Could the extremely old management be a reason for the low valuation? CEO age 77, COO age 71 ... and other mangers also all above 70. A bit strange ... can such a management bring any innovation? Any thoughts on that issue?
You are right, not uncommon. I am not an expert on Japan, but got concerned because very old management is linked to very poor and old fashion investor relation page. How you judge the investor relations page?
But fully agree based on figures, balance sheet, and industry the company seems significantly undervalued. Only try to find the reason for the undervaluation - and the potential trigger to release the value?
Many thanks for sharing your thoughts and the great summary on this interesting company!
You write "high profit margins". Compared to other medical device manufacturers, their margins are average at best. What makes you say they are "high"?
They have roughly 40% of their balance sheet in cash. What will they do with that cash? As long as it just sits on their balance sheet, there is a) risk of bad allocation and b) 40% of an investment in non-profit making assets.
"High profit margins" in absolut terms, not in relative terms.
Would you mind elaborating, which Japanese medical device manufacturers have so much higher profit margins?
Concerning cash holdings. All of your points made are fair. But I'm getting a little tired of discussing them over and over again. I don't see Fukuda Denshi squandering the cash though!
Pleas keep in mind we are talking about a company that trades roughly 20% above NCAV here!
I'm looking at global medical device manufacturers, I'm not limited to Japan.
Tired or not of the discussion, I think with cash being such a big part of the balance sheet, it's worthy of elaboration in an in-depth analysis. But being the author, that's up to you to decide.
I comment on the analysis, and therefore mention points that I miss or have questions about. Feel free to ignore them, if they annoy you.
Sorry, I should have expressed myself differently and I do appreciate your comment. And as I said, your points are fair. I just don't know what to elaborate on in the analysis concerning the cash holding. I just haven't got the slightest idea what the company is planning to do with it.
Say you don't know and mention it as a potential risk :-)
Lacking any insight into the Japanese market, I really do appreciate your analysis! It's a welcome source for investments in a market I want to add some more to my portfolio.
Out of curiosity - have you tried contacting IR with these questions?
No, I haven't.
Could the extremely old management be a reason for the low valuation? CEO age 77, COO age 71 ... and other mangers also all above 70. A bit strange ... can such a management bring any innovation? Any thoughts on that issue?
Not so uncommon in Japan.
Sorry, no insights concerning relationship between age of management, innovation and stock valuation.
You are right, not uncommon. I am not an expert on Japan, but got concerned because very old management is linked to very poor and old fashion investor relation page. How you judge the investor relations page?
But fully agree based on figures, balance sheet, and industry the company seems significantly undervalued. Only try to find the reason for the undervaluation - and the potential trigger to release the value?
Many thanks for sharing your thoughts and the great summary on this interesting company!
Thanks and welcome!
I think page Design is ok (compared to a few years ago it is great).
Ir disclosure/ communication leaves a lot to be desired.
Please allow me two questions.
You write "high profit margins". Compared to other medical device manufacturers, their margins are average at best. What makes you say they are "high"?
They have roughly 40% of their balance sheet in cash. What will they do with that cash? As long as it just sits on their balance sheet, there is a) risk of bad allocation and b) 40% of an investment in non-profit making assets.
"High profit margins" in absolut terms, not in relative terms.
Would you mind elaborating, which Japanese medical device manufacturers have so much higher profit margins?
Concerning cash holdings. All of your points made are fair. But I'm getting a little tired of discussing them over and over again. I don't see Fukuda Denshi squandering the cash though!
Pleas keep in mind we are talking about a company that trades roughly 20% above NCAV here!
I'm looking at global medical device manufacturers, I'm not limited to Japan.
Tired or not of the discussion, I think with cash being such a big part of the balance sheet, it's worthy of elaboration in an in-depth analysis. But being the author, that's up to you to decide.
I comment on the analysis, and therefore mention points that I miss or have questions about. Feel free to ignore them, if they annoy you.
Sorry, I should have expressed myself differently and I do appreciate your comment. And as I said, your points are fair. I just don't know what to elaborate on in the analysis concerning the cash holding. I just haven't got the slightest idea what the company is planning to do with it.
Say you don't know and mention it as a potential risk :-)
Lacking any insight into the Japanese market, I really do appreciate your analysis! It's a welcome source for investments in a market I want to add some more to my portfolio.