会社概要
What we hope Tosho to improve the shareholders’ value as a shareholder are 1) improvement of its extremely low operating profit margin through reconsidering mid-term management plan and investment plan and 2) Special dividend funded by disposal of RECRUIT shares to optimize excess net assets.

Abnormal valuation compared to other listed companies

Tosho’s EV/EBITDA is negative 14.7x as of the end of Nov. 2018. We calculate EV/EBITDA of almost all the companies of the Tokyo stock price index (hereinafter referred to as “TOPIX”) individually. TOPIX consists of 2,117 companies as of the end of Nov. 2018 and companies whose EV/EBITDA are negative are only 2% of TOPIX. Tosho’s EV/EBITDA is in the worst class among TOPIX members.

Note 1. Market capitalization is calculated as of end of Nov. 2018.
Note 2. In calculating the distribution of EV/EBITDA above, we excluded Insurance, Banks, Securities companies and other financial companies and Japan Post Bank which is categorized as service sector. Also, we excluded negative EBITDA companies.
Note 3. The calculation of EV is as following; (Market capitalization + interest bearing debt – cash – cash equivalent – invested securities + expected tax for the sale of invested securities), “Interest bearing debt – cash – cash equivalent – invested securities + expected tax for the sale of invested securities” is referred as “net debt”
Note 4. The calculation of EBITDA is as following; Operating profit expectation + depreciation + amortization.

The breakdown of Tosho’s EV/EBITDA below makes it clear that its negative leverage is the cause of its negative EV/EBITDA. Leverage is defined as “1 + net debt / market cap”.

Note 1. Million
Note 2. Market capitalization is as of end of Nov. 2018. Other numbers are as of Sep. 2018.

Tosho’s leverage is significantly low compared to other companies in the same industry and it is the cause of Tosho’s extremely low EV/EBITDA.

Note. The definition of peers is based on Nikkei NEEDS. The peers’ margin is calculated by simple average of the following companies in printing industry;
KYORITSU PRINTING CO., LTD. (7838), TOPPAN FORMS CO., LTD. (7862), KOSAIDO CO., LTD. (7868), PRONEXUS INC. (7893), TOPPAN PRINTING CO., LTD. (7911), DAI NIPPON PRINTING CO., LTD. (7912, shown as DNP in the chart), KYODO PRINTING CO., LTD. (7914), MITSUMURA PRINTING CO., LTD. (7916), TAKARA PRINTING CO., LTD. (7921), NAKABAYASHI CO., LTD. (7987)

  • 株式会社ストラテジックキャピタル

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