Toho Co., Ltd. (9602) relative valuation is now OVERVALUED. It was previously rated UNDERVALUED, and has a fundamental analysis score of 75.
Our analysis is based on comparing Toho Co., Ltd. (9602) with the following peers – Movie Studio, Inc., Players Network, Point.360 and Spotlight Capital Holdings, Inc. (MVES-US, PNTV-US, PTSXQ-US and SLCH-US).
Toho Co., Ltd. (9602)’s price of USD 35.500 is greater than CapitalCube’s implied price of USD 23.10. At this level, CapitalCube believes that Toho Co., Ltd. (9602) is overvalued. Over the last 52 week period, the stock has fluctuated between USD 27 and USD 35.500.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It’s current Price/Book of 2.18 is about median in its peer group.
- TKCOF-US’s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
- TKCOF-US has a successful operating model with relatively high net profit margins and asset turns.
- Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
- TKCOF-US’s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- While TKCOF-US’s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
- The company’s level of capital investment suggests it might be under-investing in a business with above median returns.
Toho Co., Ltd. (9602) has a fundamental score of 75 and has a relative valuation of OVERVALUED.
Toho Co., Ltd. (9602) appears on the top right hand quadrant of CapitalCube’s Value – Price Matrix. We classify this as ‘Safety’. In other words, Toho Co., Ltd. (9602) has a relatively high Fundamental Analysis score of 75, while being potentially overvalued and trading higher than its CapitalCube Implied Price of 23.10. There might be some safety in this stock where it’s fundamental strength perhaps justifies its relatively higher price.
Quadrant label definitions. Hover to know more
Drivers of Valuation
The market seems to expect TKCOF-US to maintain its relatively high returns.
TKCOF-US’s operating performance is higher than the median of its chosen peers (ROE of 12.00% compared to the peer median ROE of -33.36%) but the market does not seem to expect higher growth relative to peers (P/E of 18.63 compared to peer median of 18.63) but simply to maintain its relatively high rates of return.
The company’s current Price/Book of 2.18 is about median in its peer group.
Quadrant label definitions. Hover to know more
TKCOF-US has maintained its relatively high ROE profile from the recent year-end.
A complete list of valuation metrics is available on the company page.
Toho Co., Ltd. engages in film and theater production. It operates through the following segments: Movie Film, Theater, Real Estate, and Others. The Movie Film segment produces, distributes, and exhibits movies; and creates and sells video programs, television programs, and commercial films. The Theater segment produces, presents, and sells theatrical works; and manages talent agencies. The Real Estate segment leases, maintains, and manages properties; and provides road maintenance and repair services. The Others segment operates restaurants, recreational, and sports facilities. The company was founded by Ichizo Kobayashi on August 12, 1932 and is headquartered in Tokyo, Japan.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.