6502 JP
TOSHIBA CORP
TMT, Consumer, Industrial/Transportation, Event Driven/Special Sit
01/17/2018
Presented
| Date | 01/12/2018 |
| Price | ¥3,190.00 |
| Market Cap | $11.28B |
| Ent Value | $16.75B |
| P/E Ratio | N/A |
| Book Value | N/A |
| Div Yield | 0% |
| Shares O/S | 423.35M |
| Ave Daily Vol | 4,685,175 |
| Short Int | N/A |
Current
| Price | ¥4,590.00 |
| Market Cap | $16.60B |
| TOSHIBA Corp. engages in the manufacture and sale of electronic and electrical products. It operates through the following segments: Energy and Infrastructure, Community Solutions, Healthcare Systems and Services, Electronic Devices and Components, Lifestyle Products and Services, and Others. The Energy and Infrastructure segment offers hydro, solar, geothermal and wind power generation facilities in the renewable space, as well as thermal, hydroelectric and nuclear power generation systems. It also supplies power transmission and distribution systems that deliver electricity to homes, commercial facilities and other users. The Community Solutions segment includes city infrastructure solutions, that support management systems for water, roads, disaster prevention and broadcasting; building solutions, that handles energy saving through the usage of eco-friendly elevators and escalators, air conditioning, and lighting; and retail solutions, which delivers advanced POS systems. The Healthcare Systems and Services segment provides healthcare system and service solutions including diagnostics and treatment, prevention, prognosis and nursing care, and health promotion. The Electronic Devices and Components segment handles the development of NAND Flash memories, semiconductor business, and system LSI business. The Lifestyle Products and Services segment includes digital products like LCD TV and Blu-ray Disc player, Notebook PC and tablet, and home appliances. The Others segment includes clouds solutions and logistics services. The company was founded by Hisashige Tanaka and Ichisuke Fujioka in July 1875 and is headquartered in Tokyo, Japan.^ ^ |
Please note, this stock split on 09/26/2018 at a ratio of 1/10. 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 ¥319 JPY.
Publicly traded companies mentioned herein: Brookfield Asset Management Inc (BAM), Hitachi Ltd (6501 JP), Samsung Electronics Co Ltd (005930 KS), Toshiba Corp (6502 JP), Western digital Corp (WDC)
Highlights
The presenter is long shares of Toshiba Corp (6502 JP) at 319 JPY, and sees the crystallization of some key catalysts simplifying the conglomerate’s story, and providing it with a substantial amount of cash that will need to be deployed. The sale of both the NAND memory business and Westinghouse are pending. As reported, the deals are worth >$20bn: $18bn for the memory business, and $4.6bn for Westinghouse. Thus, the “stub”, which is a fairly diverse set of businesses, is presently trading at just 3.5 turns on his 2018 numbers. This is a steep discount compared to Hitachi, Toshiba’s closest comp, which trades at over 6x EBITDA (other Japanese conglomerates trade at closer to 8x, he added). Using a simple sum-of-the-parts analysis, or 5x multiple to EBITDA, suggests Toshiba stock would be more fairly valued at 400 yen.
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