The T. Rowe Price Japan Fund (Trades, Portfolio) increased its stake in Suzuki Motor Corp. (TSE:7269, Financial) by 60.38%, adding 112,000 shares to its portfolio in the second quarter.
The trade had a 0.82% impact on the fund's portfolio. The fund now owns 297,500 shares in the company.
Suzuki has a price-earnings (P/E) ratio of 12.37, a price-book (P/B) ratio of 1.57, a price-sales (P/S) ratio of 0.49 and a price-earnings to growth (PEG) ratio of 0.91.
Suzuki has a 6 of 10 financial strength rating with a weighted average cost of capital of 6.19%. The company’s return on invested capital is 16.06% which is calculated based on the company’s trailing 12-month income statement data.
Suzuki has a 7 of 10 profitability and growth rating with an ROC (Joel Greenblatt (Trades, Portfolio)) of 32.02%, EBITDA growth (three years) of 25.80% and EPS (three years) growth of 21.30%, ranking it above 71% of the companies within its industry.
Below is a Peter Lynch chart that shows Suzuki is trading below its intrinsic value.
Suzuki was founded by Michio Suzuki in the small coastal village of Hamamatsu, Japan in 1909. Originally named Suzuki Loom Works, it began by making looms for Japan’s giant silk industry. In 1929 the company's founder invented a new type of weaving machine, which was exported overseas. Suzuki’s first 30 years of operation focused on the development and production of these weaving machines.
After gaining a lot of momentum and success early in the company’s existence, Suzuki still believed there was more opportunity in diversification, and he looked toward getting into personal transportation. He decided to take a chance on building a small car, which he believed would be practical and useful. The project started in 1937, and within two years, Suzuki was able to successfully complete several prototype cars.
Then the war began, and the Japanese government felt that passenger cars were a “nonessential commodity.” Suzuki resumed producing looms until the war was over. After the war, he challenged himself as well as his co-workers to return to the production of motor vehicles. At the time there was a dire need for affordable, reliable transportation, and Suzuki believed that this was a tremendous opportunity.
By 1954, Suzuki was producing more that 6,000 motorcycles per month and had officially changed its name to Suzuki Motor Corp. From there the company continued to expand its operations worldwide. It now produces and manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs and a variety of other small internal combustion engines. As of March 31 the company has 14,932 employees according to the company’s website.
Suzuki is expanding its operations, trading below its intrinsic value and has been able to withstand a lot of adversity. Since the T. Rowe Price Japan Fund added 112,000 shares to its portfolio, the company’s stock price has risen by an estimated 14%.
Cheers to your investment success.
Disclosure: Author does not own any shares in this company.
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