Sector financial performance:

This company, which is primarily a manufacturer and marketer of consumer household goods, has been grouped into household goods sector in household goods& service industry.

It seems that there has been a growing demand from US market for household goods and personal care products. This has been reflected by the continuingly increasing sale volume since 2014 (annual average growth rate of 4%). In addition, demand has grown faster pace in international market.

However, we have seen an increasing pressure on price as a result of competition among brands and of unfavourable climate in retail industry. And this has been reflected by the decreasing selling price or product mix’s shifting to power price products.

As a result of lower products costs (material costs) and increased sales, the typical companies’ gross margin has gone up to about 45% in 2017 and the typical operating margin up to about 19% with a SG&A as percentage of sales of about 25%.

The typical average stock Price/cash flow ratio is: 27(interest/EBI ratio of 11%) and stock price/sales ratio is about 3.

                                                                                  click for more about this industry

Company performance:

It seems that the demand for products of this company in the past several years has been strong and growing as indicated by the continuingly increasing sales volume accompanying with increase in selling price. There is an apparent shifting of product mix to lower price product.

The first six months of fiscal 2018 compared with the same period of 2017

Net sales (including currency& acquisition) increased 2% primarily due to increase of 3% in sales volume offset by unfavourable products mix.

Fiscal 2017 compared with 2016

Net sales (including currency& acquisition) increased 4% primarily due to increase of 6% in sales volume offset by unfavourable products mix.

Fiscal 2016 compared with 2015

Net sales (including currency& acquisition) increased 2% primarily due to increase of 4% in sales volume offset by unfavourable products mix.

Fiscal 2015 compared with 2014

Net sales (including currency& acquisition) increased 3% primarily due to increase of 2% in sales volume and increase in price.

Its gross margin has increased by about 70 basis points since 2014 due to lower commodity costs. Its SG&A as percentage of sales has been at around 24% and its operating margin has been at around 18%.

Stock price

This stock currently has a stock price/cash flow ratio of 26 ($133). We think that its stock is being relatively fairly valued compared with its peers.