OTCPK:SKLK.Y

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

SKLK.Y

2.9%

US Banks

0.07%

US Market


1 Year Return

1.6%

SKLK.Y

8.6%

US Banks

8.9%

US Market

Return vs Industry: SKLK.Y underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: SKLK.Y underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

SKLK.YIndustryMarket
7 Day2.4%2.9%0.07%
30 Day8.2%3.4%-0.3%
90 Day2.9%2.1%-1.6%
1 Year1.6%1.6%11.8%8.6%11.3%8.9%
3 Year0.3%0.3%54.8%44.1%46.3%36.8%
5 Year-23.2%-23.2%70.2%51.6%62.1%44.3%

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?

7.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKLK.Y ($3.15) is trading above our estimate of fair value ($2.06)

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


Price To Earnings Ratio

PE vs Industry: SKLK.Y is good value based on its PE Ratio (7.3x) compared to the Banks industry average (12.6x).

PE vs Market: SKLK.Y is good value based on its PE Ratio (7.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SKLK.Y is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: SKLK.Y is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Shinsei Bank forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKLK.Y's forecast earnings growth (1.7% per year) is below the savings rate (2.7%).

Earnings vs Market: SKLK.Y's earnings (1.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: SKLK.Y's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: SKLK.Y's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKLK.Y's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Shinsei Bank performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SKLK.Y's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: SKLK.Y's earnings growth over the past year (11.7%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: SKLK.Y earnings growth over the past year (11.7%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: SKLK.Y's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: SKLK.Y's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SKLK.Y's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: SKLK.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: SKLK.Y's debt is covered by short term assets (assets are 1.410960x debt).


Financial Institutions Analysis

Asset Level: SKLK.Y's level of assets compared to its equity is moderate.

Allowance for Bad Loans: SKLK.Y has a sufficient allowance for bad loans.

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

Loan Level: SKLK.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SKLK.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: SKLK.Y has an appropriate level of bad loans (1.55%)


Next Steps

Dividend

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

0.60%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SKLK.Y's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SKLK.Y's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: SKLK.Y 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.Y 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.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Hideyuki Kudo (56yo)

4.3yrs

Tenure

0

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 ...


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: SKLK.Y's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SKLK.Y's board of directors are considered experienced (4.3 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


Management Team

  • Michiyuki Okano

    Chief Officer of Group IT

    • Tenure: 0yrs
  • Sanjeev Gupta (59yo)

    Senior Managing Executive Officer and Advisor to President & CEO

    • Tenure: 0yrs
  • Yoshiaki Kozano (57yo)

    Chief Officer of Group Business Strategy

    • Tenure: 3.5yrs
  • Hideyuki Kudo (56yo)

    President

    • Tenure: 4.3yrs
  • Shinichirou Seto

    Senior Managing Executive Officer & Head of Institutional Business Unit

    • Tenure: 0yrs
  • Akira Hirasawa (56yo)

    Senior Managing Exec. Officer and Chief Officer of Group Organizational Strategy & Group HR

    • Tenure: 1.9yrs
  • Takahisa Komoda (55yo)

    Managing Executive Officer & Head of Institutional Business

    • Tenure: 1.5yrs
  • Shouichi Hirano

    Managing Executive Officer & Chief Officer of Group Corporate Planning and Finance

    • Tenure: 2.8yrs
  • Hiroshi Ishii

    Head of IR

    • Tenure: 0yrs
  • Kyohei Matsumoto

    Chief Officer of Group Legal & Compliance

    • Tenure: 0yrs

Board Members

  • Jun Makihara (61yo)

    Outside Director

    • Tenure: 8.3yrs
  • Ryuichi Tomimura (60yo)

    Outside Director

    • Tenure: 4.3yrs
  • Shiho Konno (56yo)

    Outside Audit & Supervisory Board Member

    • Tenure: 1.3yrs
  • Ernest Higa (67yo)

    Outside Director

    • Tenure: 6.3yrs
  • Rie Murayama (59yo)

    Outside Director

    • Tenure: 0.3yrs
  • Shinya Nagata (61yo)

    Audit & Supervisory Board Member

    • Tenure: 7.3yrs
  • Hideyuki Kudo (56yo)

    President

    • Tenure: 4.3yrs
  • Ikuko Akamatsu (51yo)

    Outside Audit & Supervisory Board Member

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Shinsei Bank, Limited
  • Ticker: SKLK.Y
  • Exchange: OTCPK
  • Founded: 1952
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: JP¥397.563b
  • Listing Market Cap: JP¥3.663b
  • Shares outstanding: 240.07m
  • 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 Analysis2019/10/22 23:51
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.