Broadcasting System of Niigata is a Japanese radio and television company founded in 1952. In addition to its production and broadcasting activities, it is also active in the hotel, restaurant, construction and real estate industries.
The stock is heavily undervalued, with a price-to-earnings ratio of 8.7 and a price-to-book ratio of just 0.4.
The dividend yield is not monstrous, with 1.08, but with a distribution ratio lower than 10%. The dividend remained stable between 2013 and 2016 and it has just been increased in 2017. We are not in a classic title paying increasing dividends (which increases its distributions each year), but not only is the trend bullish, but above all the dividend has a great potential for growth given the progression of profits and the very low current distribution rate.
In addition to the favorable impact on dividends, the growth in profits also translates positively into cash reserves and asset values, which demonstrates that the company is managing to create value over the long term.
Liquidity reserves are very good, with a current ratio of 2.3 (increasing) and a liquidity ratio of 2.2. This allows BSN to meet its short-term financial obligations without any problems. These reserves are ideal, i.e. sufficient for everyday life, but not excessive (which would demonstrate poor use of current assets).
Operating cash flows are positive, but gross margin is slightly down (27.6% to 25.8%). Return on assets is also positive, but also slightly down (23.89% to 23.59%). The debt ratio is down and the number of common shares outstanding is stable.
BNS already has a fairly long history that speaks in its favor. Despite the strong price increase since 2012, the stock is still clearly undervalued, having only just started to recover from the Japanese market crash of 1990... At the current price of JPY 908, I believe that the price can triple in the coming years and that the dividend will follow suit, at least in an equivalent manner.
I just took a position on this stock.
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Hello, is the stock listed on the NSE? On which stock exchange can it be purchased? Postfinance does not provide access to the Japanese market. Thank you.
Hello Vincent,
No unfortunately not on NSE. Indeed with Postfinance impossible, they do not provide access to the Japanese market. I had to go through Interactive Brokers.
It's really a shame that most traditional financial intermediaries don't give access to Tokyo... it's still the 2nd largest stock market in the world! What a shame. Especially when you think that it's the only market that's still undervalued.
Thank you Jérôme for thinking outside the box of US dividend growers.
It was nothing;-)
After reading your portfolio and the Japanese companies it includes, I became interested in NISSHIN FUDOSAN CO LTD. My buy order (IB) has not been executed yet. It is difficult to find information, except via FT.com on these Japanese companies.
I'm not surprised you're interested in this one... it's one of my favorites... +27% in a few months.
A quick little in-house analysis here:
https://www.dividendes.ch/wp-content/uploads/2017/10/Nisshin.png