POLA ORBIS HOLDINGS INC. (4927.TYO) is a Japanese holding of 15 companies engaged in the beauty care, fashion, real estate, building maintenance and pharmaceuticals business. 93% of POLA ORBIS business is generated from its cosmetics segment with flagship brands POLA and ORBIS which are contributing 77% to the net sales. The group distributes its products through diversified sales channels such as direct-selling, ecommerce, catalog and retail store.
The Tokyo based group has been in business since 1929 and was first listed in 2010 at TSE. The stock can be also traded in Germany and US.
The group’s multi-brand and expansion strategy to focus on the diversified needs of its customers together with restructuring and cost containment efforts have led to a quite positive trend in dividend payments and earnings growth which ranked above industry average for the past years. Revenue and operating profit increased for six consecutive years already. The stock has not only outperformed the index by a multiple – 455% in the last five years – but has also gained more than 18% since beginning of this difficult year.
With a staff of around 4,000 and revenues of 1.9bn USD the POLA ORBIS group generated a net income of 124m USD in 2015, a growth of almost 36% to the previous year. The company is currently valued 37 times its earnings. This puts high expectations on future earning continuation. With a debt to capital ratio of 1.70% the group uses only very little debt in its capital structure.
5 out of 7 covering analyst rates the group as outperformer. We expect the stock to advance another 15% this year. Definitely a company to have on the watchlist.
AIS Rating: ★★☆☆☆
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|---|
| EPS (in Mill. JPY) | 137 | 145 | 121 | 132 | 188 | 255 |
| Change | 73% | 6% | -17% | 9% | 42% | 36% |
| P/E: P/E Industry: P/B: Debt to Capital: |
33 63 2.8 23% |
(Rating and Table Updated: Jun 2016)
