Recent Share Price: ¥1,764

Accounting: Japanese GAAP

Fiscal Year: Mar. 31

Market Cap: ¥35.4 billion ($325.3 million)

Tsutsumi Jewelry Co., Ltd. is a Japan-based jewelry company. The Company is engaged in the manufacture, wholesale and retail of jewelry, such as rings, necklaces, bracelets and other accessories. Tsutsumi operates 173 wholly-owned specialty jewelry retail stores in Japan.

Points of Interest

• 2017 Annual Report lists land holdings at ¥8.3 billion, which includes a significant write-down in 2016.  This estimate includes 119 stores, headquarters and manufacturing facility.
• Over the recent past, the company has bought back over ¥6 billion in stock, providing a material reduction in share count.

Insider Ownership

Name	Equities	%
Seiji Tsutsumi (75 years old)	9,732,300	48.50%
Tsutsumi Jewelry Co., Ltd.	2,499,100	12.40%
Shizuko Tsutsumi	1,271,600	6.33%
Tsutsumi Scholarship Foundation	1,000,000	4.98%
Lindsell Train Ltd.	386,799	1.93%
Brandes Investment Partners LP	300,000	1.49%
Dimensional Fund Advisors LP	263,000	1.31%
TIAA-CREF Investment Management LLC	169,703	0.85%
The Vanguard Group, Inc.	146,830	0.73%
Schroder Investment Management Ltd.	137,700	0.69%

Other

• No stock options
• Defined Pension Plan
  • estimated growth in plan assets (2%)
  • liability on balance sheet
• No related party transactions
• ¥93 million in lease obligations

In Millions	3/31/16	3/31/17	3/31/18
Cash and Short-term Investments	¥38,465	¥37,700	¥38,898
(0.85 * Accounts Receivable)	¥853	¥773	¥946
(0.60 * Inventory)	¥11,300	¥10,830	¥10,284
(0.25 * Other Current)	¥83	¥93	¥74
Total Liabilities	¥1,853	¥1,803	¥1,859
Preferred Stock	¥-	¥-	¥-
NNWC	¥48,849	¥47,593	¥48,343
NCAV	¥56,783	¥55,228	¥55,589
NCAV + LT Investments	¥57,267	¥55,886	¥56,171
TBV	¥72,646	¥69,543	¥69,599
Enterprise Value	¥8,811	¥361	¥(5,574)
Retained Earnings	¥48,554	¥47,078	¥47,150
Dividends Paid	¥(578)	¥(554)	¥(527)
Sale or Purchase of Stock	¥(4,352)	¥(1,695)	¥-
Shares Outstanding	18,855,948	18,210,691	17,581,299
P / NNWC	96%	80%	69%
P / NCAV	83%	69%	60%
P / NCAV + LT Investments	82%	68%	59%
P / TBV	65%	54%	48%
NCAV Burn Rate	-6.1%	-2.7%	0.7%
Debt / Equity	0.0%	0.0%	0.0%
Sloan Accrual Ratio	-2.8%	-3.3%	-1.6%
F-Score	6	7	7
FS-Score	7	8	8
Z-Score	17.3	14.7	12.8
Beneish M-Score			(2.4)
EV / EBITDA	N/A	N/A	(4.39)
EV / Operating Income (5yr)	0.72	0.05	(1.04)
EV / Operating Income (10yr)			(0.27)
EV / FCF (3yr)	1.77	0.10	(1.37)
EV / FCF (5yr)	0.90	0.04	(0.71)
EV / FCF (10yr)			(0.30)
EBITDA (FY)	¥(41)	¥(395)	¥1,270
Operating Income (5yr)	¥12,264	¥7,940	¥5,363
Operating Income (10yr)			¥20,629
FCF (3yr)	¥4,978	¥3,667	¥4,055
FCF (5yr)	¥9,818	¥8,195	¥7,857
FCF (10yr)			¥18,603

Write-ups:

• SmartJapaneseStocks here
• OddballStocks here

Disclosure: We own shares in Tsutsumi Jewelry Co Ltd (7937:TYO)