DB:WW8

Stock Analysis Report

Executive Summary

Watabe Wedding Corporation provides wedding and travel services for wedding participants worldwide.

Rewards

PE ratio (7x) is below the German market (20.6x)

Revenue is forecast to grow 6.51% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -17.7% per year for the next 3 years

Does not have a meaningful market cap (€6B)



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WW8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

WW8

3.0%

DE Consumer Services

0.07%

DE Market


1 Year Return

-19.7%

WW8

13.8%

DE Consumer Services

14.8%

DE Market

Return vs Industry: WW8 underperformed the German Consumer Services industry which returned 12.9% over the past year.

Return vs Market: WW8 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

WW8IndustryMarket
7 Day0%3.0%0.07%
30 Day-5.4%2.6%1.4%
90 Day-0.9%7.8%6.1%
1 Year-18.4%-19.7%15.6%13.8%18.4%14.8%
3 Year35.9%31.4%5.5%-0.2%17.4%7.0%
5 Year27.7%22.0%-32.5%-49.9%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WW8's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WW8's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: WW8 is good value based on its PE Ratio (7x) compared to the Consumer Services industry average (15.1x).

PE vs Market: WW8 is good value based on its PE Ratio (7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: WW8's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WW8 is good value based on its PB Ratio (0.5x) compared to the XE Consumer Services industry average (2.3x).


Next Steps

Future Growth

How is Watabe Wedding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WW8's earnings are forecast to decline over the next 3 years (-17.7% per year).

Earnings vs Market: WW8's earnings are forecast to decline over the next 3 years (-17.7% per year).

High Growth Earnings: WW8's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WW8's revenue (6.5% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: WW8's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WW8's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Watabe Wedding performed over the past 5 years?

75.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WW8 has high quality earnings.

Growing Profit Margin: WW8 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WW8 has become profitable over the past 5 years, growing earnings by 75.6% per year.

Accelerating Growth: WW8 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WW8 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (47.8%).


Return on Equity

High ROE: WW8's Return on Equity (7.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Watabe Wedding's financial position?


Financial Position Analysis

Short Term Liabilities: WW8's short term assets (¥8.2B) do not cover its short term liabilities (¥10.9B).

Long Term Liabilities: WW8's short term assets (¥8.2B) exceed its long term liabilities (¥3.6B).


Debt to Equity History and Analysis

Debt Level: WW8's debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: WW8's debt to equity ratio has increased from 20.5% to 29.2% over the past 5 years.

Debt Coverage: WW8's debt is well covered by operating cash flow (91.9%).

Interest Coverage: WW8's interest payments on its debt are well covered by EBIT (50.5x coverage).


Balance Sheet

Inventory Level: WW8 has a high level of physical assets or inventory.

Debt Coverage by Assets: WW8's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Watabe Wedding's current dividend yield, its reliability and sustainability?

0.90%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.5%industryaverage2.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: WW8's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: WW8's dividend (0.89%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: WW8's dividend payments have been volatile in the past 10 years.

Growing Dividend: WW8's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.2%), WW8's dividend payments are thoroughly 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

What is the CEO of Watabe Wedding's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average board tenure


CEO

Nobuaki Hanafusa (64yo)

0yrs

Tenure

0

Mr. Nobuaki Hanafusa serves as the Chief Executive Officer at Watabe Wedding Corporation. Mr. Hanafusa served as the President and Executive Officer of Watabe Wedding Corporation since April 2014 and also  ...


Board Age and Tenure

7.6yrs

Average Tenure

60yo

Average Age

Experienced Board: WW8's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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.


Management Team

  • Hiroya Yamamoto (61yo)

    Executive Officer

    • Nobuaki Hanafusa (64yo)

      Chief Executive Officer and Representative Director

      • Hirokazu Kogishi

        Senior Executive Officer

        • Kensuke Miyazaki

          Executive Officer

          • Masaki Nagamine

            Executive Officer

            • Yoshie Nagasawa

              Executive Officer

              • Yoshiaki Isaka

                Executive Officer and Director


                Board Members

                • Yoshitaka Hayashi (56yo)

                  External Director

                  • Hidetoshi Watabe (53yo)

                    Chairman

                    • Tenure: 5.8yrs
                  • Terumichi Saeki (77yo)

                    External Auditor

                    • Tenure: 7.6yrs
                  • Nobuaki Hanafusa (64yo)

                    Chief Executive Officer and Representative Director

                    • Hitoshi Nakauchi

                      External Director

                      • Hirokazu Kogishi

                        Senior Executive Officer

                        • Takashi Naito

                          External Director

                          • Yoshiaki Isaka

                            Executive Officer and Director

                            • Koji Yamazaki (65yo)

                              Director

                              • Makoto Motonakano (56yo)

                                Director

                                Company Information

                                Watabe Wedding Corporation's company bio, employee growth, exchange listings and data sources


                                Key Information

                                • Name: Watabe Wedding Corporation
                                • Ticker: WW8
                                • Exchange: DB
                                • Founded: 1953
                                • Industry: Specialized Consumer Services
                                • Sector: Consumer Services
                                • Market Cap: JP¥5.529b
                                • Listing Market Cap: JP¥45.288m
                                • Shares outstanding: 9.91m
                                • Website: https://www.watabe-wedding.co.jp

                                Number of Employees


                                Location

                                • Watabe Wedding Corporation
                                • Shijokarasuma FT Square
                                • 20 Naginataboko-cho
                                • Kyoto
                                • 600-8540
                                • Japan

                                Listings

                                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                                4696TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYDec 1997
                                WW8DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1997

                                Biography

                                Watabe Wedding Corporation provides wedding and travel services for wedding participants worldwide. The company manages wedding facilities; produces and sells wedding dresses; rents formal costumes, including wedding related costumes, and costumes for Coming-of-Age ceremonies, various parties, etc.; and provides costumes and photography set services. It also offers wedding related services, such as consultations for wedding halls; arranging wedding ceremonies; planning and directing wedding receptions; and bridal goods, including furniture, beddings, jewelries, and gems. The company was formerly known as Watabe Clothing Store Co., Ltd. and changed its name to Watabe Wedding Corporation in August 1996. Watabe Wedding Corporation was founded in 1953 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 Analysis2020/01/20 21:46
                                End of Day Share Price2020/01/20 00:00
                                Earnings2019/09/30
                                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.