TSE:6412

Stock Analysis Report

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Market Cap

JP¥190.5b

Last Updated

2021/06/23 19:01 UTC

Data Sources

Company Financials +

Executive Summary

Heiwa Corporation develops, manufactures, and sells pachinko and pachislot machines in Japan. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6412 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6412's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

6412

-3.1%

JP Leisure

-0.9%

JP Market


1 Year Return

7.1%

6412

22.5%

JP Leisure

22.3%

JP Market

Return vs Industry: 6412 underperformed the JP Leisure industry which returned 22.5% over the past year.

Return vs Market: 6412 underperformed the JP Market which returned 22.3% over the past year.


Shareholder returns

6412IndustryMarket
7 Day0.4%-3.1%-0.9%
30 Day2.2%-0.4%2.6%
90 Day0.6%-1.3%0.5%
1 Year11.9%7.1%24.7%22.5%24.9%22.3%
3 Year-18.2%-27.0%12.9%5.9%20.9%12.7%
5 Year11.8%-6.7%91.8%71.0%74.2%55.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

220.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6412 (¥1950) is trading above our estimate of fair value (¥878.42)

Significantly Below Fair Value: 6412 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6412 is poor value based on its PE Ratio (222.4x) compared to the JP Leisure industry average (22x).

PE vs Market: 6412 is poor value based on its PE Ratio (222.4x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6412 is poor value based on its PEG Ratio (10x)


Price to Book Ratio

PB vs Industry: 6412 is good value based on its PB Ratio (0.9x) compared to the JP Leisure industry average (1.1x).


Future Growth

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

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6412's forecast earnings growth (22.1% per year) is above the savings rate (0%).

Earnings vs Market: 6412's earnings (22.1% per year) are forecast to grow faster than the JP market (12.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6412's revenue (4.5% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 6412's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6412's Return on Equity is forecast to be low in 3 years time (7%).


Past Performance

How has Heiwa performed over the past 5 years?

-33.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6412 has a large one-off loss of ¥3.6B impacting its March 31 2021 financial results.

Growing Profit Margin: 6412's current net profit margins (0.8%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: 6412's earnings have declined by 33.1% per year over the past 5 years.

Accelerating Growth: 6412's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6412 had negative earnings growth (-94.6%) over the past year, making it difficult to compare to the Leisure industry average (-17.1%).


Return on Equity

High ROE: 6412's Return on Equity (0.4%) is considered low.


Financial Health

How is Heiwa's financial position?


Financial Position Analysis

Short Term Liabilities: 6412's short term assets (¥101.2B) exceed its short term liabilities (¥66.9B).

Long Term Liabilities: 6412's short term assets (¥101.2B) do not cover its long term liabilities (¥137.0B).


Debt to Equity History and Analysis

Debt Level: 6412's debt to equity ratio (53.7%) is considered high.

Reducing Debt: 6412's debt to equity ratio has reduced from 71.3% to 53.7% over the past 5 years.

Debt Coverage: 6412's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: 6412's interest payments on its debt are well covered by EBIT (26.8x coverage).


Balance Sheet


Dividend

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

4.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6412's dividend (4.1%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 6412's dividend (4.1%) is in the top 25% of dividend payers in the JP market (3%)


Stability and Growth of Payments

Stable Dividend: 6412's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6412's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (912.2%), 6412's dividend payments are not 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?

9.0yrs

Average management tenure


CEO

Katsuya Minei (65 yo)

9yrs

Tenure

JP¥109,000,000

Compensation

Mr. Katsuya Minei has been the President at Heiwa Corporation since June 28, 2012. Mr. Minei has been General Manager of Development Division at Heiwa Corporation since February 2008; its In-charge of Plan...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Katsuya's total compensation is reasonable compared to companies of similar size in the JP market.

Compensation vs Earnings: Insufficient data to compare Katsuya's compensation with company performance.


Leadership Team

Experienced Management: 6412's management team is seasoned and experienced (9 years average tenure).


Board Members

Experienced Board: 6412's board of directors are considered experienced (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

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


Key Information

  • Name: Heiwa Corporation
  • Ticker: 6412
  • Exchange: TSE
  • Founded: 1949
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: JP¥190.461b
  • Shares outstanding: 98.63m
  • Website: https://www.heiwanet.co.jp

Number of Employees


Location

  • Heiwa Corporation
  • 2-22-9, Higashiueno
  • Taito-ku
  • Tokyo
  • 110-0015
  • Japan

Listings


Biography

Heiwa Corporation develops, manufactures, and sells pachinko and pachislot machines in Japan. It is also involved in the golf course business. The company was formerly known as Heiwa Kogyo Co., Ltd. Heiwa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 19:01
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.