OTCPK:ACMU.Y

Stock Analysis Report

Executive Summary

Acom Co., Ltd. engages in the loan and credit card business in Japan and internationally.


Snowflake Analysis

Fair value with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ACMU.Y

0.01%

US Consumer Finance

0.06%

US Market


1 Year Return

n/a

ACMU.Y

14.3%

US Consumer Finance

19.3%

US Market

Return vs Industry: Insufficient data to determine how ACMU.Y performed against the US Consumer Finance industry.

Return vs Market: Insufficient data to determine how ACMU.Y performed against the US Market.


Shareholder returns

ACMU.YIndustryMarket
7 Day0%0.01%0.06%
30 Day-90.3%-0.4%1.7%
90 Dayn/a5.8%9.0%
1 Yearn/a16.2%14.3%21.8%19.3%
3 Year2930.3%2930.3%41.3%34.5%49.5%39.9%
5 Year-85.9%-85.9%47.4%36.9%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

24.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACMU.Y ($1) is trading below our estimate of fair value ($1.33)

Significantly Below Fair Value: ACMU.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACMU.Y is poor value based on its PE Ratio (18.1x) compared to the Consumer Finance industry average (8.3x).

PE vs Market: ACMU.Y is good value based on its PE Ratio (18.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ACMU.Y is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: ACMU.Y is overvalued based on its PB Ratio (1.9x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Acom forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACMU.Y's forecast earnings growth (4.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ACMU.Y's earnings (4.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ACMU.Y's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ACMU.Y's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACMU.Y's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Acom performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACMU.Y has high quality earnings.

Growing Profit Margin: ACMU.Y's current net profit margins (15.4%) are lower than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: ACMU.Y's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: ACMU.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACMU.Y had negative earnings growth (-43.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (21.8%).


Return on Equity

High ROE: ACMU.Y's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acom'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: ACMU.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: ACMU.Y's debt is covered by short term assets (assets are 1.7x debt).


Financial Institutions Analysis

Asset Level: ACMU.Y's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ACMU.Y has a sufficient allowance for bad loans.

Low Risk Liabilities: ACMU.Y reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ACMU.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ACMU.Y has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ACMU.Y has an appropriate level of bad loans.


Next Steps

Dividend

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

0.80%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: ACMU.Y's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ACMU.Y's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.9%), ACMU.Y's dividend payments are thoroughly 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?

8.6yrs

Average management tenure


CEO

Shigeyoshi Kinoshita (70yo)

16.4yrs

Tenure

0

Mr. Shigeyoshi Kinoshita has been the Chairman, and President of Acom Co., Ltd. since June 2010 and June 2000 respectively and serves as Chief Executive Officer of Acom Co., Ltd. In April 1973, Mr. Kinoshi ...


Leadership Team

NamePositionTenureCompensationOwnership
Shigeyoshi Kinoshita
Chairman16.4yrsno data1.79% ¥128.1m
Kaoru Wachi
Deputy Chairman and Executive Officer of Compliance & Internal Audit Departments2.4yrsno data0.00064% ¥45.9k
Teruyuki Sagehashi
Director0yrsno data0.00026% ¥18.6k
Takashi Okamoto
Chief PR & IR Officer0yrsno datano data
Masashi Yoshiba
Executive Officer & Chief GM of Compliance Dept.0yrsno datano data
Masataka Kinoshita
Dy. President0yrsno data0.65% ¥46.7m
Takashi Kiribuchi
Executive Officer & Chief GM of Corporate Planning Dept.8.6yrsno datano data
Makoto Kondo
Executive Managing Officer of Business Process Management Dept & Corporate Risk Management Dept0yrsno datano data
Tomomi Uchida
MD, Exe Mang. Officer0.4yrsno data0.000060% ¥4.3k
Yasuhiro Kamura
Executive Managing Officer & Head of Credit Business Promotion Division8.6yrsno datano data

8.6yrs

Average Tenure

64yo

Average Age

Experienced Management: ACMU.Y's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shigeyoshi Kinoshita
Chairman16.4yrsno data1.79% ¥128.1m
Kaoru Wachi
Deputy Chairman and Executive Officer of Compliance & Internal Audit Departments2.4yrsno data0.00064% ¥45.9k
Teruyuki Sagehashi
Director0yrsno data0.00026% ¥18.6k
Masataka Kinoshita
Dy. President0yrsno data0.65% ¥46.7m
Tomomi Uchida
MD, Exe Mang. Officer0.4yrsno data0.000060% ¥4.3k
Masahide Ishikawa
Full-Time Audit & Supervisory Committee Member and Outside Director0.4yrsno datano data
Kazuo Fukumoto
Full-Time Audit & Supervisory Committee Member and Director2.4yrsno data0.00064% ¥45.9k
Hitoshi Shimbo
Substitute Director0.4yrsno datano data
Tatsuya Ito
Chairman Audit & Supervisory Committee Member and Outside Director0yrsno datano data
Naoki Hori
Director1.4yrsno datano data

1.4yrs

Average Tenure

62yo

Average Age

Experienced Board: ACMU.Y's board of directors are not considered experienced ( 1.4 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

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


Key Information

  • Name: Acom Co., Ltd.
  • Ticker: ACMU.Y
  • Exchange: OTCPK
  • Founded: 1936
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: JP¥778.607b
  • Listing Market Cap: JP¥7.164b
  • Shares outstanding: 1.57b
  • Website: https://www.acom.co.jp

Number of Employees


Location

  • Acom Co., Ltd.
  • Meiji Yasuda Seimei Building
  • 1-1, Marunouchi 2-chome
  • Tokyo
  • 100-8307
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AK5DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1993
8572TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 1993
ACMU.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2005

Biography

Acom Co., Ltd. engages in the loan and credit card business in Japan and internationally. The company operates through four segments: Loan and Credit Card Business, Guarantee Business, Overseas Financial Business, and Loan Servicing Business. It provides unsecured and secured loans; credit cards; guarantees; and loan servicing covering purchased receivables. Acom Co., Ltd. also offers installment sales financing; banking; and contact center contracting and temporary personnel services. The company was founded in 1936 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/31 23:56
End of Day Share Price2019/12/20 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.