OTCPK:NHNK.Y

Stock Analysis Report

Executive Summary

Nihon Kohden Corporation develops, produces, and sells medical electronic equipment in Japan and internationally.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

NHNK.Y

2.4%

US Medical Equipment

0.9%

US Market


1 Year Return

-8.9%

NHNK.Y

23.9%

US Medical Equipment

16.8%

US Market

Return vs Industry: NHNK.Y underperformed the US Medical Equipment industry which returned 23.9% over the past year.

Return vs Market: NHNK.Y underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

NHNK.YIndustryMarket
7 Day-2.0%2.4%0.9%
30 Day-9.7%3.6%4.5%
90 Day-4.0%2.2%6.2%
1 Year-8.9%-8.9%25.0%23.9%19.4%16.8%
3 Year19.3%19.3%90.3%84.5%47.5%38.0%
5 Yearn/a117.4%93.9%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

22.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NHNK.Y ($13.32) is trading above our estimate of fair value ($13.3)

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


Price To Earnings Ratio

PE vs Industry: NHNK.Y is good value based on its PE Ratio (22.4x) compared to the Medical Equipment industry average (46.3x).

PE vs Market: NHNK.Y is poor value based on its PE Ratio (22.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NHNK.Y is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: NHNK.Y is good value based on its PB Ratio (2.1x) compared to the US Medical Equipment industry average (4x).


Next Steps

Future Growth

How is Nihon Kohden forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHNK.Y's forecast earnings growth (9.1% per year) is above the savings rate (2.7%).

Earnings vs Market: NHNK.Y's earnings (9.1% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: NHNK.Y's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NHNK.Y's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NHNK.Y's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Nihon Kohden performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHNK.Y has high quality earnings.

Growing Profit Margin: NHNK.Y's current net profit margins (5.9%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: NHNK.Y's earnings have declined by -2.2% per year over the past 5 years.

Accelerating Growth: NHNK.Y's earnings growth over the past year (6.5%) exceeds its 5-year average (-2.2% per year).

Earnings vs Industry: NHNK.Y earnings growth over the past year (6.5%) underperformed the Medical Equipment industry 28.3%.


Return on Equity

High ROE: NHNK.Y's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nihon Kohden's financial position?


Financial Position Analysis

Short Term Liabilities: NHNK.Y's short term assets (¥119.8B) exceeds its short term liabilities (¥34.6B)

Long Term Liabilities: NHNK.Y's short term assets (¥119.8B) exceeds its long term liabilities (5.1B)


Debt to Equity History and Analysis

Debt Level: NHNK.Y's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: NHNK.Y's debt to equity ratio has reduced from 1.3% to 0.3% over the past 5 years.

Debt Coverage: NHNK.Y's debt is well covered by operating cash flow (705.8%).

Interest Coverage: NHNK.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NHNK.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: NHNK.Y's debt is covered by short term assets (assets are 348.2x debt).


Next Steps

Dividend

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

1.19%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: NHNK.Y's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NHNK.Y's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

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

Growing Dividend: NHNK.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), NHNK.Y'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

What is the CEO of Nihon Kohden's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Hirokazu Ogino (49yo)

2.4yrs

Tenure

0

Mr. Hirokazu Ogino has been the President of Nihon Kohden Corporation since June 25, 2015 and has been its Chief Executive Officer since June 28, 2017. Mr. Ogino served as Chief Operating Officer of Nihon  ...


Management Age and Tenure

2.6yrs

Average Tenure

58yo

Average Age

Experienced Management: NHNK.Y's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

59yo

Average Age

Experienced Board: NHNK.Y's board of directors are considered experienced (4.4 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

  • Takashi Tamura (60yo)

    Executive Operating Officer

    • Tenure: 2.4yrs
  • Fumio Hirose (59yo)

    Senior Operating Officer

    • Tenure: 4.4yrs
  • Eiichi Tanaka (57yo)

    Operating Officer

    • Tenure: 2.4yrs
  • Shigeru Hirata

    Operating Officer & GM of Finance Department

    • Tenure: 3.4yrs
  • Toshihiko Hiraoka

    Operating Officer & Deputy GM of Sales Operations

    • Tenure: 0yrs
  • Yasuhiro Yoshitake (53yo)

    Operating Officer

    • Tenure: 2.4yrs
  • Hirokazu Ogino (49yo)

    President

    • Tenure: 2.4yrs
  • Tadashi Hasegawa (60yo)

    Senior Operating Officer

    • Tenure: 4.4yrs
  • Naoyuki Muraki

    Operating Officer & GM of Operations Management Division

    • Tenure: 1.8yrs
  • Kenji Furukawa

    Operating Officer

    • Tenure: 1.4yrs

Board Members

  • Kazuo Ogino

    Honorary Chairman

    • Tenure: 4.4yrs
  • Takashi Tamura (60yo)

    Executive Operating Officer

    • Tenure: 2.4yrs
  • Fumio Hirose (59yo)

    Senior Operating Officer

    • Tenure: 4.4yrs
  • Kazuhiko Ikuta (63yo)

    Director

    • Tenure: 3.4yrs
  • Eiichi Tanaka (57yo)

    Operating Officer

    • Tenure: 2.4yrs
  • Masasya Yamauchi (59yo)

    Independent Outside Director

    • Tenure: 9.4yrs
  • Yasuhiro Yoshitake (53yo)

    Operating Officer

    • Tenure: 2.4yrs
  • Hirokazu Ogino (49yo)

    President

    • Tenure: 2.4yrs
  • Kazuteru Yanagihara (62yo)

    Senior Operating Officer

    • Tenure: 4.4yrs
  • Tadashi Hasegawa (60yo)

    Senior Operating Officer

    • Tenure: 4.4yrs

Company Information

Nihon Kohden Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nihon Kohden Corporation
  • Ticker: NHNK.Y
  • Exchange: OTCPK
  • Founded: 1951
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: JP¥251.125b
  • Listing Market Cap: JP¥2.314b
  • Shares outstanding: 85.16m
  • Website: https://www.nihonkohden.com

Number of Employees


Location

  • Nihon Kohden Corporation
  • 1-31-4 Nishiochiai
  • Shinjuku-ku
  • Tokyo
  • 161-8560
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6849TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NHNK.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMar 2012

Biography

Nihon Kohden Corporation develops, produces, and sells medical electronic equipment in Japan and internationally. It provides physiological measuring equipment, including electroencephalographs, electrocar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:24
End of Day Share Price2019/11/18 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.