Kaga Electronics Co Ltd Growth Forecast and Market Analysis: A Growing Investment Opportunity

KAGA ELECTRONICS CO., LTD. is a Japanese company that has been engaged in the manufacture and sale of electronic products since 1968. It is engaged in the development, manufacture and sale of semiconductors. It also sells personal computers (PCs), PC peripheral equipment, and photographic and video products. It also produces computer videos and develops entertainment products. It also provides repair services for electronic equipment.

Kaga s'échange à un prix assez intéressant, à douze fois les bénéfices récurrents, 8.7 fois le free cashflow et 1.25 fois la valeur comptable. C'est surtout du point de vue des ventes que le cours est attractif, avec un ratio de 0.37. Le dividend yield est modeste, à 1.44%, mais s'explique par un distribution ratio  de seulement 17.4%. Il reste donc une sacrée marge de manoeuvre à Kaga pour augmenter son dividende, comme elle l'a déjà fait par le passé, ou alors pour investir dans le développement de la société.

The dividend, profits, cash reserves and asset values are all growing over the long term, which proves that the company is managing to create shareholder value over time. This is also reflected in the share price, which has more than quadrupled in the last five years.

Liquidity reserves are very comfortable, with a current ratio of 2.06 (up) and a reduced liquidity ratio of 1.68. However, we are still at reserve levels that are not too excessive, which would represent a waste of available resources.

There gross margin est en hausse, à 13.7%, le rendement des actifs progresse aussi, à 5.55%, le taux d'endettement est en baisse, à 3.66% et même le nombre d'actions en circulation a légèrement diminué en 2017. Les voyants sont au vert pour Kaga Electronics.

Kaga is a great company with solid fundamentals. With this company we are certainly touching on an area more sensitive to economic upheavals, however Kaga has broad enough shoulders to face them. The share price has risen sharply in recent years, but we are at levels identical to those of 2006, and even of... 1990. This famous Japanese bubble has definitely left its mark. We can therefore reasonably imagine that Kaga's share price will finally exceed its historical highs in the not too distant future.

Currently the company is slightly undervalued at current figures. However, if earnings per share continue to grow at a pace more or less as strong over the next five years as they have over the past five (from 16.06 JPY per share in 2013 to 249.4 JPY in 2017), then Kaga's share price could easily double over the same period.

I bought Kaga last week.