OTCPK:TKYM.Y

Stock Analysis Report

Executive Summary

Tokuyama Corporation produces and sells various chemical products in Japan.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.7%

TKYM.Y

-0.9%

US Chemicals

0.07%

US Market


1 Year Return

n/a

TKYM.Y

-3.9%

US Chemicals

8.9%

US Market

Return vs Industry: Insufficient data to determine how TKYM.Y performed against the US Chemicals industry.

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


Shareholder returns

TKYM.YIndustryMarket
7 Day10.7%-0.9%0.07%
30 Day14.3%-2.4%-0.3%
90 Dayn/a-4.0%-1.6%
1 Yearn/a10.3%-3.9%11.3%8.9%
3 Year10.0%10.0%39.6%13.0%46.3%36.8%
5 Yearn/a43.1%11.1%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TKYM.Y ($12.82) is trading below our estimate of fair value ($26.28)

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


Price To Earnings Ratio

PE vs Industry: TKYM.Y is good value based on its PE Ratio (6x) compared to the Chemicals industry average (19.6x).

PE vs Market: TKYM.Y is good value based on its PE Ratio (6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TKYM.Y is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TKYM.Y is good value based on its PB Ratio (1.3x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Tokuyama forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TKYM.Y's forecast earnings growth (5.1% per year) is above the savings rate (2.7%).

Earnings vs Market: TKYM.Y's earnings (5.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TKYM.Y's revenue (2.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TKYM.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: TKYM.Y's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Tokuyama performed over the past 5 years?

47.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TKYM.Y's earnings have grown significantly by 47.7% per year over the past 5 years.

Accelerating Growth: TKYM.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: TKYM.Y had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the Chemicals industry average (-2.9%).


Return on Equity

High ROE: TKYM.Y's Return on Equity (20%) is considered low.


Return on Assets

ROA vs Industry: TKYM.Y has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: TKYM.Y has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tokuyama's financial position?


Financial Position Analysis

Short Term Liabilities: TKYM.Y's short term assets (¥197.3B) exceeds its short term liabilities (¥88.0B)

Long Term Liabilities: TKYM.Y's short term assets (197.3B) exceeds its long term liabilities (121.7B)


Debt to Equity History and Analysis

Debt Level: TKYM.Y's debt to equity ratio (74.6%) is considered high

Reducing Debt: TKYM.Y's debt to equity ratio has reduced from 102% to 74.6% over the past 5 years.

Debt Coverage: TKYM.Y's debt is well covered by operating cash flow (31.2%).

Interest Coverage: TKYM.Y's interest payments on its debt are well covered by EBIT (21.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: TKYM.Y's debt is covered by short term assets (assets are 1.596290x debt).


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TKYM.Y's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TKYM.Y's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.7%), TKYM.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

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

0.3yrs

Average management tenure


CEO

Hiroshi Yokota (58yo)

4.8yrs

Tenure

0

Mr. Hiroshi Yokota has been the President and Executive Officer of Tokuyama Corp. since January 30, 2015 and since April 2015. Mr. Yokota serves as Head of All Business Divisions, Corporate Planning, Audit ...


Management Age and Tenure

0.3yrs

Average Tenure

64yo

Average Age

Experienced Management: TKYM.Y's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TKYM.Y's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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


Management Team

  • Masao Kusunoki (71yo)

    Corporate Advisor

    • Tenure: 0.3yrs
  • Masaki Akutagawa (69yo)

    • Tenure: 0.3yrs
  • Takeshi Nakahara (64yo)

    • Tenure: 0.3yrs
  • Hideki Adachi (64yo)

    Senior Managing Executive Officer

    • Tenure: 4.3yrs
  • Akihiro Hamada (64yo)

    • Tenure: 0.3yrs
  • Ryo Sugiyama

    Managing Executive Officer and GM of Life & Amenity Business Div.

    • Tenure: 0yrs
  • Toshihiko Annaka

    Managing Executive Officer and GM of Procurement & Logistics Division

    • Tenure: 0yrs
  • Hiroshi Yokota (58yo)

    Executive President

    • Tenure: 4.8yrs
  • Hiroshi Nomura

    Managing Executive Officer

    • Tenure: 0.3yrs
  • Taro Kobayashi

    General Manager of Corporate Communications & Investor Relations Department

    • Tenure: 0yrs

Board Members

  • Yuzo Kawamori (72yo)

    External Director

    • Tenure: 0.3yrs
  • Hideki Adachi (64yo)

    Senior Managing Executive Officer

    • Tenure: 4.3yrs
  • Youji Miyamoto (61yo)

    Director

    • Tenure: 2.3yrs
  • Shin Kato (58yo)

    External Director

    • Tenure: 2.3yrs
  • Hiroshi Yokota (58yo)

    Executive President

    • Tenure: 4.8yrs
  • Hiroshi Nomura

    Managing Executive Officer

    • Tenure: 0.3yrs
  • Hideo Sugimura

    Managing Executive Officer

    • Tenure: 2.3yrs
  • Naoki Matsumoto (66yo)

    External Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Tokuyama Corporation
  • Ticker: TKYM.Y
  • Exchange: OTCPK
  • Founded: 1918
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: JP¥195.090b
  • Listing Market Cap: JP¥1.797b
  • Shares outstanding: 69.45m
  • Website: https://www.tokuyama.co.jp

Number of Employees


Location

  • Tokuyama Corporation
  • Front Place Akihabara
  • 7-5, Sotokanda 1-chome
  • Tokyo
  • 101-8618
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4043TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
TBTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
TKYM.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMar 2011

Biography

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates in four segments: Chemicals, Specialty Products, Cement, and Life & Amenity. The Chemicals segment offers so ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:17
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.