JM Holdings Co., Ltd. engages in the wholesale and retail of meat, general food, fruit, fresh fish, and side dishes in Japan. The company offers seasonings, processed foods, rice, bread, sakes, noodles, eggs, dairy products, and meat products, including cow meat, pork, chicken meat, ham, meat processed goods, frozen and chilled processed products, etc. JM Holdings also provides vegetable, fruits, processed vegetables, and fruit processed goods, as well as sells fresh juices and cakes. In addition, the company offers fresh fish rounds, fillets, sashimi, sushi, dried fish, seaweed, shells, crustaceans, marine processing goods, etc. Furthermore, it provides delicatessen side products, such as lunch boxes, and fried foods comprising croquette, mentikats, tonkatsu, salads, boiled foods, pottery, steamed foods, dishes etc. The company offers its products through supermarkets and stores. JM Holdings Co.,Ltd. was formerly known as Japan Meat Co.,Ltd. The company was founded in 1978 and is headquartered in Tsuchiura, Japan. This week, I fundamentally analyze JM Holdings’ stock. I review JM 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 the 2021 free cash flow of 3,895 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), 27 million shares outstanding, and 1,257 million JPY of long term debt, the DCF analysis yields us an intrinsic value of 2352.83 JPY per share.
0:42 Business Overview
1:29 Key Ratios Analysis
11:19 Discounted Cash Flow Analysis / Intrinsic Value
JM Holding’s Website: here
Morningstar Key Ratios Link: here.
Useful Resources here.
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