OTCPK:SKEN.F

Stock Analysis Report

Executive Summary

Sasakura Engineering Co., Ltd. researches, develops, and sells marine equipment, desalination plants, air-cooled heat exchangers, and other environmental protection devices worldwide.

Risk Analysis

Dividend of 1.66% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.4%) are lower than last year (5.2%)

Does not have a meaningful market cap ($7B)



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Sasakura Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SKEN.F

-3.1%

US Machinery

-1.2%

US Market


1 Year Return

n/a

SKEN.F

17.4%

US Machinery

22.3%

US Market

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

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


Shareholder returns

SKEN.FIndustryMarket
7 Day0%-3.1%-1.2%
30 Day0%-2.4%1.6%
90 Dayn/a3.4%8.8%
1 Yearn/a19.6%17.4%25.0%22.3%
3 Yearn/a37.3%28.5%49.9%40.3%
5 Yearn/a76.8%55.5%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sasakura Engineering undervalued compared to its fair value and its price relative to the market?

77.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKEN.F ($20.2) is trading above our estimate of fair value ($3.22)

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


Price To Earnings Ratio

PE vs Industry: SKEN.F is poor value based on its PE Ratio (74.8x) compared to the Machinery industry average (23.4x).

PE vs Market: SKEN.F is poor value based on its PE Ratio (74.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SKEN.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SKEN.F is good value based on its PB Ratio (0.4x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Sasakura Engineering forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.8%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sasakura Engineering has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sasakura Engineering performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKEN.F has a large one-off gain of ¥263.0M impacting its September 30 2019 financial results.

Growing Profit Margin: SKEN.F's current net profit margins (0.4%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: SKEN.F's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: SKEN.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: SKEN.F had negative earnings growth (-82.4%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).


Return on Equity

High ROE: SKEN.F's Return on Equity (0.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sasakura Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: SKEN.F's short term assets (¥24.0B) exceed its short term liabilities (¥3.9B).

Long Term Liabilities: SKEN.F's short term assets (¥24.0B) exceed its long term liabilities (¥4.3B).


Debt to Equity History and Analysis

Debt Level: SKEN.F's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: SKEN.F's debt to equity ratio has increased from 0% to 16.3% over the past 5 years.

Debt Coverage: SKEN.F's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SKEN.F's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

Inventory Level: SKEN.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SKEN.F's debt is covered by short term assets (assets are 7.1x debt).


Next Steps

Dividend

What is Sasakura Engineering's current dividend yield, its reliability and sustainability?

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SKEN.F's dividend (1.66%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SKEN.F's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: SKEN.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: SKEN.F's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (170.3%), SKEN.F's dividend payments are not 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 Sasakura Engineering's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Toshihiko Sasakura (65yo)

22.6yrs

Tenure

0

Mr. Toshihiko Sasakura has been the President at Sasakura Engineering Co. Ltd. since June 1997. Mr. Sasakura has been President at Sasako Kabushiki Kaisha since January 1998. He Joined at Sasakura Engineer ...


Management Age and Tenure

2.4yrs

Average Tenure

62yo

Average Age

Experienced Management: SKEN.F's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

62yo

Average Age

Experienced Board: SKEN.F's board of directors are considered experienced (6.6 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

  • Toshihiko Sasakura (65yo)

    President and Representative Director

    • Tenure: 22.6yrs
  • Yutaka Shiomi (62yo)

    Managing Director and Director

    • Tenure: 6.6yrs
  • Shintaro Sasakura (41yo)

    Executive VP & Director

    • Tenure: 6.6yrs
  • Makoto Watanabe

    Executive Officer & Director

    • Tenure: 2.6yrs
  • Kappei Nakamura

    Executive Officer & Director

    • Tenure: 2.3yrs
  • Tomohiro Nakano

    Executive Officer

    • Tenure: 1yrs
  • Yoshiaki Tokuda

    Executive Officer

    • Tenure: 1yrs
  • Shinsaku Komoto

    Executive Officer

    • Tenure: 1yrs

Board Members

  • Toshihiko Sasakura (65yo)

    President and Representative Director

    • Tenure: 22.6yrs
  • Yasutoshi Yoshii (66yo)

    Director

    • Tenure: 10.6yrs
  • Masafumi Kawamura (56yo)

    External Auditor

    • Tenure: 11.6yrs
  • Kazutami Yamada (64yo)

    External Auditor

    • Tenure: 8.6yrs
  • Yutaka Shiomi (62yo)

    Managing Director and Director

    • Tenure: 6.6yrs
  • Shintaro Sasakura (41yo)

    Executive VP & Director

    • Tenure: 6.6yrs
  • Takeshi Fujisawa (61yo)

    External Director

    • Tenure: 4.6yrs
  • Makoto Watanabe

    Executive Officer & Director

    • Tenure: 2.6yrs
  • Kappei Nakamura

    Executive Officer & Director

    • Tenure: 2.3yrs
  • Takanori Miyake

    Director

    • Tenure: 1yrs

Company Information

Sasakura Engineering Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sasakura Engineering Co., Ltd.
  • Ticker: SKEN.F
  • Exchange: OTCPK
  • Founded: 1949
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥7.636b
  • Listing Market Cap: JP¥69.799m
  • Shares outstanding: 3.07m
  • Website: https://www.sasakura.co.jp

Number of Employees


Location

  • Sasakura Engineering Co., Ltd.
  • 7-32 Takejima 4-chome
  • Nishiyodogawa-ku
  • Osaka
  • 555-0011
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6303TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYDec 1994
SKEN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1994

Biography

Sasakura Engineering Co., Ltd. researches, develops, and sells marine equipment, desalination plants, air-cooled heat exchangers, and other environmental protection devices worldwide. The company provides reheat seawater and reverse osmosis desalination plants; plate type fresh water and fresh water generators for tankers, cargo ships, and other general ships; low pressure submerged tube-type, two-stage and multi-stage flash-type, and double/triple-effect low pressure submerged tube-type distilling plants for LNG carriers, passenger ships, etc.; and vacuum vapor compression distillers for fishing boats, tugboats, working ships, offshore facilities, etc., as well as offers rehabilitation services to desalination plants. It also offers evaporating concentrator systems for wastewater treatment; and oily water separators and sewage treatment plants to prevent pollution from ships and other ship environmental devices. In addition, the company provides air cooled and fin tube type heat exchangers, thermal recovery units, and rotary thermosiphon chill rolls; shell and tube heat exchangers for LNG carriers; and deaerators to prevent corrosion in boilers; and cryogenic butterfly valves for LNG terminals/carriers, as well as for cryogenic applications, such as fuel and liquefied hydrogen of rocket engines. Further, it offers acoustic and noise control products, such as splitter silencers, elbow silencers/fan units, sound proof louvers, sound absorbing and insulation panels, silencer for air cooled chillers, and anechoic room with recycled PET wedges. Sasakura Engineering Co., Ltd. was founded in 1949 and is headquartered in Osaka, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 00:37
End of Day Share Price2019/10/30 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.