnings growth (-50.5%) over the past year, making it difficult to compare to the Banks industry average (27.3%).


Return on Equity

High ROE: RSNH.F's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Resona Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RSNH.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: RSNH.F's debt is covered by short term assets (assets are 5.8x debt).


Financial Institutions Analysis

Asset Level: RSNH.F's level of assets compared to its equity is very high.

Allowance for Bad Loans: RSNH.F has a low allowance for bad loans.

Low Risk Liabilities: RSNH.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: RSNH.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RSNH.F's loans are broadly funded by customer deposits.

Level of Bad Loans: RSNH.F has an appropriate level of bad loans (1.42%)


Next Steps

Dividend

What is Resona Holdings's current dividend yield, its reliability and sustainability?

4.25%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: RSNH.F's dividend (4.25%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: RSNH.F's dividend (4.25%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: RSNH.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), RSNH.F'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

What is the CEO of Resona Holdings's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Kazuhiro Higashi (62yo)

6.7yrs

Tenure

0

Mr. Kazuhiro Higashi has been the President at Resona Holdings, Inc. since April 1, 2013, Representative Executive Officer, in charge of Corporate Governance Office since April 2018 and has been its Direct ...


Management Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: RSNH.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

66yo

Average Age

Experienced Board: RSNH.F's board of directors are considered experienced (5 years average tenure).


Insider Trading

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.


Management Team

  • Kazuhiro Higashi (62yo)

    President

    • Tenure: 6.7yrs
  • Ikeda Kazuyoshi (62yo)

    Executive Officer

    • Tenure: 15.9yrs
  • Takayuki Torii (56yo)

    Executive Officer

    • Tenure: 0yrs
  • Kazuyo Shinya

    Executive Officer

    • Tenure: 0yrs
  • Shoichi Iwanaga (54yo)

    Representative Executive Officer & Director

    • Tenure: 1.5yrs
  • Jozi Morikagi

    Chief Manager of International Division

    • Tenure: 0yrs
  • Tomo Yoshizaki (57yo)

    Executive Officer

    • Tenure: 1.7yrs
  • Mikio Noguchi (53yo)

    Executive Officer

    • Tenure: 0yrs
  • Satoshi Fukuoka (54yo)

    Representative Executive Officer & Director

    • Tenure: 1.5yrs
  • Masanori Hirokawa (54yo)

    Executive Officer

    • Tenure: 1.7yrs

Board Members

  • Kazuhiro Higashi (62yo)

    President

    • Tenure: 6.7yrs
  • Kaoru Isono (63yo)

    Director

    • Tenure: 10.5yrs
  • Baba Chiharu (69yo)

    Outside Independent Director

    • Tenure: 2.5yrs
  • Mitsudo Urano (71yo)

    Outside Independent Director

    • Tenure: 6.5yrs
  • Tadamitsu Matsui (70yo)

    Outside Independent Director

    • Tenure: 5.5yrs
  • Hidehiko Sato (74yo)

    Outside Independent Director

    • Tenure: 4.5yrs
  • Shoichi Iwanaga (54yo)

    Representative Executive Officer & Director

    • Tenure: 1.5yrs
  • Masahiro Minami (54yo)

    Executive Officer & Director

    • Tenure: 0.5yrs
  • Satoshi Fukuoka (54yo)

    Representative Executive Officer & Director

    • Tenure: 1.5yrs
  • Yoko Sanuki (70yo)

    Outside Independent Director

    • Tenure: 7.5yrs

Company Information

Resona Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Resona Holdings, Inc.
  • Ticker: RSNH.F
  • Exchange: OTCPK
  • Founded: 1918
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: JP¥1.134t
  • Listing Market Cap: JP¥10.383b
  • Shares outstanding: 2.30b
  • Website: https://www.resona-gr.co.jp

Number of Employees


Location

  • Resona Holdings, Inc.
  • Fukagawa Gatharia W2 Building
  • 1-5-65 Kiba
  • Tokyo
  • 135-8582
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSNH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2001
8308TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2001
DW1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2001

Biography

Resona Holdings, Inc., through its subsidiaries, provides banking products and services in Japan, Asia, the United States, and internationally. The company offers banking and trust banking, credit guarante ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 00:07
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.