OTCPK:BRTH.F

Stock Analysis Report

Executive Summary

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, the Middle East, Africa, rest of Asia, Oceania, and internationally.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

BRTH.F

-6.5%

US Tech

-4.2%

US Market


1 Year Return

1.6%

BRTH.F

63.1%

US Tech

14.0%

US Market

Return vs Industry: BRTH.F underperformed the US Tech industry which returned 71.4% over the past year.

Return vs Market: BRTH.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BRTH.FIndustryMarket
7 Day-3.1%-6.5%-4.2%
30 Day-8.7%-6.6%-1.8%
90 Day-6.6%10.2%2.6%
1 Year1.6%1.6%65.5%63.1%16.3%14.0%
3 Year3.3%3.3%112.2%97.7%43.2%34.0%
5 Yearn/a130.0%107.5%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BRTH.F ($19) is trading below our estimate of fair value ($19.7)

Significantly Below Fair Value: BRTH.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BRTH.F is good value based on its PE Ratio (11.3x) compared to the Tech industry average (21.5x).

PE vs Market: BRTH.F is good value based on its PE Ratio (11.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BRTH.F is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BRTH.F is good value based on its PB Ratio (1.2x) compared to the US Tech industry average (1.8x).


Next Steps

Future Growth

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

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRTH.F's forecast earnings growth (5.3% per year) is above the savings rate (1.7%).

Earnings vs Market: BRTH.F's earnings (5.3% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: BRTH.F's revenue (1.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BRTH.F's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRTH.F's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Brother Industries performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRTH.F has high quality earnings.

Growing Profit Margin: BRTH.F's current net profit margins (7.6%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: BRTH.F's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: BRTH.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: BRTH.F had negative earnings growth (-15.1%) over the past year, making it difficult to compare to the Tech industry average (-3.2%).


Return on Equity

High ROE: BRTH.F's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brother Industries's financial position?


Financial Position Analysis

Short Term Liabilities: BRTH.F's short term assets (¥376.5B) exceed its short term liabilities (¥137.2B).

Long Term Liabilities: BRTH.F's short term assets (¥376.5B) exceed its long term liabilities (¥115.6B).


Debt to Equity History and Analysis

Debt Level: BRTH.F's debt to equity ratio (16%) is considered satisfactory.

Reducing Debt: BRTH.F's debt to equity ratio has increased from 3.6% to 16% over the past 5 years.

Debt Coverage: BRTH.F's debt is well covered by operating cash flow (110%).

Interest Coverage: BRTH.F's interest payments on its debt are well covered by EBIT (114.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: BRTH.F's debt is covered by short term assets (assets are 5.1x debt).


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: BRTH.F's dividend (2.81%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BRTH.F's dividend (2.81%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.8%), BRTH.F'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

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Ichiro Sasaki (62yo)

1.7yrs

Tenure

0

Mr. Ichiro Sasaki has been President & Representative Director at Brother Industries, Ltd. since June 26, 2018. Mr. Ichiro Sasaki served as the Sr. Managing Executive Officer, Head of Domino Bus & Industri ...


Leadership Team

NamePositionTenureCompensationOwnership
Ichiro Sasaki
Representative Director & President1.7yrsno data0.015% ¥752.5k
Mitsuyasu Kyuno
Managing Exec. Officer and Head of Personal & Home Business Division0yrsno datano data
Jun Kamiya
Managing Exec. Officer5.7yrsno data0.0073% ¥366.5k
Tasuku Kawanabe
Senior Managing Exec. Officer0yrsno data0.0062% ¥308.8k
Tadashi Ishiguro
Senior Managing Exec. Officer5.7yrsno data0.0077% ¥386.0k
Yuichi Tada
Managing Exec. Officer0yrsno data0.0035% ¥173.5k
Hiroyuki Wakahara
Managing Executive Officer0yrsno datano data
Satoru Kuwabara
Managing Executive Officer1.1yrsno datano data
Taizo Murakami
Managing Executive Officer1.1yrsno datano data
Tsuyoshi Suzuki
Managing Executive Officer1.1yrsno datano data

1.1yrs

Average Tenure

Experienced Management: BRTH.F's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ichiro Sasaki
Representative Director & President1.7yrsno data0.015% ¥752.5k
Jun Kamiya
Managing Exec. Officer5.7yrsno data0.0073% ¥366.5k
Tasuku Kawanabe
Senior Managing Exec. Officer0yrsno data0.0062% ¥308.8k
Tadashi Ishiguro
Senior Managing Exec. Officer5.7yrsno data0.0077% ¥386.0k
Yuichi Tada
Managing Exec. Officer0yrsno data0.0035% ¥173.5k
Soichi Matsuno
Outside Director5.7yrsno data0.0027% ¥134.9k
Toshikazu Koike
Chairman1.7yrsno data0.010% ¥520.9k
Koichi Fukaya
Outside Director7.7yrsno data0.0039% ¥193.0k
Atsushi Nishijo
Outside Director9.7yrsno data0.0062% ¥308.8k
Kazunari Uchida
Member of Independent Advisory Committee5.7yrsno datano data

5.7yrs

Average Tenure

66yo

Average Age

Experienced Board: BRTH.F's board of directors are considered experienced (5.7 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

Brother Industries, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brother Industries, Ltd.
  • Ticker: BRTH.F
  • Exchange: OTCPK
  • Founded: 1908
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: JP¥554.367b
  • Listing Market Cap: JP¥5.013b
  • Shares outstanding: 259.78m
  • Website: https://global.brother

Number of Employees


Location

  • Brother Industries, Ltd.
  • 15-1, Naeshiro-cho
  • Mizuho-ku
  • Nagoya
  • Aichi
  • 467-8561
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRTH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6448TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
BI5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
BRTH.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 1992

Biography

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, the Middle East, Africa, rest of Asia, Oceania, and internationally. It operates through Printing & Solutions Business, Personal & Home Business, Machinery Business, Network & Contents Business, and Domino Business segments. The Printing & Solutions Business segment offers laser and inkjet printers; all-in-one black-and-white laser and color printers; fax machines and scanners; and electronic stationary comprising labeling systems, and label and mobile printers. The Personal & Home Business segment provides home sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Machinery Business segment offers industrial sewing machines, machine tools, and garment printers, as well as industrial parts, such as reducers and gears. The Network & Contents Business segment provides online karaoke systems, music boxes, applications for smartphones/tablets, health care supporting equipment, and content services, as well as manages Karaoke clubs. The Domino Business segment offers cording and marking equipment, digital printing equipment, etc. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:20
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.