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Murata Manufacturing

OTCPK:MRAA.Y
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRAA.Y
OTCPK
¥3,526B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Murata Manufacturing Co., Ltd. designs, manufactures, and sells electronic components in Japan and internationally. The last earnings update was 40 days ago. More info.


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MRAA.Y Share Price and Events
7 Day Returns
0.4%
OTCPK:MRAA.Y
-2.7%
US Electronic
-1.1%
US Market
1 Year Returns
10.2%
OTCPK:MRAA.Y
3.5%
US Electronic
6.4%
US Market
MRAA.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Murata Manufacturing (MRAA.Y) 0.4% -7.9% 13.5% 10.2% 18% 55.7%
US Electronic -2.7% -2.6% 23.1% 3.5% 56.7% 56.4%
US Market -1.1% 0.3% 17.2% 6.4% 37.9% 42.1%
1 Year Return vs Industry and Market
  • MRAA.Y outperformed the Electronic industry which returned 3.5% over the past year.
  • MRAA.Y outperformed the Market in United States of America which returned 6.4% over the past year.
Price Volatility
MRAA.Y
Industry
5yr Volatility vs Market
Related Companies

MRAA.Y Value

 Is Murata Manufacturing undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Murata Manufacturing to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Murata Manufacturing.

OTCPK:MRAA.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:MRAA.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.065 (1 + (1- 30.86%) (4.08%))
1.064
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.064 * 5.96%)
9.07%

Discounted Cash Flow Calculation for OTCPK:MRAA.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Murata Manufacturing is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:MRAA.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 9.07%)
2019 -62,175.50 Analyst x6 -57,004.76
2020 95,098.89 Analyst x9 79,939.07
2021 157,885.43 Analyst x7 121,679.53
2022 214,073.30 Est @ 35.59% 151,261.99
2023 269,155.28 Est @ 25.73% 174,366.09
2024 319,838.02 Est @ 18.83% 189,968.26
2025 364,616.02 Est @ 14% 198,553.94
2026 403,335.12 Est @ 10.62% 201,372.72
2027 436,619.96 Est @ 8.25% 199,861.90
2028 465,418.02 Est @ 6.6% 195,326.63
Present value of next 10 years cash flows ¥1,455,325.38
OTCPK:MRAA.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ¥465,418.02 × (1 + 2.73%) ÷ (9.07% – 2.73%)
¥7,540,532.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥7,540,532.23 ÷ (1 + 9.07%)10
¥3,164,610.41
OTCPK:MRAA.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥1,455,325.38 + ¥3,164,610.41
¥4,619,935.79
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥4,619,935.79 / 213.26
¥21663.71
OTCPK:MRAA.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:MRAA.Y represents 0.00222x of TSE:6981
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00222x
Value per Share
(Listing Adjusted, USD)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 21,663.71 x 0.00222
$48.10
Value per share (USD) From above. $48.10
Current discount Discount to share price of $36.72
= -1 x ($36.72 - $48.10) / $48.10
23.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Murata Manufacturing is available for.
Intrinsic value
24%
Share price is $36.72 vs Future cash flow value of $48.1
Current Discount Checks
For Murata Manufacturing to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Murata Manufacturing's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Murata Manufacturing's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Murata Manufacturing's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Murata Manufacturing's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:MRAA.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in JPY ¥909.73
TSE:6981 Share Price ** TSE (2019-03-22) in JPY ¥16535
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.06x
United States of America Market PE Ratio Median Figure of 3,062 Publicly-Listed Companies 17.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Murata Manufacturing.

OTCPK:MRAA.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:6981 Share Price ÷ EPS (both in JPY)

= 16535 ÷ 909.73

18.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Murata Manufacturing is good value based on earnings compared to the US Electronic industry average.
  • Murata Manufacturing is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Murata Manufacturing's expected growth come at a high price?
Raw Data
OTCPK:MRAA.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
15.6%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

OTCPK:MRAA.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.18x ÷ 15.6%

1.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Murata Manufacturing is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Murata Manufacturing's assets?
Raw Data
OTCPK:MRAA.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in JPY ¥7,348.77
TSE:6981 Share Price * TSE (2019-03-22) in JPY ¥16535
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.01x
United States of America Market PB Ratio Median Figure of 5,165 Publicly-Listed Companies 1.85x
OTCPK:MRAA.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:6981 Share Price ÷ Book Value per Share (both in JPY)

= 16535 ÷ 7,348.77

2.25x

* Primary Listing of Murata Manufacturing.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Murata Manufacturing is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess Murata Manufacturing's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Murata Manufacturing has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MRAA.Y Future Performance

 How is Murata Manufacturing expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Murata Manufacturing expected to grow at an attractive rate?
  • Murata Manufacturing's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Murata Manufacturing's earnings growth is expected to exceed the United States of America market average.
  • Murata Manufacturing's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:MRAA.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:MRAA.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 15.6%
OTCPK:MRAA.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 7%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:MRAA.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:MRAA.Y Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 1,813,468 417,436 281,313 13
2020-03-31 1,703,920 373,267 252,257 17
2019-03-31 1,580,877 300,407 209,382 17
OTCPK:MRAA.Y Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2018-12-31 1,554,705 269,405 194,000
2018-09-30 1,540,614 213,004 163,313
2018-06-30 1,442,386 221,476 151,930
2018-03-31 1,371,842 225,249 146,083
2017-12-31 1,302,735 220,635 149,563
2017-09-30 1,193,226 255,257 162,430
2017-06-30 1,149,563 278,996 151,521
2017-03-31 1,135,524 243,920 156,060
2016-12-31 1,127,288 295,363 154,631
2016-09-30 1,162,952 260,651 173,111
2016-06-30 1,190,938 253,801 194,891
2016-03-31 1,210,841 252,451 203,776

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Murata Manufacturing's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).
  • Murata Manufacturing's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:MRAA.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Murata Manufacturing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MRAA.Y Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 1,309.92 1,679.10 1,138.90 15.00
2020-03-31 1,176.74 1,470.00 1,049.50 18.00
2019-03-31 976.49 1,011.90 926.44 18.00
OTCPK:MRAA.Y Past Financials Data
Date (Data in JPY Millions) EPS *
2018-12-31 909.73
2018-09-30 765.83
2018-06-30 712.88
2018-03-31 685.86
2017-12-31 702.62
2017-09-30 763.52
2017-06-30 712.24
2017-03-31 733.87
2016-12-31 728.03
2016-09-30 816.03
2016-06-30 919.83
2016-03-31 962.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Murata Manufacturing is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Murata Manufacturing's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Murata Manufacturing has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MRAA.Y Past Performance

  How has Murata Manufacturing performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Murata Manufacturing's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Murata Manufacturing's year on year earnings growth rate has been positive over the past 5 years.
  • Murata Manufacturing's 1-year earnings growth exceeds its 5-year average (29.7% vs 6%)
  • Murata Manufacturing's earnings growth has not exceeded the US Electronic industry average in the past year (29.7% vs 64.8%).
Earnings and Revenue History
Murata Manufacturing's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Murata Manufacturing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MRAA.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,554,705.00 194,000.00 213,608.00 101,115.00
2018-09-30 1,540,614.00 163,313.00 209,848.00 99,878.00
2018-06-30 1,442,386.00 151,930.00 197,426.00 98,506.00
2018-03-31 1,371,842.00 146,083.00 187,950.00 94,181.00
2017-12-31 1,302,735.00 149,563.00 176,222.00 89,639.00
2017-09-30 1,193,226.00 162,430.00 163,613.00 86,012.00
2017-06-30 1,149,563.00 151,521.00 154,238.00 83,454.00
2017-03-31 1,135,524.00 156,060.00 149,371.00 81,809.00
2016-12-31 1,127,288.00 154,631.00 145,286.00 81,161.00
2016-09-30 1,162,952.00 173,111.00 143,780.00 80,385.00
2016-06-30 1,190,938.00 194,891.00 144,161.00 79,910.00
2016-03-31 1,210,841.00 203,776.00 145,399.00 77,982.00
2015-12-31 1,215,315.00 212,637.00 144,161.00 76,815.00
2015-09-30 1,176,766.00 214,562.00 143,237.00 73,409.00
2015-06-30 1,106,382.00 187,343.00 141,008.00 70,058.00
2015-03-31 1,043,542.00 167,711.00 134,811.00 64,990.00
2014-12-31 975,468.00 149,745.00 129,940.00 59,930.00
2014-09-30 909,170.00 114,057.00 122,960.00 57,696.00
2014-06-30 872,123.00 102,638.00 114,880.00 54,503.00
2014-03-31 846,716.00 93,191.00 111,898.00 54,649.00
2013-12-31 823,110.00 85,633.00 104,125.00 53,739.00
2013-09-30 780,469.00 74,906.00 101,106.00 52,142.00
2013-06-30 731,022.00 56,309.00 99,466.00 50,467.00
2013-03-31 681,021.00 42,386.00 93,399.00 48,766.00
2012-12-31 646,957.00 30,785.00 90,885.00 46,138.00
2012-09-30 603,439.00 22,267.00 87,199.00 44,098.00
2012-06-30 584,010.00 20,125.00 85,427.00 42,613.00
2012-03-31 584,662.00 30,807.00 84,312.00 40,978.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Murata Manufacturing has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Murata Manufacturing used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • Murata Manufacturing's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Murata Manufacturing's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Murata Manufacturing has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MRAA.Y Health

 How is Murata Manufacturing's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Murata Manufacturing's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Murata Manufacturing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Murata Manufacturing's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Murata Manufacturing's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Murata Manufacturing Company Filings, last reported 2 months ago.

OTCPK:MRAA.Y Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,567,713.00 143,851.00 252,927.00
2018-09-30 1,554,192.00 152,671.00 287,213.00
2018-06-30 1,474,005.00 109,762.00 268,927.00
2018-03-31 1,457,216.00 14,242.00 220,439.00
2017-12-31 1,457,611.00 80,369.00 268,305.00
2017-09-30 1,436,037.00 47,005.00 341,598.00
2017-06-30 1,370,725.00 685.00 315,774.00
2017-03-31 1,355,334.00 46,663.00 397,373.00
2016-12-31 1,332,064.00 42,751.00 355,120.00
2016-09-30 1,260,524.00 607.00 328,747.00
2016-06-30 1,217,776.00 2,925.00 326,970.00
2016-03-31 1,243,979.00 9,747.00 370,043.00
2015-12-31 1,261,091.00 9,478.00 289,423.00
2015-09-30 1,226,275.00 10,813.00 317,404.00
2015-06-30 1,173,955.00 16,537.00 306,195.00
2015-03-31 1,138,931.00 20,806.00 358,297.00
2014-12-31 1,106,260.00 35,812.00 290,237.00
2014-09-30 1,036,593.00 35,946.00 311,902.00
2014-06-30 979,537.00 33,648.00 275,534.00
2014-03-31 971,632.00 54,197.00 282,401.00
2013-12-31 948,886.00 84,002.00 268,022.00
2013-09-30 915,933.00 50,104.00 244,010.00
2013-06-30 880,201.00 41,672.00 204,408.00
2013-03-31 860,963.00 55,606.00 184,717.00
2012-12-31 829,904.00 83,293.00 155,405.00
2012-09-30 804,730.00 47,353.00 124,869.00
2012-06-30 796,087.00 47,846.00 129,551.00
2012-03-31 808,542.00 37,196.00 144,066.00
  • Murata Manufacturing's level of debt (9.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (8.8% vs 9.2% today).
  • Debt is well covered by operating cash flow (187.3%, greater than 20% of total debt).
  • Murata Manufacturing earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Murata Manufacturing's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Murata Manufacturing has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MRAA.Y Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.69%
Current annual income from Murata Manufacturing dividends. Estimated to be 1.96% next year.
If you bought $2,000 of Murata Manufacturing shares you are expected to receive $34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Murata Manufacturing's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Murata Manufacturing's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:MRAA.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:MRAA.Y Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 360.07 15.00
2020-03-31 335.56 18.00
2019-03-31 284.44 18.00
OTCPK:MRAA.Y Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2019-02-13 280.000 1.618
2019-01-31 280.000 1.646
2018-11-12 280.000 1.819
2018-10-31 280.000 1.511
2018-08-09 280.000 1.607
2018-07-31 280.000 1.482
2018-06-28 280.000 1.451
2018-04-27 280.000 1.719
2018-02-13 260.000 1.780
2018-01-30 260.000 1.669
2017-11-10 260.000 1.674
2017-10-31 260.000 1.571
2017-08-10 260.000 1.543
2017-07-31 260.000 1.489
2017-06-29 260.000 1.522
2017-04-28 260.000 1.621
2017-02-13 220.000 1.411
2017-01-31 220.000 1.426
2016-11-11 220.000 1.445
2016-10-31 220.000 1.638
2016-07-28 220.000 1.657
2016-02-09 200.000 1.551
2016-01-29 200.000 1.405
2015-06-26 200.000 1.153
2015-04-30 200.000 1.021
2015-02-12 160.000 1.008
2015-01-30 200.000 1.556
2014-09-17 160.000 1.277
2014-06-27 160.000 1.598
2014-04-30 160.000 1.807
2014-02-03 140.000 1.505
2014-01-31 140.000 1.458
2013-10-31 120.000 1.345
2013-09-30 120.000 1.588
2013-06-27 120.000 1.662
2013-04-30 120.000 1.529
2013-02-13 100.000 1.475
2013-01-31 100.000 1.710
2012-10-31 100.000 2.134
2012-07-31 100.000 2.484
2012-06-01 100.000 2.428
2012-02-13 100.000 2.172
2012-01-31 100.000 2.225
2011-11-11 100.000 2.418
2011-10-31 100.000 2.338
2011-07-29 100.000 2.210
2011-06-03 100.000 1.906
2011-02-14 100.000 1.779
2011-01-31 100.000 1.666
2010-10-29 100.000 1.858
2010-07-29 100.000 2.351
2010-07-07 70.000 1.586
2010-06-29 100.000 2.361
2010-05-06 100.000 2.192
2010-02-12 70.000 1.383
2009-11-13 70.000 1.543
2009-10-30 70.000 1.657
2009-07-29 70.000 1.608
2009-05-01 70.000 1.735
2009-03-26 100.000 2.621

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Murata Manufacturing's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Murata Manufacturing's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Murata Manufacturing afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Murata Manufacturing has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MRAA.Y Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tsuneo Murata
COMPENSATION ¥112,000,000
AGE 67
TENURE AS CEO 11.8 years
CEO Bio

Mr. Tsuneo Murata has been the President of Murata Manufacturing Co., Ltd., since June 28, 2007 and has been its Chairman since June 29, 2017. He joined Murata Manufacturing Co., Ltd. in March 1974. Mr. Murata serves as President of Murata Manufacturing at Murata Electronics Oy. He served as the Chief Executive Officer of Murata Manufacturing Co. since June 28, 2007. He served as an Executive Deputy President of Murata Manufacturing Co. Ltd. since June 2003 He serves as a Representative Director of Murata Electronics North America, Inc. He has been involved in the running and management of domestic and overseas business and sales divisions at the Murata Manufacturing Co., Ltd and its group companies for many years, accumulating a wealth of experience and a solid record of achievement. He continues to demonstrate his managerial ability and strengthen the decision-making and supervisory functions of the Board of Directors. His Brief Personal History, Positions, Responsibilities and Significant Concurrent Positions Jun 1989 Assumed the position of Member of the Board of Directors of Murata Manufacturing Co., Ltd Jun 2003 Assumed the position of Representative Director of Murata Manufacturing Co., Ltd., Jun 1991 Assumed the position of Senior Vice President of Murata Manufacturing Co., Ltd Jun 1995 Assumed the position of Senior Executive Vice President of the Murata Manufacturing Co., Ltd (Significant Concurrent Positions-Chairman of the Murata Science Foundation )

CEO Compensation
  • Tsuneo's compensation has been consistent with company performance over the past year.
  • Tsuneo's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Murata Manufacturing management team in years:

3.8
Average Tenure
59
Average Age
  • The tenure for the Murata Manufacturing management team is about average.
Management Team

Tsuneo Murata

TITLE
Chairman of the Board & President
COMPENSATION
¥112M
AGE
67
TENURE
11.8 yrs

Masanori Minamide

TITLE
VP of Accounting
TENURE
1.2 yrs

Satoshi Sonoda

TITLE
Executive VP
TENURE
3.7 yrs

Yoshiro Ozawa

TITLE
Director of Human Resources Group
AGE
56
TENURE
1.7 yrs

Toru Inoue

TITLE
Senior EVP
AGE
62
TENURE
5.7 yrs

Norio Nakajima

TITLE
Senior EVP
AGE
57
TENURE
5.8 yrs

Yoshito Takemura

TITLE
Executive VP
AGE
61
TENURE
3.8 yrs

Hiroshi Iwatsubo

TITLE
Executive VP
AGE
56
TENURE
3.8 yrs

Ryuji Miyamoto

TITLE
Senior Vice President of Corporate Planning & Administration Unit

Hideki Maruyama

TITLE
Senior Vice President of Sales & Marketing Unit
Board of Directors Tenure

Average tenure and age of the Murata Manufacturing board of directors in years:

3.3
Average Tenure
61.5
Average Age
  • The tenure for the Murata Manufacturing board of directors is about average.
Board of Directors

Tsuneo Murata

TITLE
Chairman of the Board & President
COMPENSATION
¥112M
AGE
67
TENURE
1.8 yrs

Yoshitaka Fujita

TITLE
Vice Chairman
AGE
66
TENURE
1.8 yrs

Yoshiro Ozawa

TITLE
Director of Human Resources Group
AGE
56
TENURE
0.8 yrs

Toru Inoue

TITLE
Senior EVP
AGE
62
TENURE
3.8 yrs

Norio Nakajima

TITLE
Senior EVP
AGE
57
TENURE
5.8 yrs

Yoshito Takemura

TITLE
Executive VP
AGE
61
TENURE
5.8 yrs

Hiroshi Iwatsubo

TITLE
Executive VP
AGE
56
TENURE
3.8 yrs

Hiro Yoshihara

TITLE
Outside Director
AGE
61
TENURE
2.8 yrs

Takashi Shigematsu

TITLE
Outside Director
AGE
69
TENURE
3.8 yrs

Hiroshi Ueno

TITLE
Outside Director
AGE
67
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Murata Manufacturing's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Murata Manufacturing has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MRAA.Y News

Simply Wall St News

MRAA.Y Company Info

Description

Murata Manufacturing Co., Ltd. designs, manufactures, and sells electronic components in Japan and internationally. It offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power devices, small energy devices, batteries, micro mechatronics, RFID/NFC devices, matching devices, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, isolators, RF modules, ultra-low-power short-range RFIC products, substrates, low power wide area network products, wireless connectivity platforms, low temperature co-fired ceramics multilayer substrates, and ionizers/active oxygen modules. The company provides its products for use in medical and healthcare equipment, mobile communications, industrial equipment, white goods, business machines, personal computers, and AV equipment, as well as smart home, automotive, network, data center, lighting, and security and safety applications. Murata Manufacturing Co., Ltd. has a collaboration with Truphone Limited. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.

Details
Name: Murata Manufacturing Co., Ltd.
MRAA.Y
Exchange: OTCPK
Founded: 1944
¥32,104,548,245
213,256,913
Website: http://www.murata.com
Address: Murata Manufacturing Co., Ltd.
10-1, Higashikotari 1-chome,
Nagaokakyo,
Kyoto, 617-8555,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 6981 Common Stock The Tokyo Stock Exchange JP JPY 06. Jan 1992
OTCPK MRAA.F Common Stock Pink Sheets LLC US USD 06. Jan 1992
DB MUR1 Common Stock Deutsche Boerse AG DE EUR 06. Jan 1992
OTCPK MRAA.Y UNSPONSORED ADR Pink Sheets LLC US USD 01. Dec 2008
Number of employees
Current staff
Staff numbers
75,326
Murata Manufacturing employees.
Industry
Electronic Components
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 00:12
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/22
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.