Panasonic is a conglomerate that has diversified from its consumer electronics roots. It has five main business units: appliances (air conditioners, refrigerators, laundry machines, and TVs); life solutions (LED lighting, housing systems, and solar panels; connected solutions (PCs, factory automations, and in-flight entertainment systems); automotive (infotainment systems and rechargeable batteries); and industrial solutions (electronic devices). This week, I fundamentally analyze Panasonic’s stock. I review Panasonic’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 the 2021 free cash flow of 207,611 million JPY figure, a 6% growth rate of FCF (growth for the next 10 years), 10% discount rate, 4% long term growth rate (growth from 10 year mark to perpetuity), 2,335 million shares outstanding, and 879,728 million JPY of long term debt, the DCF analysis yields us an intrinsic value of 1,377.99 JPY per share.
Timestamp
0:00 Introduction / Business Overview
3:46 Key Ratios Analysis
13:12 Discounted Cash Flow Analysis / Intrinsic Value
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References:
Panasonic’s Website: here
Morningstar Key Ratios Link: here.
Useful Resources here.
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