OTCPK:PORB.F

Stock Analysis Report

Executive Summary

POLA Orbis Holdings Inc., through its subsidiaries, develops, manufactures, and sells cosmetics and related products in Japan and internationally.

Rewards

Earnings are forecast to grow 12.7% per year

Risk Analysis

Dividend of 3.02% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.8%) are lower than last year (11.3%)



Snowflake Analysis

Flawless balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

PORB.F

-2.8%

US Personal Products

0.6%

US Market


1 Year Return

n/a

PORB.F

45.7%

US Personal Products

24.6%

US Market

Return vs Industry: Insufficient data to determine how PORB.F performed against the US Personal Products industry.

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


Shareholder returns

PORB.FIndustryMarket
7 Day0%-2.8%0.6%
30 Day-4.9%2.1%3.0%
90 Day-0.3%9.1%10.6%
1 Yearn/a47.6%45.7%27.3%24.6%
3 Year-73.6%-73.6%68.2%59.9%50.5%40.8%
5 Year-43.9%-43.9%90.4%70.8%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

298.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PORB.F ($23.83) is trading above our estimate of fair value ($22.11)

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


Price To Earnings Ratio

PE vs Industry: PORB.F is poor value based on its PE Ratio (308.9x) compared to the Personal Products industry average (18.4x).

PE vs Market: PORB.F is poor value based on its PE Ratio (308.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PORB.F is poor value based on its PEG Ratio (24.3x)


Price to Book Ratio

PB vs Industry: PORB.F is overvalued based on its PB Ratio (3.1x) compared to the US Personal Products industry average (2.6x).


Next Steps

Future Growth

How is POLA Orbis Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PORB.F's forecast earnings growth (12.7% per year) is above the savings rate (1.7%).

Earnings vs Market: PORB.F's earnings (12.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: PORB.F's revenue (3.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: PORB.F's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PORB.F's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has POLA Orbis Holdings performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PORB.F has a large one-off loss of ¥23.1B impacting its September 30 2019 financial results.

Growing Profit Margin: PORB.F's current net profit margins (0.8%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: PORB.F's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: PORB.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: PORB.F had negative earnings growth (-93.4%) over the past year, making it difficult to compare to the Personal Products industry average (21.4%).


Return on Equity

High ROE: PORB.F's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is POLA Orbis Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PORB.F's short term assets (¥129.4B) exceed its short term liabilities (¥25.4B).

Long Term Liabilities: PORB.F's short term assets (¥129.4B) exceed its long term liabilities (¥9.7B).


Debt to Equity History and Analysis

Debt Level: PORB.F is debt free.

Reducing Debt: PORB.F has no debt compared to 5 years ago when its debt to equity ratio was 1.8%.

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

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


Balance Sheet

Inventory Level: PORB.F has a high level of physical assets or inventory.

Debt Coverage by Assets: PORB.F's debt is not covered by short term assets (assets are -69.5x debt).


Next Steps

Dividend

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

3.13%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: PORB.F's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PORB.F's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PORB.F has been paying a dividend for less than 10 years.

Growing Dividend: PORB.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (934.8%), PORB.F's dividend payments are not 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 POLA Orbis Holdings's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average board tenure


CEO

Satoshi Suzuki (65yo)

13.3yrs

Tenure

0

Prof. Suzuki Satoshi has been the President of Pola Orbis Holdings Inc since September 2006 and served as its Chief Executive Officer. Prof. Satoshi has been President and Head of Pola Art Foundation, Publ ...


Board Age and Tenure

11.3yrs

Average Tenure

60yo

Average Age

Experienced Board: PORB.F's board of directors are seasoned and experienced ( 11.3 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

  • Naoki Kume (58yo)

    MD of General Planning/IT/HR

    • Tenure: 12yrs
  • Satoshi Suzuki (65yo)

    President & Representative Director

    • Tenure: 13.3yrs
  • Miki Takenaga

    Senior Executive Officer

    • Noriko Fukuyama

      Executive Officer

      • Tenure: 1yrs
    • Ken Horikawa

      Executive Officer of Finance & Legal Affairs


      Board Members

      • Akio Sato (53yo)

        Outside Corporate Auditor

        • Tenure: 11.8yrs
      • Naoki Kume (58yo)

        MD of General Planning/IT/HR

        • Tenure: 12yrs
      • Satoshi Suzuki (65yo)

        President & Representative Director

        • Tenure: 13.3yrs
      • Kazuyoshi Komiya (62yo)

        Outside Director

        • Tenure: 4.8yrs
      • Akira Fujii (62yo)

        Director

        • Tenure: 11.8yrs
      • Motohiko Nakamura (54yo)

        Outside Corporate Auditor

        • Tenure: 11.3yrs
      • Naomi Ushio

        Outside Director

        • Tenure: 1.8yrs
      • Yoshikazu Yokote

        Director

        • Tenure: 3.8yrs
      • Hideki Komoto

        Corporate Auditor

        • Tenure: 0.8yrs

      Company Information

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


      Key Information

      • Name: POLA Orbis Holdings Inc.
      • Ticker: PORB.F
      • Exchange: OTCPK
      • Founded: 1929
      • Industry: Personal Products
      • Sector: Household
      • Market Cap: JP¥565.436b
      • Listing Market Cap: JP¥5.146b
      • Shares outstanding: 221.22m
      • Website: https://www.po-holdings.co.jp

      Number of Employees


      Location

      • POLA Orbis Holdings Inc.
      • Pola Ginza Building
      • 1-7-7 Ginza
      • Tokyo
      • 104-0061
      • Japan

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      4927TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYDec 2010
      8PODB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2010
      PORB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2010

      Biography

      POLA Orbis Holdings Inc., through its subsidiaries, develops, manufactures, and sells cosmetics and related products in Japan and internationally. The company’s Beauty Care segment offers cosmetics; skincare products; health foods; and fashion products, such as women’s underwear, women’s apparel, and jewelry under the POLA, ORBIS, ORLANE, DECENCIA, THREE, H2O PLUS, and Jurlique brand names, as well as provides cosmetics, consulting, and facial esthetic treatment services. Its Real Estate segment is involved in the leasing of office buildings and residential properties. The company’s Others segment develops, manufactures, and sells cosmetics and quasi-pharmaceutical drugs, as well as provides pharmaceutical contract manufacturing services. This segment also provides building maintenance services. The company sells its products through department, directly operated retail, duty-free shops, and specialty cosmetics stores, as well as through door-to-door sales, and mail-order sales. POLA Orbis Holdings Inc. was founded in 1929 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 Analysis2020/01/23 00:54
      End of Day Share Price2020/01/10 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.