DB:2MW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

METAWATER Co., Ltd. designs and constructs equipment for water treatment plants, sewage treatment plants, and waste treatment facilities in Japan and internationally.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has METAWATER's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2MW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.9%

2MW

3.5%

DE Machinery

2.7%

DE Market


1 Year Return

12.1%

2MW

6.7%

DE Machinery

10.3%

DE Market

Return vs Industry: 2MW exceeded the German Machinery industry which returned 4.2% over the past year.

Return vs Market: 2MW exceeded the German Market which returned 8.8% over the past year.


Shareholder returns

2MWIndustryMarket
7 Day-4.9%3.5%2.7%
30 Day-8.4%6.6%1.9%
90 Day-6.5%26.3%17.0%
1 Year14.3%12.1%7.8%6.7%12.8%10.3%
3 Year66.1%56.8%-27.3%-31.5%7.1%-1.4%
5 Year70.6%54.6%-1.6%-11.5%18.2%2.3%

Price Volatility Vs. Market

How volatile is METAWATER's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is METAWATER undervalued compared to its fair value and its price relative to the market?

21.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2MW (€34.8) is trading above our estimate of fair value (€27.03)

Significantly Below Fair Value: 2MW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2MW is good value based on its PE Ratio (21x) compared to the DE Machinery industry average (23.2x).

PE vs Market: 2MW is good value based on its PE Ratio (21x) compared to the German market (21.6x).


Price to Earnings Growth Ratio

PEG Ratio: 2MW is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 2MW is overvalued based on its PB Ratio (2.1x) compared to the DE Machinery industry average (1.4x).


Next Steps

Future Growth

How is METAWATER forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2MW's forecast earnings growth (6.6% per year) is above the savings rate (0.2%).

Earnings vs Market: 2MW's earnings (6.6% per year) are forecast to grow slower than the German market (24.6% per year).

High Growth Earnings: 2MW's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2MW's revenue (2.8% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: 2MW's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2MW's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has METAWATER performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2MW has high quality earnings.

Growing Profit Margin: 2MW's current net profit margins (3.9%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 2MW's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: 2MW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2MW had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Machinery industry average (-33.3%).


Return on Equity

High ROE: 2MW's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is METAWATER's financial position?


Financial Position Analysis

Short Term Liabilities: 2MW's short term assets (¥91.1B) exceed its short term liabilities (¥49.0B).

Long Term Liabilities: 2MW's short term assets (¥91.1B) exceed its long term liabilities (¥15.2B).


Debt to Equity History and Analysis

Debt Level: 2MW's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: 2MW's debt to equity ratio has reduced from 32.2% to 26% over the past 5 years.

Debt Coverage: 2MW's debt is well covered by operating cash flow (28.9%).

Interest Coverage: 2MW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is METAWATER current dividend yield, its reliability and sustainability?

1.80%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2MW's dividend (1.8%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: 2MW's dividend (1.8%) is low compared to the top 25% of dividend payers in the German market (3.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2MW has been paying a dividend for less than 10 years.

Growing Dividend: 2MW's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.5%), 2MW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Yasushi Nakamura (63 yo)

4.17yrs

Tenure

Mr. Yasushi Nakamura has been the Chief Executive Officer and President of METAWATER Co., Ltd. since June 2016. He serves as Chairman of Metawater Co., Ltd. Mr. Nakamura served as General Manager of Corpor ...


Leadership Team

NamePositionTenureCompensationOwnership
Yasushi Nakamura
CEO, President & Chairman4.17yrsno data0.022%
¥ 171.3k
Masahiro Takagi
Executive GM of Sales and Marketing Division & Executive Officer4.17yrsno datano data
Michio Fujii
Exec. Officerno datano datano data
Akira Kato
VP, Exec. Officer7.17yrsno data0.014%
¥ 108.0k
Noboru Okuda
Senior Executive Officer1.17yrsno data0.011%
¥ 86.2k
Kenji Yamaguchi
Executive Officer1.17yrsno data0.0044%
¥ 33.8k
Masayuki Nakagawa
Executive Officer & Executive GM of Financial Planning Office - Corporate Strategy Planning Division4.17yrsno datano data
Koichi Yamaguchi
Executive Officer & Executive General Manager of Procurement Center1.17yrsno datano data
Yoshito Ezure
Executive Officer & Deputy Executive GM of International Business Division1.17yrsno datano data
Tsugio Kusano
Executive Officer & Executive General Manager of Plant Construction Center1.17yrsno datano data
Susumu Kadowaki
Executive Officer and Deputy Executive General Manager of Sales & Marketing Division1.17yrsno datano data
Ken Akikawa
Executive Officer & Executive GM of International Business Division1.17yrsno datano data

1.2yrs

Average Tenure

Experienced Management: 2MW's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yasushi Nakamura
CEO, President & Chairman4.17yrsno data0.022%
¥ 171.3k
Akira Kato
VP, Exec. Officer7.17yrsno data0.014%
¥ 108.0k
Noboru Okuda
Senior Executive Officer1.17yrsno data0.011%
¥ 86.2k
Kenji Yamaguchi
Executive Officer1.17yrsno data0.0044%
¥ 33.8k
Kaoru Aizawa
Independent Outside Director4.42yrsno datano data
Kimihiko Uemura
Outside Auditor7.17yrsno datano data
Susumu Sakabe
Independent Outside Director6.17yrsno datano data
Kazuo Takimoto
Outside Auditor6.17yrsno datano data
Keiichiro Sue
Independent Outside Director6.17yrsno datano data
Shigeru Hatsumata
Audit & Supervisory Board Member1.17yrsno data0.0049%
¥ 37.6k
Motofumi Matsumura
Independent Outside Director4.17yrsno datano data
Fumiko Kosao
Independent Outside Director3.17yrsno datano data

4.4yrs

Average Tenure

63yo

Average Age

Experienced Board: 2MW's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

METAWATER Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: METAWATER Co., Ltd.
  • Ticker: 2MW
  • Exchange: DB
  • Founded: 2007
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥96.777b
  • Listing Market Cap: JP¥772.096m
  • Shares outstanding: 21.72m
  • Website: https://www.metawater.co.jp

Number of Employees


Location

  • METAWATER Co., Ltd.
  • JR Kanda Manseibashi Building
  • 1-25 Kandasuda-cho
  • Tokyo
  • 101-0041
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9551TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2014
2MWDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2014
MTWT.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2014

Biography

METAWATER Co., Ltd. designs and constructs equipment for water treatment plants, sewage treatment plants, and waste treatment facilities in Japan and internationally. The company also designs, manufactures ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 21:18
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.