OTCPK:MRAA.Y

Stock Analysis Report

Executive Summary

Murata Manufacturing Co., Ltd. designs, manufactures, and sells electronic components in Japan and internationally.

Rewards

Earnings are forecast to grow 14.64% per year

Pays a reliable dividend of 1.61%

Risk Analysis

No risks detected for MRAA.Y from our risk checks.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

MRAA.Y

-10.2%

US Electronic

-10.6%

US Market


1 Year Return

0.6%

MRAA.Y

-4.4%

US Electronic

5.2%

US Market

Return vs Industry: MRAA.Y exceeded the US Electronic industry which returned -4.4% over the past year.

Return vs Market: MRAA.Y underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

MRAA.YIndustryMarket
7 Day-4.3%-10.2%-10.6%
30 Day-11.4%-11.8%-8.5%
90 Day-8.3%-10.8%-4.6%
1 Year0.6%0.6%-3.4%-4.4%7.4%5.2%
3 Year10.4%10.4%21.2%17.8%31.7%23.2%
5 Year21.7%21.7%50.8%43.3%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

20.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRAA.Y ($13.25) is trading above our estimate of fair value ($10.98)

Significantly Below Fair Value: MRAA.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRAA.Y is poor value based on its PE Ratio (20.8x) compared to the Electronic industry average (17.3x).

PE vs Market: MRAA.Y is poor value based on its PE Ratio (20.8x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: MRAA.Y is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MRAA.Y is overvalued based on its PB Ratio (2.3x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

How is Murata Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRAA.Y's forecast earnings growth (14.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MRAA.Y's earnings (14.6% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: MRAA.Y's revenue (6.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MRAA.Y's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRAA.Y's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Murata Manufacturing performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRAA.Y has high quality earnings.

Growing Profit Margin: MRAA.Y's current net profit margins (12.1%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: MRAA.Y's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: MRAA.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: MRAA.Y had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Electronic industry average (13.1%).


Return on Equity

High ROE: MRAA.Y's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Murata Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: MRAA.Y's short term assets (¥1,062.0B) exceed its short term liabilities (¥303.9B).

Long Term Liabilities: MRAA.Y's short term assets (¥1,062.0B) exceed its long term liabilities (¥261.8B).


Debt to Equity History and Analysis

Debt Level: MRAA.Y's debt to equity ratio (12.7%) is considered satisfactory.

Reducing Debt: MRAA.Y's debt to equity ratio has increased from 3.2% to 12.7% over the past 5 years.

Debt Coverage: MRAA.Y's debt is well covered by operating cash flow (153.7%).

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


Balance Sheet

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

Debt Coverage by Assets: MRAA.Y's debt is covered by short term assets (assets are 5x debt).


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.6%markettop25%4.1%industryaverage1.8%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: MRAA.Y's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: MRAA.Y's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), MRAA.Y'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?

4.7yrs

Average management tenure


CEO

Tsuneo Murata (68yo)

12.7yrs

Tenure

JP¥108,000,000

Compensation

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. Mu ...


CEO Compensation Analysis

Compensation vs Market: Tsuneo's total compensation ($USD981.60K) is below average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Tsuneo's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Tsuneo Murata
Chairman & President12.7yrsJP¥108.00m0.72% ¥252.6m
Masanori Minamide
SVP of Accounting1.1yrsno data0.00014% ¥48.9k
Satoshi Sonoda
Executive VP4.6yrsno datano data
Yoshiro Ozawa
Director of Human Resources Group1.7yrsno data0.00047% ¥164.3k
Toru Inoue
Senior EVP4.7yrsno data0.0016% ¥569.7k
Norio Nakajima
Senior EVP6.7yrsno data0.0011% ¥377.4k
Yoshito Takemura
Executive VP6.7yrsno data0.00063% ¥220.2k
Hiroshi Iwatsubo
Executive VP4.7yrsno data0.0014% ¥482.3k
Ryuji Miyamoto
Senior VP of Corporate Planning & Administration Unit and Director1.1yrsno data0.00048% ¥167.8k
Hideki Maruyama
Senior Vice President of Sales & Marketing Unit0yrsno datano data

4.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MRAA.Y's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tsuneo Murata
Chairman & President12.7yrsJP¥108.00m0.72% ¥252.6m
Masanori Minamide
SVP of Accounting1.1yrsno data0.00014% ¥48.9k
Yoshiro Ozawa
Director of Human Resources Group1.7yrsno data0.00047% ¥164.3k
Toru Inoue
Senior EVP4.7yrsno data0.0016% ¥569.7k
Norio Nakajima
Senior EVP6.7yrsno data0.0011% ¥377.4k
Yoshito Takemura
Executive VP6.7yrsno data0.00063% ¥220.2k
Hiroshi Iwatsubo
Executive VP4.7yrsno data0.0014% ¥482.3k
Ryuji Miyamoto
Senior VP of Corporate Planning & Administration Unit and Director1.1yrsno data0.00048% ¥167.8k
Takashi Shigematsu
Outside Director4.7yrsno datano data
Hiroaki Yoshihara
Outside Director3.7yrsno datano data

4.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MRAA.Y's board of directors are considered experienced (4.2 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

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


Key Information

  • Name: Murata Manufacturing Co., Ltd.
  • Ticker: MRAA.Y
  • Exchange: OTCPK
  • Founded: 1944
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥3.845t
  • Listing Market Cap: JP¥34.949b
  • Shares outstanding: 639.80m
  • Website: https://www.murata.com

Number of Employees


Location

  • Murata Manufacturing Co., Ltd.
  • 10-1, Higashikotari 1-chome
  • Nagaokakyo
  • Kyoto
  • 617-8555
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRAA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6981TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
MUR1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
MRAA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008

Biography

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 products, batteries, micro mechatronics, RFID devices, matching devices, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, ultra-low-power short-range RFIC products, wireless connectivity platforms, 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, security and safety, AI speaker and hearable applications. Murata Manufacturing Co., Ltd. has a collaboration with Truphone Limited. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:46
End of Day Share Price2020/02/27 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.