Sankyo Frontier produces, sells, and rents modular buildings, self-storage, and multistory parking devices in Japan and internationally. Its products are used in various applications, such as construction site offices, temporary emergency housing, shops, offices, schools, medical facilities, etc. The company was founded in 1969 and is headquartered in Kashiwa, Japan. Sankyo Frontier Co.,Ltd. is a subsidiary of Wako Kosan Y.K. This week, I fundamentally analyze Sankyo Frontier’s stock. I review Sankyo Frontier’s 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 2021 free cash flow of 4,469 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 5,655 million JPY of long term debt, the DCF analysis yields us an intrinsic value of 6,243.23 JPY per share.
0:00 Introduction / Business Overview
0:55 Key Ratios Analysis
10:15 Discounted Cash Flow Analysis / Intrinsic Value
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Sankyo Frontier’s Website: here
Morningstar Key Ratios Link: here.
Useful Resources here.
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