Meiho Facility Works Ltd.

TSE:1717 Stock Report

Market Cap: JP¥10.0b

Meiho Facility Works Valuation

Is 1717 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1717 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1717 (¥879) is trading below our estimate of fair value (¥1127.75)

Significantly Below Fair Value: 1717 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1717?

Key metric: As 1717 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1717. This is calculated by dividing 1717's market cap by their current earnings.
What is 1717's PE Ratio?
PE Ratio11.1x
EarningsJP¥899.00m
Market CapJP¥9.96b

Price to Earnings Ratio vs Peers

How does 1717's PE Ratio compare to its peers?

The above table shows the PE ratio for 1717 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.1x
4346 Nexyz. Group
43.8xn/aJP¥9.6b
6087 ABISTLtd
13.8x4.9%JP¥9.9b
5570 JenobaLtd
16.6xn/aJP¥8.0b
7038 Frontier Management
61.9xn/aJP¥8.8b
1717 Meiho Facility Works
11.1x5.5%JP¥10.0b

Price-To-Earnings vs Peers: 1717 is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (34.1x).


Price to Earnings Ratio vs Industry

How does 1717's PE Ratio compare vs other companies in the JP Professional Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2168 Pasona Group
0.8x-152.3%US$501.22m
No more companies available in this PE range
1717 11.1xIndustry Avg. 15.8xNo. of Companies25PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1717 is good value based on its Price-To-Earnings Ratio (11.1x) compared to the JP Professional Services industry average (15.6x).


Price to Earnings Ratio vs Fair Ratio

What is 1717's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1717 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio10.5x

Price-To-Earnings vs Fair Ratio: 1717 is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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