4J·

Kikkoman - Basic consumption with moat

The Kikkoman $2801 (-3,93 %) share seems too interesting at the moment not to share my thoughts with you 🙂

I haven't looked at the consumer goods sector, but none of the big standard stocks seem particularly interesting to me ($NESN (+0,84 %) , $ULVR (+1,09 %) , etc.).

In addition, due to the exchange rate, I'm currently looking more closely at Japanese companies and have stumbled across Kikkoman.

Fundamental aspect:

Over the past 15 years, Kikkoman's P/E ratio has averaged over 30.

We are currently at around 21, which is well below the historical average.

Kikkoman has achieved average annual earnings growth of over 15% over the past ten years. Despite the current challenges posed by inflation and supply chain issues, the company has been able to further increase its profits, although a slowdown in profit growth is becoming apparent, which is probably also triggering the current correction.

Chart "Analysis

(I am definitely not a profit wheeler, so please forgive me if this is too simplistic😅)

From a technical point of view, the share has undergone a correction in recent months and is approaching a crucial support zone. The area around the 1300 yen mark (high - September 2018) has repeatedly served as strong support in the past (March 2021, June 2022, March 2023).

I think that a reversal at this support will take place this time as well.

Exchange rate

Another positive factor is the current favorable exchange rate between the euro and the yen. The yen is historically weak against the euro, which makes purchases of Japanese equities comparatively favorable for European investors.

I hope you enjoyed this brief assessment of $2801 (-3,93 %) and perhaps, like me, you have become aware of a great company that has so far received less attention, at least on this platform.

Sources:

Data and graphics from

https://aktienfinder.net/aktien-profil/Kikkoman-Aktie

and exchange rate from Google

25.08

Kikkoman

Acheté x500 à 7,70 €

3 850,00 €

11 Commentaires

D.S.@Cato_Bamboo

Hmm 🤔 -25% share price in the last 12 months and only 1.9% dividend yield? Haven't found the moat or anything else interesting. Ok, maybe to further diversify the negeative assets in the portfolio?

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Olli@EisenEnte

@Cato_Bamboo Kikkoman is not only the number one soy sauce brand in Germany, but is also the best-selling brand in Japan, where the majority of sales are generated. And this is despite the fact that, like Procter Gamble, the products tend to be in the mid-price segment. This is the moat. And a medium-term correction last year is one of the reasons why I find the timing interesting. Which other assets do you see as negative in the portfolio? The altcoins with a weighting of around 1.5%?

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stucky8@stucky8

Interesting, I didn't even know the share yet, thanks for the post!

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Patrick Schäfer@Hotte1909

Looks interesting. I'll add it to my watchlist

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NichtRelevant@NichtRelevant

In any case, it's nice to be introduced to a stock that we've hardly ever focused on here in the forum. I think it's good and sounds good if you're looking for a stock in the food sector.

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GeldGenie@GeldGenie

And did I miss the moat or did you not explain it? 😊

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Olli@EisenEnte

@GeldGenie I actually intended to, but didn't explain 😅 Kikkoman is actually not only the number 1 soy sauce manufacturer in our country, but also the absolute market leader in Japan with other products. Even though they are in the mid-price segment. In other words, they are premium products at affordable prices. Similar to the products from Procter Gamble. The popularity in the domestic market ensures that there is hardly any serious competition.

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MEMO@MEMO1993

I have had the company on my watchlist for some time. The valuation is down but still too expensive for me, I will use 18 kgv for my entry. You also forgot to say that they are not only the number 1 in soy sauces but also adapt the products or bring out new ones, homepage also really good. There are now more than 10 different sauces and something for everyone. They are also expanding the pipeline with soups and other simple dishes that taste really delicious. Conclusion: Super simple business model, stable sales, but still a little too expensive in every Asian household.

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GAR1986@GAR1986

Healthy downward trend that led to the change in the P/E ratio, right?

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F@Cai-pirinha

@GAR1986 share price falls earnings rise... hm

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Olli@EisenEnte

@GAR1986 That's the point, a medium-term correction is precisely the reason why I find the timing interesting.

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