OTCPK:USSJ.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

USS Co., Ltd., together with its subsidiaries, operates and manages used vehicle auction sites in Japan.

Rewards

Earnings are forecast to grow 4.42% per year

Pays a reliable dividend of 3.62%

Risk Analysis

No risks detected for USSJ.F from our risk checks.


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

USSJ.F

-1.5%

US Specialty Retail

2.3%

US Market


1 Year Return

n/a

USSJ.F

-9.3%

US Specialty Retail

6.7%

US Market

Return vs Industry: Insufficient data to determine how USSJ.F performed against the US Specialty Retail industry.

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


Shareholder returns

USSJ.FIndustryMarket
7 Day0%-1.5%2.3%
30 Dayn/a-0.2%7.4%
90 Dayn/a15.8%17.9%
1 Yearn/a-8.2%-9.3%9.0%6.7%
3 Yearn/a30.4%24.1%36.6%27.7%
5 Yearn/a15.4%5.7%64.2%46.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: USSJ.F ($17.05) is trading above our estimate of fair value ($12.16)

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


Price To Earnings Ratio

PE vs Industry: USSJ.F is poor value based on its PE Ratio (20x) compared to the US Specialty Retail industry average (16.9x).

PE vs Market: USSJ.F is poor value based on its PE Ratio (20x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: USSJ.F is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: USSJ.F is overvalued based on its PB Ratio (2.3x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: USSJ.F's forecast earnings growth (4.4% per year) is above the savings rate (2.2%).

Earnings vs Market: USSJ.F's earnings (4.4% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: USSJ.F's revenue (1.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: USSJ.F's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: USSJ.F's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has USS performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USSJ.F has high quality earnings.

Growing Profit Margin: USSJ.F's current net profit margins (26.4%) are lower than last year (32%).


Past Earnings Growth Analysis

Earnings Trend: USSJ.F's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: USSJ.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: USSJ.F had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (-12.9%).


Return on Equity

High ROE: USSJ.F's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is USS's financial position?


Financial Position Analysis

Short Term Liabilities: USSJ.F's short term assets (¥68.1B) exceed its short term liabilities (¥24.5B).

Long Term Liabilities: USSJ.F's short term assets (¥68.1B) exceed its long term liabilities (¥10.7B).


Debt to Equity History and Analysis

Debt Level: USSJ.F's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: USSJ.F's debt to equity ratio has increased from 0.2% to 1.6% over the past 5 years.

Debt Coverage: USSJ.F's debt is well covered by operating cash flow (926.7%).

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


Balance Sheet


Next Steps

Dividend

What is USS current dividend yield, its reliability and sustainability?

3.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: USSJ.F's dividend (3.62%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: USSJ.F's dividend (3.62%) is low compared to the top 25% of dividend payers in the US market (4.6%).


Stability and Growth of Payments

Stable Dividend: USSJ.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.2%), USSJ.F's dividend payments are 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?

5.6yrs

Average management tenure


CEO

Yukihiro Ando (74yo)

14.08yrs

Tenure

Mr. Yukihiro Ando serves as Chairman and Chief Executive Officer at USS Co., Ltd. since June 2019. He had been the President of USS Co. Ltd. since June 2006 until June 2019. Mr. Ando serves as the Presiden ...


Leadership Team

NamePositionTenureCompensationOwnership
Yukihiro Ando
Chairman & CEO14.08yrsno data3.68% ¥141.5m
Dai Seta
President16.08yrsno data3.76% ¥144.8m
Motohiro Masuda
Executive Vice President14.08yrsno data0.12% ¥4.7m
Masayuki Akase
Senior MD16.08yrsno data0.018% ¥693.7k
Hiromitsu Ikeda
Junior MD8.08yrsno data0.015% ¥586.0k
Toshio Mishima
Senior MD25.33yrsno data0.28% ¥10.9m
Masafumi Yamanaka
VP, Overall GM & Director16.08yrsno data0.012% ¥462.5k
Yasuhisa Koga
Executive Officer & Manager of Fukuoka Auction Site2.5yrsno datano data

5.6yrs

Average Tenure

66yo

Average Age

Experienced Management: USSJ.F's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yukihiro Ando
Chairman & CEO14.08yrsno data3.68% ¥141.5m
Dai Seta
President16.08yrsno data3.76% ¥144.8m
Masayuki Akase
Senior MD16.08yrsno data0.018% ¥693.7k
Toshio Mishima
Senior MD25.33yrsno data0.28% ¥10.9m
Masafumi Yamanaka
VP, Overall GM & Director16.08yrsno data0.012% ¥462.5k
Nobuko Takagi
Independent Outside Director2.5yrsno datano data
Akihiko Kato
Independent Outside Director6.08yrsno data0.00040% ¥15.4k
Ryoichi Miyazaki
Outside Corporate Auditor7.08yrsno datano data
Toru Niwa
Outside Corporate Auditor7.08yrsno datano data
Hitoshi Tamura
Independent Outside Director6.08yrsno data0.00080% ¥30.8k

7.1yrs

Average Tenure

72yo

Average Age

Experienced Board: USSJ.F's board of directors are considered experienced (7.1 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

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


Key Information

  • Name: USS Co., Ltd.
  • Ticker: USSJ.F
  • Exchange: OTCPK
  • Founded: 1980
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: JP¥410.798b
  • Listing Market Cap: JP¥3.847b
  • Shares outstanding: 249.57m
  • Website: https://www.ussnet.co.jp

Number of Employees


Location

  • USS Co., Ltd.
  • 507-20 Shinpo-machi
  • Tokai
  • Aichi
  • 476-0005
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4732TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYSep 1999
USSJ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1999
USVDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1999
USSJ.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

USS Co., Ltd., together with its subsidiaries, operates and manages used vehicle auction sites in Japan. It distributes used vehicles through the operation of on-site auctions at 19 locations, as well as through satellite and Internet auctions. The company also provides motor lorry transport, financial, and used car export services; recycles end-of-life automobiles and other goods; and purchases and sells used and accident-damaged vehicles. In addition, it operates a used car purchasing chain under the Rabbit name. The company was formerly known as Aichi Automobile General Services Co., Ltd. and changed its name to USS Co., Ltd. in March 1995. USS Co., Ltd. was founded in 1980 and is headquartered in Tokai, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 00:40
End of Day Share Price2020/06/25 00:00
Earnings2020/03/31
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.