OTCPK:SDGC.F

Stock Analysis Report

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Executive Summary

Sundrug Co.,Ltd. operates and manages drug stores and dispensing pharmacies in Japan.

Rewards

PE ratio (18x) is below the US market (18.8x)

Earnings are forecast to grow 4.8% per year

Pays a reliable dividend of 1.86%

Risk Analysis

No risks detected for SDGC.F from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.4%

SDGC.F

2.2%

US Consumer Retailing

2.5%

US Market


1 Year Return

24.3%

SDGC.F

15.1%

US Consumer Retailing

16.3%

US Market

Return vs Industry: SDGC.F exceeded the US Consumer Retailing industry which returned 14.6% over the past year.

Return vs Market: SDGC.F exceeded the US Market which returned 15.8% over the past year.


Shareholder returns

SDGC.FIndustryMarket
7 Day4.4%2.2%2.5%
30 Day8.0%5.4%5.6%
90 Dayn/a7.2%16.4%
1 Year24.3%24.3%16.9%15.1%18.8%16.3%
3 Yearn/a53.8%45.3%45.1%35.7%
5 Year-43.7%-43.7%63.3%47.0%75.8%56.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SDGC.F ($33.95) is trading above our estimate of fair value ($25.2)

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


Price To Earnings Ratio

PE vs Industry: SDGC.F is good value based on its PE Ratio (18x) compared to the US Consumer Retailing industry average (22.4x).

PE vs Market: SDGC.F is good value based on its PE Ratio (18x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: SDGC.F is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: SDGC.F is overvalued based on its PB Ratio (2.3x) compared to the US Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is SundrugLtd forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDGC.F's forecast earnings growth (4.8% per year) is above the savings rate (2.2%).

Earnings vs Market: SDGC.F's earnings (4.8% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: SDGC.F's revenue (3.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SDGC.F'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: SDGC.F's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has SundrugLtd performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDGC.F has high quality earnings.

Growing Profit Margin: SDGC.F's current net profit margins (3.8%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: SDGC.F's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: SDGC.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: SDGC.F had negative earnings growth (-1%) over the past year, making it difficult to compare to the Consumer Retailing industry average (20.1%).


Return on Equity

High ROE: SDGC.F's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is SundrugLtd's financial position?


Financial Position Analysis

Short Term Liabilities: SDGC.F's short term assets (¥181.2B) exceed its short term liabilities (¥90.4B).

Long Term Liabilities: SDGC.F's short term assets (¥181.2B) exceed its long term liabilities (¥7.0B).


Debt to Equity History and Analysis

Debt Level: SDGC.F is debt free.

Reducing Debt: SDGC.F had no debt 5 years ago.

Debt Coverage: SDGC.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SDGC.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is SundrugLtd current dividend yield, its reliability and sustainability?

1.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SDGC.F's dividend (1.86%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: SDGC.F's dividend (1.86%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.6%), SDGC.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

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

7.0yrs

Average management tenure


CEO

Akao Kimiya (55 yo)

7yrs

Tenure

Mr. Akao Kimiya has been the President of Sundrug Co., Ltd since August 2013 and serves as its General Manager of Business Administration. Mr. Kimiya served as the General Manager of Administrative Divisi ...


Leadership Team

NamePositionTenureCompensationOwnership
Akao Kimiya
President7yrsno datano data
Tsuruta Kazuhiro
Chief of Office of President20.17yrsno datano data
Sakai Yoshimitsu
Manager of Store Development Department & Director10.17yrsno datano data

7.0yrs

Average Tenure

55yo

Average Age

Experienced Management: SDGC.F's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Akao Kimiya
President7yrsno datano data
Tsuruta Kazuhiro
Chief of Office of President20.17yrsno datano data
Sakai Yoshimitsu
Manager of Store Development Department & Director10.17yrsno datano data
Kenji Fujiwara
External Director5.17yrsno datano data
Tada Naoki
Director19.17yrsno data2.66%
¥ 107.3m
Saitsu Tatsuro
Chairman of the Board7yrsJP¥118.00m0.17%
¥ 6.9m
Sadakata Hiroshi
Director12.17yrsno data0.012%
¥ 482.9k
Ozawa Tetsuro
External Auditor8.17yrsno datano data
Shinohara Kazuma
External Auditor8.17yrsno datano data
Nobuhiko Sugiura
External Director6.17yrsno datano data
Masao Okamoto
External Standing Corporate Auditor5.17yrsno datano data
Takashi Tada
Directorno datano data1.88%
¥ 75.9m

8.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: SDGC.F's board of directors are considered experienced (8.2 years average tenure).


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

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


Key Information

  • Name: Sundrug Co.,Ltd.
  • Ticker: SDGC.F
  • Exchange: OTCPK
  • Founded: 1957
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: JP¥426.685b
  • Listing Market Cap: JP¥4.031b
  • Shares outstanding: 116.90m
  • Website: https://www.sundrug.co.jp

Number of Employees


Location

  • Sundrug Co.,Ltd.
  • 1 in 38, Wakamatsucho
  • Fuchu
  • Tokyo
  • 183-0005
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9989TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYAug 1994
SDGC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1994

Biography

Sundrug Co.,Ltd. operates and manages drug stores and dispensing pharmacies in Japan. It also operates discount stores that offers food, cosmetics, home appliances, clothing, car supplies, sports and leisu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 23:52
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
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.