DB:WA5

Stock Analysis Report

Executive Summary

Wacoal Holdings Corp. designs, manufactures, and markets women’s intimate apparel in Japan, Asia, Oceania, the Americas, and Europe.


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WA5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.1%

WA5

15.3%

DE Luxury

9.9%

DE Market


1 Year Return

-10.1%

WA5

-9.3%

DE Luxury

-17.5%

DE Market

Return vs Industry: WA5 underperformed the German Luxury industry which returned -6.7% over the past year.

Return vs Market: WA5 exceeded the German Market which returned -17.7% over the past year.


Shareholder returns

WA5IndustryMarket
7 Day9.1%15.3%9.9%
30 Day-1.0%-19.5%-16.6%
90 Day-15.0%-28.4%-24.8%
1 Year-7.2%-10.1%-7.9%-9.3%-15.0%-17.5%
3 Year-3.6%-10.9%20.1%14.0%-17.4%-24.5%
5 Year13.6%-0.2%120.7%95.8%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WA5 (€20.4) is trading below our estimate of fair value (€20.52)

Significantly Below Fair Value: WA5 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WA5 is poor value based on its PE Ratio (22.9x) compared to the Luxury industry average (21.1x).

PE vs Market: WA5 is poor value based on its PE Ratio (22.9x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: WA5 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: WA5 is good value based on its PB Ratio (0.7x) compared to the DE Luxury industry average (1.3x).


Next Steps

Future Growth

How is Wacoal Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WA5's forecast earnings growth (12.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: WA5's earnings (12.2% per year) are forecast to grow slower than the German market (14.3% per year).

High Growth Earnings: WA5's earnings are forecast to grow, but not significantly.

Revenue vs Market: WA5's revenue (2.3% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: WA5's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WA5's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Wacoal Holdings performed over the past 5 years?

-18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WA5 has a large one-off gain of ¥6.8B impacting its December 31 2019 financial results.

Growing Profit Margin: WA5's current net profit margins (3.7%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: WA5's earnings have declined by -18.8% per year over the past 5 years.

Accelerating Growth: WA5's earnings growth over the past year (66.2%) exceeds its 5-year average (-18.8% per year).

Earnings vs Industry: WA5 earnings growth over the past year (66.2%) exceeded the Luxury industry -1%.


Return on Equity

High ROE: WA5's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Wacoal Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WA5's short term assets (¥99.9B) exceed its short term liabilities (¥44.5B).

Long Term Liabilities: WA5's short term assets (¥99.9B) exceed its long term liabilities (¥28.3B).


Debt to Equity History and Analysis

Debt Level: WA5's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: WA5's debt to equity ratio has reduced from 7.1% to 1.8% over the past 5 years.

Debt Coverage: WA5's debt is well covered by operating cash flow (328.9%).

Interest Coverage: WA5 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: WA5 has a high level of physical assets or inventory.

Debt Coverage by Assets: WA5's debt is covered by short term assets (assets are 24.7x debt).


Next Steps

Dividend

What is Wacoal Holdings's current dividend yield, its reliability and sustainability?

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WA5's dividend (2.9%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: WA5's dividend (2.9%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: WA5's dividends per share have been stable in the past 10 years.

Growing Dividend: WA5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.3%), WA5's dividend payments are 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

  • Explore strong dividend paying companies in the Consumer Durables industry.

Management

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

3.8yrs

Average board tenure


CEO

Hironobu Yasuhara (68yo)

no data

Tenure

Mr. Hironobu Yasuhara serves as Vice Chairman of the board of Directors at Thai Wacoal Public Company Limited since July 23, 2019. Mr. Hironobu Yasuhara has been President of Wacoal Holdings Corp. He serve ...


Board Members

NamePositionTenureCompensationOwnership
Hironobu Yasuhara
President & Representative Directorno datano data0.014% ¥187.7k
Masashi Yamaguchi
Vice President & Directorno datano data0.0048% ¥62.5k
Akira Miyagi
Managing Director & Director1.75yrsno data0.0032% ¥41.8k
Yoshikata Tsukamoto
Chairman of the Board & Representative Directorno dataJP¥192.00m0.46% ¥6.0m
Tsunehiko Iwai
Director1.75yrsno datano data
Shigeru Saito
Outside Director2.75yrsno datano data
Tomoki Nakamura
Standing Audit & Supervisory Board Member7.75yrsno data0.066% ¥854.9k
Kiyotaka Hiroshima
Standing Audit & Supervisory Board Memberno datano data0.0048% ¥62.5k
Madoka Mayuzumi
Director4.75yrsno datano data
Hiroshi Shirai
Outside Audit & Supervisory Board Memberno datano data0.0032% ¥41.8k

3.8yrs

Average Tenure

62yo

Average Age

Experienced Board: WA5's board of directors are considered experienced (3.8 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

Wacoal Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wacoal Holdings Corp.
  • Ticker: WA5
  • Exchange: DB
  • Founded: 1946
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: JP¥155.592b
  • Listing Market Cap: JP¥1.305b
  • Shares outstanding: 62.59m
  • Website: https://www.wacoalholdings.jp

Number of Employees


Location

  • Wacoal Holdings Corp.
  • 29 Nakajima-cho
  • Kisshoin
  • Kyoto
  • 601-8530
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3591TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 1977
WA5DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1977
WACL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1977
WACL.YOTCPK (Pink Sheets LLC)SPONSORD ADR NEWUSUSDJan 1980

Biography

Wacoal Holdings Corp. designs, manufactures, and markets women’s intimate apparel in Japan, Asia, Oceania, the Americas, and Europe. It operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John, and Other Businesses segments. The company offers foundation garments, including brassieres and girdles; and lingerie, such as slips, bra-slips, and women’s briefs. It also designs, manufactures, and sells nightwear, children’s underwear, outerwear, sportswear, hosiery, and other apparel and textile goods, as well as provides various other services. In addition, the company engages in the restaurant businesses; cultural and service-related operations; construction of interiors for commercial premises; and production and sale of mannequins. It sells its apparel products on a wholesale basis to department stores, general merchandisers, and other general retailers, as well as through online. The company was founded in 1946 and is headquartered in Kyoto, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:32
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.