Challenges Tosho faces
Tosho faces 2 major challenges, the first is extremely low operating profit margin and the second is the excess of net assets. Reviewing Tosho’s 15 years earnings trend, its performance is getting worse year by year.
Tosho’s performance and its net assets in fifteen years
（Source：QUICK ASTRA MANAGER、Tosho’s releases in Aug and Sep in 2016）
A headwind due to digitalization in printing industry cannot explain the whole reason of Tosho’s low operating profit margin.
The truth is that Tosho had not given adequate reaction to such market changes and this resulted in a huge operating profit margin gap between Tosho and other companies in the same industry (hereinafter referred to as “peers”) in these 15 years. Now, Tosho is left behind in the printing industry.
Operating margin comparison with peers
- （note）The definition of peers is based on Nikkei NEEDS. The peers’ margin is calculated by simple average of the followings 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), KYODO PRINTING CO., LTD. (7914), MITSUMURA PRINTING CO., LTD. (7916), TAKARA PRINTING CO., LTD. (7921), NAKABAYASHI CO., LTD. (7987)