Opinions
Lorne Steinberg
Takasago International
4914-JP
TOP PICK
Jan 31, 2019
Stock price when the opinion was issued
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This is an international company. They are a flavours and fragrances company and sell to food, beverage and cosmetic businesses, which is a big growth area. Not a lot of competition. He is looking for earnings to probably double in the next 4 years. Buying a company at less than tangible BV at way less than breakup value today with earnings growth, you can’t find anywhere else. Yield of 4.25%.
This is part of the new Japan, which are the great, long term businesses that have figured out how to grow internationally. This company has had phenomenal revenue growth, because they have increased market share in the US, Europe and the rest of Asia. Flavours and fragrances are very high-tech niche businesses. This sells for 13X earnings, and less than tangible BV with double digit earnings growth, revenue growth. In the US, they would be double what they are trading for now. Dividend yield of 1.3%.
(A Top Pick May 16, 2017, Up 14%) A flavours and fragrances company with products that go into foods and perfumes. Generates double-digit earnings and equity growth, as well as ROE unlike many Japanese companies. A strong Yen hurt their last few quarters. Their international presence is growing in a very niche business.