Tsutsumi Jewelry Co Ltd (7937:TYO)

Recent Share Price: ¥1,764

Accounting: Japanese GAAP

Fiscal Year: Mar. 31

Market Cap: ¥35.4 billion ($325.3 million)photoshopdsp

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

Untitled

Write-ups:

  • SmartJapaneseStocks here
  • OddballStocks here

Disclosure: We own shares in Tsutsumi Jewelry Co Ltd (7937:TYO)

 

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