OTCPK:ASWA.Y

Stock Analysis Report

Executive Summary

Arisawa Mfg. Co., Ltd. manufactures and sells electronic, optoelectronic, electrical insulating, and industrial structural materials in Japan and internationally.

Rewards

Trading at 44.8% below its fair value

Earnings are forecast to grow 61.13% per year

Risk Analysis

Dividend of 3.02% is not well covered by earnings

Profit margins (0.4%) are lower than last year (8.3%)



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.7%

ASWA.Y

1.8%

US Electronic

0.8%

US Market


1 Year Return

n/a

ASWA.Y

23.7%

US Electronic

17.8%

US Market

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

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


Shareholder returns

ASWA.YIndustryMarket
7 Day2.7%1.8%0.8%
30 Dayn/a0.9%1.8%
90 Dayn/a6.2%4.1%
1 Yearn/a25.0%23.7%20.4%17.8%
3 Year59.2%59.2%47.0%42.9%45.9%36.4%
5 Year34.1%34.1%83.2%74.2%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASWA.Y ($4.52) is trading below our estimate of fair value ($8.19)

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


Price To Earnings Ratio

PE vs Industry: ASWA.Y is poor value based on its PE Ratio (184.3x) compared to the Electronic industry average (20.9x).

PE vs Market: ASWA.Y is poor value based on its PE Ratio (184.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ASWA.Y is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: ASWA.Y is good value based on its PB Ratio (0.7x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is Arisawa Mfg forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

61.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASWA.Y's forecast earnings growth (61.1% per year) is above the savings rate (1.7%).

Earnings vs Market: ASWA.Y's earnings (61.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASWA.Y's revenue (2.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ASWA.Y's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ASWA.Y's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Arisawa Mfg performed over the past 5 years?

-15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASWA.Y has high quality earnings.

Growing Profit Margin: ASWA.Y's current net profit margins (0.4%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: ASWA.Y's earnings have declined by -15.8% per year over the past 5 years.

Accelerating Growth: ASWA.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: ASWA.Y had negative earnings growth (-94.7%) over the past year, making it difficult to compare to the Electronic industry average (53.7%).


Return on Equity

High ROE: ASWA.Y's Return on Equity (0.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arisawa Mfg's financial position?


Financial Position Analysis

Short Term Liabilities: ASWA.Y's short term assets (¥36.7B) exceed its short term liabilities (¥19.9B).

Long Term Liabilities: ASWA.Y's short term assets (¥36.7B) exceed its long term liabilities (¥5.2B).


Debt to Equity History and Analysis

Debt Level: ASWA.Y's debt to equity ratio (21.8%) is considered satisfactory.

Reducing Debt: ASWA.Y's debt to equity ratio has increased from 9% to 21.8% over the past 5 years.

Debt Coverage: ASWA.Y's debt is well covered by operating cash flow (37.6%).

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


Balance Sheet

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

Debt Coverage by Assets: ASWA.Y's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

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

3.02%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: ASWA.Y's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ASWA.Y's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (555.6%), ASWA.Y'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 Arisawa Mfg's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Yuta Arisawa (50yo)

2.5yrs

Tenure

0

Mr. Yuta Arisawa has been the Chief Executive Officer of Arisawa Mfg. Co., Ltd. since June 28, 2017. Mr. Arisawa served as Chief Operating Officer of Arisawa Mfg. Co., Ltd. since June 2014 until June 28, 2 ...


Management Age and Tenure

2.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ASWA.Y's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ASWA.Y's board of directors are considered experienced (5.5 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

  • Yuta Arisawa (50yo)

    CEO & Representative Director

    • Tenure: 2.5yrs
  • Yoshihiko Toda (61yo)

    Senior Managing Operating Officer

    • Tenure: 5.5yrs
  • Takeshi Masuda

    Operating Officer & Deputy Division Chief of Administration Division

    • Tenure: 3.4yrs
  • Makoto Tai

    Operating Officer & Deputy Division Chief of Electronic Materials Business Division

    • Tenure: 4.4yrs
  • Osamu Nakajima (54yo)

    Chief of Electronic Materials Business Division

    • Tenure: 3.5yrs
  • Takeshi Aizawa

    Operating Officer & Deputy Division Chief of Manufacturing Division

    • Tenure: 0yrs
  • Hidetaka Nonami (61yo)

    Senior Operating Officer and Executive GM of Manufacturing Division & Administration Division

    • Tenure: 2.5yrs
  • Shuichi Fujita

    Operating Officer & Deputy Executive GM of Electronic Materials Business Division

    • Tenure: 0.9yrs

Board Members

  • Yutaka Tsukahara (74yo)

    Director

    • Tenure: 2.5yrs
  • Koji Ohta (64yo)

    Full Time Corporate Auditor

    • Tenure: 7.5yrs
  • Yuta Arisawa (50yo)

    CEO & Representative Director

    • Tenure: 2.5yrs
  • Katsuchika Goto (75yo)

    Outside Director

    • Tenure: 9.5yrs
  • Yoshihiko Toda (61yo)

    Senior Managing Operating Officer

    • Tenure: 5.5yrs
  • Nobuya Tanaka (63yo)

    Outside Corporate Auditor

    • Tenure: 5.5yrs
  • Osamu Nakajima (54yo)

    Chief of Electronic Materials Business Division

    • Tenure: 3.5yrs
  • Hiroshi Miyashita (62yo)

    Outside Corporate Auditor

    • Tenure: 3.5yrs

Company Information

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


Key Information

  • Name: Arisawa Mfg. Co., Ltd.
  • Ticker: ASWA.Y
  • Exchange: OTCPK
  • Founded: 1909
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥34.188b
  • Listing Market Cap: JP¥314.691m
  • Shares outstanding: 34.36m
  • Website: https://www.arisawa.co.jp

Number of Employees


Location

  • Arisawa Mfg. Co., Ltd.
  • Minami-honcho 1-5-5
  • Joetsu
  • Niigata
  • 943-8610
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5208TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
ASWA.YOTCPK (Pink Sheets LLC)GDRUSUSDMar 2001

Biography

Arisawa Mfg. Co., Ltd. manufactures and sells electronic, optoelectronic, electrical insulating, and industrial structural materials in Japan and internationally. The company offers flexible printed circui ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:32
End of Day Share Price2019/12/10 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.