San Holdings Inc is a Japan-based holding company mainly engaged in the provision of funeral services. The Company operates in four business segments. It operates a network of approximately 70 funeral halls. The company was founded in 1932 and is headquartered in Tokyo, Japan. This week, I fundamentally analyze San Holdings’ stock. I review San Holdings’ business, look at its key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account Trailing Twelve Month’s free cash flow of 1122 million JPY figure, a 5% growth rate of FCF (growth for the next 10 years), 10% discount rate, 3% long term growth rate (growth from 10 year mark to perpetuity), 11 million shares outstanding, and 0 JPY of long term debt, the DCF analysis yields us an intrinsic value of 1,696.51 JPY per share.
Timestamp
0:00 Introduction / Business Overview
0:59 Key Ratios Analysis
10:51 Discounted Cash Flow Analysis / Intrinsic Value
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References:
San Holdings’ Website: here
Morningstar Key Ratios Link: here.
Useful Resources here.
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