Daito Koun operates as a logistics company in Japan. The company engages in the port transportation, transportation, warehousing, customs clearance, freight car transportation, packing, waste collecting, food freezing and refrigeration, worker dispatch, and non-life insurance agency businesses. It is also involved in the import/export and sale of various goods; and leasing of real estate properties. This week, I fundamentally analyze Daito Koun’s stock. I review Daito Koun’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 2018-2021 average free cash flow of 626 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), 9 million shares outstanding, and 954 million JPY of long term debt, the DCF analysis yields us an intrinsic value of 1,050.88 JPY per share.
0:00 Introduction / Business Overview
1:29 Key Ratios Analysis
10:52 Discounted Cash Flow Analysis / Intrinsic Value
Daito Koun’s Website: here
Morningstar Key Ratios Link: here.
Useful Resources here.
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