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Benesse Holdings has the largest share of the Japanese education sector in Japan, but it is cutting its dividend significantly in 2019.
The stock price is trending downwarddue to this…
Benesse Holdings is a stock with a high percentage of unrealized losses, but it has started an uptrend in 2021.
I would like to explain the stock price and when to buy Benesse Holdings.
The author has three years of investment experience and has experience in the securities industry.
By reading this article, you’ll learn all you need to know about Benesse Holdings!
What is Benesse Holdings?
Benesse Holdings was founded in 1955 as a bookstore in Okayama Prefecture, but it had a surprising start.
The previous year, the company’s predecessor, a publishing company, had failed to collect cash despite its good performance and went bankrupt.
As a result of this experience, the company learned the lessons of “cash basis,” “inventory-free management,” and “continuous business.
In the 1960s, the company started a high school mock test business, mainly in Okayama Prefecture.
We realized joint mock examinations with the idea of sharing data among multiple schools, which was novel at the time.
Since then, the company has also provided early childhood courses in Taiwan, China and Korea.
In the 1990s, the company expanded its business in anticipation of Japan’s internationalization and aging population.
The company acquired Berlitz, the world’s largest language company, and established a nursing care business.
Benesse Holdings’ Business Activities
Benesse is engaged in five businesses.
1 Domestic Education
This business, which accounts for 48% of all businesses, is engaged in distance learning and education.
The company also operates cram schools and prep schools.
2 Global Business
Our global business, which accounts for 12% of our total business, supports children’s education in Taiwan, China, and Indonesia.
We are expanding our experience in early childhood education cultivated in Japan to the global market, especially in Asia.
3 Nursing and childcare
This is the second largest business, accounting for 29% of our total business.
Our business focuses on nursing care, food delivery, and childcare.
In the nursing care division, we operate more than 300 residences for the elderly in urban areas throughout Japan.
In the childcare division, we operate 60 nursery schools and 28 school-age facilities in the Tokyo metropolitan area to support early childhood education.
The Berlitz business, which accounts for 6% of our total business, supports the realization of dreams through language.
In language education, we provide services in more than 70 countries around the world, supporting language learning for all generations.
In the area of study abroad support, we utilize our 40 locations in five countries to help students learn English efficiently.
These businesses account for 3.8% of our total business, and include women’s lifestyle and living information, pets, and other businesses.
Through these magazines, we provide consumers with useful information for their daily lives.
Benesse’s indices are summarized below.
|PER||PBR||Dividend yield||Payout ratio||Equity ratio||Market capitalization|
Looking at each of the indicators, we can see that PBR has a ratio close to the average, while market capitalization has a fairly large scale in terms of industry.
Although the equity ratio is on a downward trend due to investments in new businesses, etc., there is no need to worry as the company has secured a certain amount of capital.
The dividend for the next fiscal year is expected to be 50 yen, unchanged from the current fiscal year.
When is it time to buy Benesse Holdings?
I think the best time to buy is around 2,600 yen.
The stock has been in a step-up market since February 2021, and although there were times when the share price fell sharply, it has been rising since then.
Since 70% of the Japanese market is made up of foreign participants, there are times when terrible short-selling tactics are used.
I recommend that you do not be swayed by such tactics and look at the company’s growth over the long term.
What is your stock price forecast?
In July of 2021, the stock price reached a high of 2,800 yen and returned to the pre-infection level.
However, since then, the stock price has been gradually declining.
Personally, I believe that this is a short-term muscle adjustment, so it is better to remain calm at this point.
If the stock price starts to rise again, you can consider buying.
- The best time to buy Benesse is around 2600 yen.
- The company is the largest in Japan.
- The company is also focusing on overseas expansion.
Benesse Holdingshas been explained!
Investing is a personal responsibility. Please make your own final decision after referring to various opinions.
I will continue to introduce Japanese stocks in the future, so please stay tuned.
Thank you for reading to the end!