OTCPK:SKLK.F

Stock Analysis Report

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Executive Summary

Shinsei Bank, Limited provides various banking and financial products and services to individual customers, businesses, corporations, public-sector entities, and financial institutions in Japan. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.6%

SKLK.F

1.3%

US Banks

1.8%

US Market


1 Year Return

-2.9%

SKLK.F

-25.9%

US Banks

14.2%

US Market

Return vs Industry: SKLK.F exceeded the US Banks industry which returned -27.2% over the past year.

Return vs Market: SKLK.F underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

SKLK.FIndustryMarket
7 Day4.6%1.3%1.8%
30 Day23.9%0.4%0.04%
90 Day6.4%-2.0%9.8%
1 Year-2.9%-2.9%-23.2%-25.9%16.7%14.2%
3 Year823.3%823.3%-14.2%-21.2%41.6%32.2%
5 Year590.2%590.2%25.0%9.6%90.9%69.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKLK.F ($14.08) is trading above our estimate of fair value ($13.72)

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


Price To Earnings Ratio

PE vs Industry: SKLK.F is good value based on its PE Ratio (8.6x) compared to the US Banks industry average (9.8x).

PE vs Market: SKLK.F is good value based on its PE Ratio (8.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SKLK.F is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SKLK.F is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Shinsei Bank forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKLK.F's forecast earnings growth (6.9% per year) is above the savings rate (2.2%).

Earnings vs Market: SKLK.F's earnings (6.9% per year) are forecast to grow slower than the US market (23.3% per year).

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

Revenue vs Market: SKLK.F's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: SKLK.F's revenue is forecast to decline over the next 3 years (-3.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKLK.F's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Shinsei Bank performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKLK.F has high quality earnings.

Growing Profit Margin: SKLK.F's current net profit margins (12%) are lower than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: SKLK.F's earnings have declined by 6% per year over the past 5 years.

Accelerating Growth: SKLK.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: SKLK.F had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Banks industry average (-3.1%).


Return on Equity

High ROE: SKLK.F's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Shinsei Bank'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


Financial Institutions Analysis

Asset Level: SKLK.F's Assets to Equity ratio (11x) is moderate.

Allowance for Bad Loans: SKLK.F has a sufficient allowance for bad loans (106%).

Low Risk Liabilities: 68% of SKLK.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: SKLK.F has an appropriate level of Loans to Assets ratio (50%).

Low Risk Deposits: SKLK.F's Loans to Deposits ratio (81%) is appropriate.

Level of Bad Loans: SKLK.F has a high level of bad loans (2%).


Next Steps

Dividend

What is Shinsei Bank current dividend yield, its reliability and sustainability?

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKLK.F's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: SKLK.F's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (4.71%).


Stability and Growth of Payments

Stable Dividend: SKLK.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SKLK.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SKLK.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SKLK.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Hideyuki Kudo (57 yo)

5.25yrs

Tenure

Mr. Hideyuki Kudo has been President, Chief Executive Officer and Representative Director of Shinsei Bank, Ltd. since June 2015. Mr. Kudo served as Managing Executive Officer of Shinsei Bank, Ltd. since Se ...


Leadership Team

NamePositionTenureCompensationOwnership
Hideyuki Kudo
President5.25yrsno data0.010%
¥ 310.4k
Shoichi Hirano
Managing Executive Officer & Chief Officer of Group Corporate Planning and Finance3.67yrsno datano data
Hiroshi Ishii
Head of IRno datano datano data
Akira Hirasawa
Sr. Managing Exec. Officer2.83yrsno datano data
Michiyuki Okano
Chief Officer of Group ITno datano datano data
Sanjeev Gupta
Senior Managing Executive Officer and Advisor to President & CEOno datano datano data
Yoshiaki Kozano
Chief Officer of Group Business Strategy & Director2.25yrsno datano data
Shinichirou Seto
Senior Managing Executive Officer & Head of Institutional Business Unitno datano datano data
Takahisa Komoda
Managing Executive Officer & Head of Institutional Business2.42yrsno datano data
Tsukasa Makizumi
Managing Executive Officer & Head of Credit Risk Management3.83yrsno datano data
Masanori Matsubara
Managing Executive Officer & Head of IT Systemno datano datano data
Tetsuro Shimizu
Managing Exec. Officerno datano datano data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Management: SKLK.F's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hideyuki Kudo
President5.25yrsno data0.010%
¥ 310.4k
Yoshiaki Kozano
Chief Officer of Group Business Strategy & Director2.25yrsno datano data
Hiroyuki Hatano
GM, Audit & Supervisory Board Member0.25yrno datano data
Jun Makihara
Independent Outside Director9.25yrsno data0.0089%
¥ 269.9k
Ryuichi Tomimura
Independent Outside Director5.25yrsno datano data
Yuko Kawamoto
Independent Outside Director0.25yrno datano data
Shiho Konno
Outside Audit & Supervisory Board Member2.25yrsno datano data
Ernest M. Higa
Independent Outside Director7.25yrsno data0.0018%
¥ 53.9k
Rie Murayama
Independent Outside Director1.25yrsno datano data
Shinya Nagata
Audit & Supervisory Board Member8.25yrsno data0.00089%
¥ 27.1k
Ikuko Akamatsu
Outside Audit & Supervisory Board Member1.25yrsno datano data

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: SKLK.F's board of directors are not considered experienced ( 2.3 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

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


Top Shareholders

Company Information

Shinsei Bank, Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shinsei Bank, Limited
  • Ticker: SKLK.F
  • Exchange: OTCPK
  • Founded: 1952
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: JP¥318.893b
  • Listing Market Cap: JP¥3.043b
  • Shares outstanding: 225.53m
  • Website: https://www.shinseibank.com

Number of Employees


Location

  • Shinsei Bank, Limited
  • Nihonbashi Muromachi Nomura Building
  • 4-3, Nihonbashi-muromachi 2-chome
  • Tokyo
  • 103-8303
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKLK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
8303TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
LCJDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
SKLK.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2004

Biography

Shinsei Bank, Limited provides various banking and financial products and services to individual customers, businesses, corporations, public-sector entities, and financial institutions in Japan. It offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 06:07
End of Day Share Price2020/09/15 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.