OTCPK:BSEF.Y

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Benesse Holdings, Inc. engages in the education, language, lifestyles, senior and nursing care, and other related businesses.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

BSEF.Y

4.6%

US Consumer Services

2.5%

US Market


1 Year Return

13.6%

BSEF.Y

45.8%

US Consumer Services

16.3%

US Market

Return vs Industry: BSEF.Y underperformed the US Consumer Services industry which returned 54.8% over the past year.

Return vs Market: BSEF.Y underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

BSEF.YIndustryMarket
7 Day0%4.6%2.5%
30 Day8.9%8.9%5.6%
90 Dayn/a35.6%16.4%
1 Year14.3%13.6%46.3%45.8%18.8%16.3%
3 Year-28.4%-28.9%86.7%79.2%45.1%35.7%
5 Year4.2%3.6%236.9%212.2%75.8%56.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

42.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BSEF.Y ($27.9) is trading above our estimate of fair value ($18.96)

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


Price To Earnings Ratio

PE vs Industry: BSEF.Y is poor value based on its PE Ratio (42.2x) compared to the US Consumer Services industry average (32.9x).

PE vs Market: BSEF.Y is poor value based on its PE Ratio (42.2x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: BSEF.Y is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BSEF.Y is good value based on its PB Ratio (1.6x) compared to the US Consumer Services industry average (2.6x).


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSEF.Y's forecast earnings growth (19% per year) is above the savings rate (2.2%).

Earnings vs Market: BSEF.Y's earnings (19% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: BSEF.Y's revenue (2.9% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BSEF.Y's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSEF.Y's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Benesse Holdings performed over the past 5 years?

48.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSEF.Y has high quality earnings.

Growing Profit Margin: BSEF.Y's current net profit margins (1.4%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: BSEF.Y has become profitable over the past 5 years, growing earnings by 48.3% per year.

Accelerating Growth: BSEF.Y's earnings growth over the past year (27.8%) is below its 5-year average (48.3% per year).

Earnings vs Industry: BSEF.Y earnings growth over the past year (27.8%) exceeded the Consumer Services industry 22.3%.


Return on Equity

High ROE: BSEF.Y's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Benesse Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BSEF.Y's short term assets (¥273.4B) exceed its short term liabilities (¥177.5B).

Long Term Liabilities: BSEF.Y's short term assets (¥273.4B) exceed its long term liabilities (¥164.6B).


Debt to Equity History and Analysis

Debt Level: BSEF.Y's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: BSEF.Y's debt to equity ratio has increased from 14.7% to 19.4% over the past 5 years.

Debt Coverage: BSEF.Y's debt is well covered by operating cash flow (123.1%).

Interest Coverage: BSEF.Y's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BSEF.Y's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: BSEF.Y's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

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

Growing Dividend: BSEF.Y's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.6%), BSEF.Y's payments are 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?

3.2yrs

Average board tenure


CEO

Tamotsu Adachi (67 yo)

3.83yrs

Tenure

Mr. Tamotsu Adachi has been the Chief Executive Officer and President at Benesse Holdings, Inc. since October 2016. Mr. Adachi serves as the Senior Advisor to the Japan buyout advisory team at The Carlyle ...


Board Members

NamePositionTenureCompensationOwnership
Tamotsu Adachi
President3.83yrsno data0.082%
¥ 2.1m
Hitoshi Kobayashi
Executive VP8.17yrsno data0.012%
¥ 312.2k
Kimiko Kunimasa
Chief Human Officerno datano datano data
Haruna Okada
Director1.17yrsno data0.029%
¥ 728.8k
Shinya Takiyama
Corporate Executive VP4.17yrsno data0.0042%
¥ 104.1k
Masaki Yamasaki
Corporate Executive VP3.17yrsno data0.0042%
¥ 104.1k
Naoto Saito
Standing Audit & Supervisory Board Member1.17yrsno data0.0021%
¥ 52.2k
Katsumi Ihara
Independent Director1.17yrsno datano data
Ryuji Yasuda
Outside Independent Director5.17yrsno data0.0021%
¥ 52.2k
Mutsuo Iwai
Independent Outside Director0.17yrno datano data
Daisuke Iwase
Independent Outside Director0.17yrno datano data
Hideaki Fukutake
Independent Outside Director6.17yrsno datano data

3.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BSEF.Y's board of directors are considered experienced (3.2 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

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


Key Information

  • Name: Benesse Holdings, Inc.
  • Ticker: BSEF.Y
  • Exchange: OTCPK
  • Founded: 1955
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: JP¥265.441b
  • Listing Market Cap: JP¥2.508b
  • Shares outstanding: 96.38m
  • Website: https://www.benesse-hd.co.jp/ja

Number of Employees


Location

  • Benesse Holdings, Inc.
  • 3-7-17 Minamigata
  • Kita-ku
  • Okayama
  • Okayama
  • 700-0807
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BE8DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1995
9783TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYNov 1995
BSEF.YOTCPK (Pink Sheets LLC)UNS ADR REP 1 SHUSUSDOct 2008

Biography

Benesse Holdings, Inc. engages in the education, language, lifestyles, senior and nursing care, and other related businesses. The company offers Shinkenzemi correspondence courses, Shinken simulated exams, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 01:16
End of Day Share Price2020/07/27 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.