A report says that a list of 20 companies with PERs in the single digits, PBRs below 1x and dividend yields of around 5% was selected from Zaikei Online’s data, focusing on “neglected high-dividend stocks” such as シライ電子. Monitoring future IR disclosures and financial stability is considered important.
This article screens stocks, primarily on the TSE Standard Market, that meet the conditions of a single-digit PER, PBR below 1x and a dividend yield of around 5%, and explains when reviewing “neglected stocks” may be effective, using シライ電子 as an example. The starting point is a list of leading stocks compiled by Zaikei Online as of October. The plan is to select 20 companies with forward PERs in the single digits and check their listing status and latest IR information individually. Companies that have announced business integrations and those scheduled for delisting are excluded from the leading stocks.
While changes in the market environment, including rising long-term interest rates and higher crude oil prices and declines in semiconductor stocks, continue to unsettle an investment environment centered on growth stocks, interest is growing in reviewing undervalued stocks backed by earnings and net assets. The article notes that the TSE has updated its request for management to focus on the cost of capital, providing an institutional tailwind, but that related disclosures cover approximately 90% of Prime Market companies compared with only around 50% of Standard Market companies. Future IR developments are identified as a point to watch because they may encourage higher valuations for small-cap stocks.
◎ In its examination of specific examples and risk factors, the article states that 国際計測器 (7722) derives most of its revenue from tire-related testing equipment and has a high overseas sales ratio of 71%. For the fiscal year ending March 2026, forecasts are revenue of ¥14.95 billion, operating profit of ¥2.09 billion and net profit of ¥1.50 billion, with the annual dividend expected to rise from ¥35 to ¥40. The stock is summarized as having a forward PER of 9.88x, PBR of 0.79x and yield of 5.46%. Meanwhile, 神栄 (3004) is viewed as intrinsically undervalued based on its low PER, with forecast net profit of ¥1.25 billion for the current fiscal year, PBR of 0.75x, dividend yield of approximately 5.56% and a policy of maintaining the ¥110 dividend. The impact of exit costs and room to improve its own financial position are cited as risk factors. High overseas dependence, progress in reorganizing businesses and the possibility of additional exit costs are listed as factors affecting financial stability.