7733 JP

OLYMPUS CORP

TMT, Consumer


Presented:01/16/2019
Price:¥1,118.75
Cap:$12.76B
Current Price:¥2,822.00
Cap:$27.48B

Presented

Date01/16/2019
Price¥1,118.75
Market Cap$12.76B
Ent Value$13.37B
P/E Ratio70.43x
Book Value¥323.00
Div Yield1.25%
Shares O/S1,365.68M
Ave Daily Vol7,690,188
Short IntN/A

Current

Price¥2,822.00
Market Cap$27.48B
Olympus Corp. is engaged in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical Systems, Life Sciences and Industrial, Imaging Systems, Information and Communications, and Others. The Medical Systems segment covers endoscopes, and endoscopic surgery and therapy. The Life Sciences and Industrial segment manufactures and sells biological and industrial microscopes, industrial endoscopes, non-destructive testing equipment, and printers. The Imaging Systems segment deals with digital cameras and recording devices. The Information and Communication segment sells mobile terminals such as mobile phones. The Others segment includes biomaterial manufacturing and sales, and system development. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.

Please note, this stock split on 03/27/2019 at a ratio of 4/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of 4,475 JPY

Publicly traded companies mentioned herein: Olympus Corp (7733 JP), Terumo Corporation (4543 JP)

Highlights

In what can only be considered a rare feat - at least over recent history - ValueAct has been able to successfully “force” Japanese med tech company Olympus to accept three foreign board directors. The activist firm had been acquiring the stock and disclosed its ~5% stake in May 2018. It has been able to get Rob Hale, a partner at ValueAct, appointed to the board as one of the three, and the presenter sees the potential for western med tech talent to be added in the other two seats. As such, he is long the stock. Additionally, president Hiroyuki Sasa will be replaced by Yasuo Takeuchi, the company’s current CFO, in April. Sasa has been president since 2012, following the $1.7B accounting scandal, and Takeuchi seems like a good fit. If the 15% operating margin target can be achieved over the next couple of/few years and the stock can trade at 12x EBITDA, the implied target is JPY 7,000 (up from ~4,400 yen today).

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Idea Discussion

Commentor 1 - 2 weeks ago

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