Recent Share Price: ¥1,764
Accounting: Japanese GAAP
Fiscal Year: Mar. 31
Market Cap: ¥35.4 billion ($325.3 million)
Tsutsumi Jewelry Co., Ltd. is a Japan-based jewelry company. The Company is engaged in the manufacture, wholesale and retail of jewelry, such as rings, necklaces, bracelets and other accessories. Tsutsumi operates 173 wholly-owned specialty jewelry retail stores in Japan.
Points of Interest
- 2017 Annual Report lists land holdings at ¥8.3 billion, which includes a significant write-down in 2016. This estimate includes 119 stores, headquarters and manufacturing facility.
- Over the recent past, the company has bought back over ¥6 billion in stock, providing a material reduction in share count.
Insider Ownership
| Name | Equities | % |
| Seiji Tsutsumi (75 years old) | 9,732,300 | 48.50% |
| Tsutsumi Jewelry Co., Ltd. | 2,499,100 | 12.40% |
| Shizuko Tsutsumi | 1,271,600 | 6.33% |
| Tsutsumi Scholarship Foundation | 1,000,000 | 4.98% |
| Lindsell Train Ltd. | 386,799 | 1.93% |
| Brandes Investment Partners LP | 300,000 | 1.49% |
| Dimensional Fund Advisors LP | 263,000 | 1.31% |
| TIAA-CREF Investment Management LLC | 169,703 | 0.85% |
| The Vanguard Group, Inc. | 146,830 | 0.73% |
| Schroder Investment Management Ltd. | 137,700 | 0.69% |
Other
- No stock options
- Defined Pension Plan
- estimated growth in plan assets (2%)
- liability on balance sheet
- No related party transactions
- ¥93 million in lease obligations
| In Millions | 3/31/16 | 3/31/17 | 3/31/18 |
| Cash and Short-term Investments | ¥38,465 | ¥37,700 | ¥38,898 |
| (0.85 * Accounts Receivable) | ¥853 | ¥773 | ¥946 |
| (0.60 * Inventory) | ¥11,300 | ¥10,830 | ¥10,284 |
| (0.25 * Other Current) | ¥83 | ¥93 | ¥74 |
| Total Liabilities | ¥1,853 | ¥1,803 | ¥1,859 |
| Preferred Stock | ¥- | ¥- | ¥- |
| NNWC | ¥48,849 | ¥47,593 | ¥48,343 |
| NCAV | ¥56,783 | ¥55,228 | ¥55,589 |
| NCAV + LT Investments | ¥57,267 | ¥55,886 | ¥56,171 |
| TBV | ¥72,646 | ¥69,543 | ¥69,599 |
| Enterprise Value | ¥8,811 | ¥361 | ¥(5,574) |
| Retained Earnings | ¥48,554 | ¥47,078 | ¥47,150 |
| Dividends Paid | ¥(578) | ¥(554) | ¥(527) |
| Sale or Purchase of Stock | ¥(4,352) | ¥(1,695) | ¥- |
| Shares Outstanding | 18,855,948 | 18,210,691 | 17,581,299 |
| P / NNWC | 96% | 80% | 69% |
| P / NCAV | 83% | 69% | 60% |
| P / NCAV + LT Investments | 82% | 68% | 59% |
| P / TBV | 65% | 54% | 48% |
| NCAV Burn Rate | -6.1% | -2.7% | 0.7% |
| Debt / Equity | 0.0% | 0.0% | 0.0% |
| Sloan Accrual Ratio | -2.8% | -3.3% | -1.6% |
| F-Score | 6 | 7 | 7 |
| FS-Score | 7 | 8 | 8 |
| Z-Score | 17.3 | 14.7 | 12.8 |
| Beneish M-Score | (2.4) | ||
| EV / EBITDA | N/A | N/A | (4.39) |
| EV / Operating Income (5yr) | 0.72 | 0.05 | (1.04) |
| EV / Operating Income (10yr) | (0.27) | ||
| EV / FCF (3yr) | 1.77 | 0.10 | (1.37) |
| EV / FCF (5yr) | 0.90 | 0.04 | (0.71) |
| EV / FCF (10yr) | (0.30) | ||
| EBITDA (FY) | ¥(41) | ¥(395) | ¥1,270 |
| Operating Income (5yr) | ¥12,264 | ¥7,940 | ¥5,363 |
| Operating Income (10yr) | ¥20,629 | ||
| FCF (3yr) | ¥4,978 | ¥3,667 | ¥4,055 |
| FCF (5yr) | ¥9,818 | ¥8,195 | ¥7,857 |
| FCF (10yr) | ¥18,603 |
Write-ups:
Disclosure: We own shares in Tsutsumi Jewelry Co Ltd (7937:TYO)
Leaven Partners 