OTCPK:AKEJ.F

Stock Analysis Report

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Executive Summary

ARIAKE JAPAN Co., Ltd. manufactures, processes, and sells natural seasoning products from chicken, pork, and beef.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

AKEJ.F

-0.2%

US Food

-0.04%

US Market


1 Year Return

n/a

AKEJ.F

5.8%

US Food

17.1%

US Market

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

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


Shareholder returns

AKEJ.FIndustryMarket
7 Day0%-0.2%-0.04%
30 Day0%6.6%5.1%
90 Day5.1%9.5%19.5%
1 Yearn/a8.5%5.8%19.6%17.1%
3 Yearn/a3.8%-4.8%42.5%33.3%
5 Yearn/a15.7%0.4%75.1%56.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

27.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AKEJ.F ($62) is trading above our estimate of fair value ($45.59)

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


Price To Earnings Ratio

PE vs Industry: AKEJ.F is poor value based on its PE Ratio (27.4x) compared to the US Food industry average (26.1x).

PE vs Market: AKEJ.F is poor value based on its PE Ratio (27.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: AKEJ.F is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: AKEJ.F is overvalued based on its PB Ratio (2.4x) compared to the US Food industry average (2x).


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKEJ.F's forecast earnings growth (7.4% per year) is above the savings rate (2.2%).

Earnings vs Market: AKEJ.F's earnings (7.4% per year) are forecast to grow slower than the US market (24% per year).

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

Revenue vs Market: AKEJ.F's revenue (5.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AKEJ.F's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKEJ.F's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has ARIAKE JAPAN performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKEJ.F has high quality earnings.

Growing Profit Margin: AKEJ.F's current net profit margins (15.7%) are lower than last year (29.5%).


Past Earnings Growth Analysis

Earnings Trend: AKEJ.F's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: AKEJ.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: AKEJ.F had negative earnings growth (-51.9%) over the past year, making it difficult to compare to the Food industry average (-5.4%).


Return on Equity

High ROE: AKEJ.F's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is ARIAKE JAPAN's financial position?


Financial Position Analysis

Short Term Liabilities: AKEJ.F's short term assets (¥70.4B) exceed its short term liabilities (¥7.4B).

Long Term Liabilities: AKEJ.F's short term assets (¥70.4B) exceed its long term liabilities (¥3.8B).


Debt to Equity History and Analysis

Debt Level: AKEJ.F is debt free.

Reducing Debt: AKEJ.F has no debt compared to 5 years ago when its debt to equity ratio was 1.5%.

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

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


Balance Sheet


Next Steps

Dividend

What is ARIAKE JAPAN current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AKEJ.F's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: AKEJ.F's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (4.29%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.7%), AKEJ.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?

6.2yrs

Average board tenure


CEO

Tomoki Tagawa (66 yo)

no data

Tenure

Mr. Tomoki Tagawa has been President and Director of Ariake Japan Co., Ltd. since June 2007 and serves as its Chief Executive Officer and served as its Chief Operating Officer. Mr. Tagawa has been the Pres ...


Board Members

NamePositionTenureCompensationOwnership
Tomoki Tagawa
CEO, President & Directorno datano data0.10%
¥ 2.1m
Katsutoshi Iwaki
Executive VP6.17yrsno data0.25%
¥ 5.2m
Kouichi Matsumoto
Head of Accounting6.17yrsno data0.063%
¥ 1.3m
Yoshikazu Uchida
MD, GM of Sales Department & Director13.17yrsno data0.0031%
¥ 64.5k
Kenichi Isaka
External Director5.17yrsno datano data
Naoyoshi Takeshita
External Director6.17yrsno datano data
Takeyoshi Ohno
External Director5.17yrsno datano data

6.2yrs

Average Tenure

72yo

Average Age

Experienced Board: AKEJ.F's board of directors are considered experienced (6.2 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

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


Key Information

  • Name: ARIAKE JAPAN Co., Ltd.
  • Ticker: AKEJ.F
  • Exchange: OTCPK
  • Founded: 1966
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: JP¥218.609b
  • Listing Market Cap: JP¥2.053b
  • Shares outstanding: 31.82m
  • Website: https://www.ariakejapan.com

Number of Employees


Location

  • ARIAKE JAPAN Co., Ltd.
  • 3-2-17 Ebisu-Minami
  • Shibuya-ku
  • Tokyo
  • 150-0022
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2815TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJul 1992
AKEJ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 1992
5EFDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1992

Biography

ARIAKE JAPAN Co., Ltd. manufactures, processes, and sells natural seasoning products from chicken, pork, and beef. The company also engages in the production, processing, export/import, and sale of agricul ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:06
End of Day Share Price2020/07/10 00:00
Earnings2020/06/30
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.