Discounted Cash Flow Calculation for TSE:7463 using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
is considered below, and whether this is a fair price.
Price based on past earnings
Advan's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Advan has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
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
Expected Trade Distributors industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Advan's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Advan's earnings growth to the Japan market average as no estimate data is available.
Unable to compare Advan's revenue growth to the Japan market average as no estimate data is available.
Unable to determine if Advan is high growth as no earnings estimate data is available.
Unable to determine if Advan is high growth as no revenue estimate data is available.
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.
Advan's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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.
TENURE AS CEO
Mr. Hiroaki Suetugu has served as President and CEO at Advan Co. Ltd. since 2019. He had been Vice President at Advan Co. Ltd. since April 2008 until 2019. Mr. Suetugu served as General Manager of Business Headquarters at Advan Co. Ltd. since April 2004 and served as its Executive Vice Director. He served as General Manager of Tokyo Branch Second Business Division Advan Co., Ltd., since June 1996, General Manager of Business Headquarters Advan Co., Ltd., since February 2001, General Manager of Tokyo Branch Advan Co., Ltd., since February 2003, General Manager of Tokyo Branch Advan Co., Ltd., since June 2003. He served as Executive Director of Advan Co. Ltd., since April 2004. He served as Director of Tokyo Branch Second Business Division Advan Co., Ltd., since June 1996, Senior Director of Business Headquarters Advan Co., Ltd., since February 2001, Senior Director of Tokyo Branch Advan Co., Ltd., since June 2003. Mr. Suetugu had been an Executive Director of Advan Co. Ltd. since June 1996 until 2019.
Insufficient data for Hiroaki to compare compensation growth.
Insufficient data for Hiroaki to establish whether their remuneration is reasonable compared to companies of similar size in Japan.
President & CEO
Senior Managing Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Advan board of directors is about average.
Board of Directors
Standing Corporate Auditor
External Standing Corporate Auditor
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Advan Co., Ltd. manufactures, imports, and sells building materials in Japan. It provides building materials, such as tiles, natural stones, washroom spaces, bricks, floorings, bathroom vanity products, artificial grass, wood decks, kitchen products, panels/wall materials, secondary construction materials, garage doors, top board counters, wood stoves and fireplaces, and mall materials. The company was founded in 1975 and is headquartered in Tokyo, Japan.
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