OTCPK:SEKE.Y

Stock Analysis Report

Executive Summary

Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, wearable and industrial products, and other businesses.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SEKE.Y

-3.6%

US Tech

-1.0%

US Market


1 Year Return

1.3%

SEKE.Y

72.8%

US Tech

18.0%

US Market

Return vs Industry: SEKE.Y underperformed the US Tech industry which returned 72.8% over the past year.

Return vs Market: SEKE.Y underperformed the US Market which returned 18% over the past year.


Shareholder returns

SEKE.YIndustryMarket
7 Day0%-3.6%-1.0%
30 Day2.4%-2.4%0.6%
90 Day3.1%17.9%7.9%
1 Year1.3%1.3%75.4%72.8%20.4%18.0%
3 Year-33.3%-33.3%123.1%107.9%48.0%38.5%
5 Year-17.6%-17.6%142.8%119.0%72.2%53.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEKE.Y ($7.55) is trading above our estimate of fair value ($4.68)

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


Price To Earnings Ratio

PE vs Industry: SEKE.Y is good value based on its PE Ratio (18.3x) compared to the Tech industry average (21.5x).

PE vs Market: SEKE.Y is poor value based on its PE Ratio (18.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SEKE.Y is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SEKE.Y is good value based on its PB Ratio (1.1x) compared to the US Tech industry average (1.8x).


Next Steps

Future Growth

How is Seiko Epson forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEKE.Y's forecast earnings growth (10.1% per year) is above the savings rate (1.7%).

Earnings vs Market: SEKE.Y's earnings (10.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: SEKE.Y's revenue (1.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SEKE.Y's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEKE.Y's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Seiko Epson performed over the past 5 years?

-19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEKE.Y has high quality earnings.

Growing Profit Margin: SEKE.Y's current net profit margins (3.1%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: SEKE.Y's earnings have declined by -19.7% per year over the past 5 years.

Accelerating Growth: SEKE.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: SEKE.Y had negative earnings growth (-39.2%) over the past year, making it difficult to compare to the Tech industry average (-3.2%).


Return on Equity

High ROE: SEKE.Y's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Seiko Epson's financial position?


Financial Position Analysis

Short Term Liabilities: SEKE.Y's short term assets (¥638.5B) exceed its short term liabilities (¥290.4B).

Long Term Liabilities: SEKE.Y's short term assets (¥638.5B) exceed its long term liabilities (¥261.8B).


Debt to Equity History and Analysis

Debt Level: SEKE.Y's debt to equity ratio (40.3%) is considered high.

Reducing Debt: SEKE.Y's debt to equity ratio has reduced from 41.8% to 40.3% over the past 5 years.

Debt Coverage: SEKE.Y's debt is well covered by operating cash flow (44.5%).

Interest Coverage: SEKE.Y's interest payments on its debt are well covered by EBIT (166.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: SEKE.Y's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is Seiko Epson's current dividend yield, its reliability and sustainability?

3.66%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: SEKE.Y's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SEKE.Y's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.9%), SEKE.Y'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?

4.7yrs

Average management tenure


CEO

Minoru Usui 0

12.1yrs

Tenure

JP¥109,000,000

Compensation

Mr. Minoru Usui has been President of Seiko Epson Corporation since 2008 and also serves as its Representative Director. 


CEO Compensation Analysis

Compensation vs Market: Minoru's total compensation ($USD975.86K) is below average for companies of similar size in the US market ($USD6.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Minoru Usui
President & Representative Director12.1yrsJP¥109.00m0.049% ¥2.6m
Motonori Okumura
Managing Executive Officer & General Administrative Manager of Production Planning Div.2.7yrsno datano data
Koichi Kubota
Senior Managing Executive Officer & Representative Director7.7yrsno data0.0086% ¥449.6k
Hideki Shimada
Managing Executive Officer & Deputy COO of Printer Solutions Operations Division2.7yrsno datano data
Junichi Watanabe
Managing Exec. Officer & Deputy COO of Wearable Products & Industrial Solutions Operations Segment0yrsno datano data
Masayuki Kawana
Executive Officer & Director0yrsno data0.0028% ¥146.0k
Sunao Murata
Technology Officer0yrsno datano data
Toshiya Takahata
Executive Officer & Director0.7yrsno data0.0024% ¥124.5k
Tsuyoshi Kitahara
Technology Officer0yrsno datano data
Nobuyuki Shimotome
Executive Officer & COO of Microdevices Operations Division4.7yrsno datano data

4.7yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Minoru Usui
President & Representative Director12.1yrsJP¥109.00m0.049% ¥2.6m
Koichi Kubota
Senior Managing Executive Officer & Representative Director7.7yrsno data0.0086% ¥449.6k
Masayuki Kawana
Executive Officer & Director0yrsno data0.0028% ¥146.0k
Toshiya Takahata
Executive Officer & Director0.7yrsno data0.0024% ¥124.5k
Tatsuaki Seki
Managing Executive Officer & Director0yrsno data0.0017% ¥88.2k
Yasunori Ogawa
Managing Executive Officer & Director1.7yrsno data0.0033% ¥174.4k
Hideaki Omiya
Outside Director0yrsno data0.0023% ¥119.8k
Michihiro Nara
Independent Outside Director0yrsno data0.0014% ¥76.2k
Mari Matsunaga
Outside Director0yrsno data0.0013% ¥66.7k
Chikami Tsubaki
Outside Director0yrsno data0.0014% ¥73.0k

1.7yrs

Average Tenure

66.5yo

Average Age

Experienced Board: SEKE.Y's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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

Seiko Epson Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seiko Epson Corporation
  • Ticker: SEKE.Y
  • Exchange: OTCPK
  • Founded: 1942
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: JP¥586.696b
  • Listing Market Cap: JP¥5.253b
  • Shares outstanding: 345.93m
  • Website: https://global.epson.com

Number of Employees


Location

  • Seiko Epson Corporation
  • 3-3-5 Owa
  • Suwa
  • Nagano
  • 392-8502
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEKE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2003
6724TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJun 2003
SE7DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2003
SEKE.YOTCPK (Pink Sheets LLC)ADRUSUSDJul 2004

Biography

Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, wearable and industrial products, and other businesses. Its Printing Solutions segment offers inkjet printers, serial impact dot matrix printers, page printers, color image scanners, large-format inkjet printers, industrial inkjet printing systems, printers for use in POS systems, label printers and related consumables, dry process office papermaking systems, personal computers, and others. The company’s Visual Communications segment provides 3LCD projectors, high-temperature polysilicon TFT LCD panels for 3LCD projectors, smart glasses, and others. Its Wearable & Industrial Products segment offers wristwatches, watch movements, industrial robots, IC handlers, crystal units, crystal oscillators, quartz sensors, and others; and sensing equipment for use in the personal health and sports fields, etc. It also provides crystal units, crystal oscillators, and quartz sensors for consumer, automotive, and industrial equipment applications; CMOS LSIs and other chips primarily for consumer electronics and automotive applications; and metal powders for use as raw materials in the production of electronic components, etc., as well as value-added surface finishing in a range of industrial fields. The company operates an Epson Certified Solution Center in Canada, Toronto. It has operations in Japan, the Philippines, Indonesia, China, and internationally. The company was founded in 1942 and is headquartered in Suwa, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:18
End of Day Share Price2020/02/21 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.