Takashimaya: Is it time to invest in Japanese consumer stocks now?

Last Updated: 25. Januar 2024By

You may not be familiar with Takashimaya. You can start here with a few speaking exercises. Takashimaya is a Japanese department store chain headquartered in Osaka. The company was founded in 1829 and now has branches throughout Japan, as well as a location in New York, Taipei, Singapore, and Paris. In Japan, they are the market leader in retail.

Profit increases by 10% Takashimaya’s profit increased by 10.6% to 14.96 billion yen, compared to 13.52 billion yen a year ago. Earnings per share rose from 69.55 yen to 80.69 yen. Operating income increased by 5.8% to 221.18 billion yen from 209.01 billion yen a year ago. Just to put this into perspective: 1 yen equals 0.01 โ‚ฌ.

Expected impairment expense For the second half of the fiscal year, the company expects an extraordinary loss of 855 million yen. The reason for this is the closure of the Takashimaya branch in the Japanese city of Gifu. However, this does not change the overall success.

Dividend to be raised by 21% Because Takashimaya expects a profit of 29.5 billion yen this year, which corresponds to an earnings per share of 187.02, the company also expects a dividend of 17 yen per share compared to 14 yen per share last year. This represents a significant increase of 21%. However, before you get too excited, the current dividend yield is only 1.85%.

Limited potential for stock price growth Conclusion: A look at the stock price development of the company, which has only been listed on the stock exchange since July 2023, reveals a downward trend. When looking at analyst expectations, the mood does not get any better. 3 out of 4 analysts recommend holding, and one analyst even recommends selling. The average analyst price target is 2137 yen, which offers investors a low potential of just 3%. The highest analyst price target is 2300 yen, offering a potential of 11%. Therefore, if at all, it is best to wait for a correction before investing.