Executive Summary
Earth Corporation manufactures, markets, imports, and exports pharmaceutical products, quasi-drug products, medical tools, household products, etc. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record and pays a dividend.
Share Price & News
How has Earth's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 4985 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 4985's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0%
4985
0.07%
JP Household Products
0.4%
JP Market
1 Year Return
-11.5%
4985
-6.3%
JP Household Products
22.6%
JP Market
Return vs Industry: 4985 underperformed the JP Household Products industry which returned -6.3% over the past year.
Return vs Market: 4985 underperformed the JP Market which returned 22.6% over the past year.
Shareholder returns
| 4985 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 0.07% | 0.4% |
| 30 Day | -1.6% | -0.3% | 3.6% |
| 90 Day | 2.3% | -5.6% | -2.3% |
| 1 Year | -9.8%-11.5% | -5.5%-6.3% | 25.3%22.6% |
| 3 Year | 24.2%16.8% | 15.0%11.5% | 20.3%12.1% |
| 5 Year | 55.5%40.0% | 80.8%72.2% | 78.4%58.9% |
Long-Term Price Volatility Vs. Market
How volatile is Earth's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Earth undervalued compared to its fair value and its price relative to the market?
24.78x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 4985 (¥6650) is trading above our estimate of fair value (¥6011.64)
Significantly Below Fair Value: 4985 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 4985 is poor value based on its PE Ratio (24.6x) compared to the JP Household Products industry average (21.8x).
PE vs Market: 4985 is poor value based on its PE Ratio (24.6x) compared to the JP market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: 4985 is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: 4985's PB Ratio (2.5x) is in line with the JP Household Products industry average.
Future Growth
How is Earth forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
11.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 4985's forecast earnings growth (11% per year) is above the savings rate (0%).
Earnings vs Market: 4985's earnings (11% per year) are forecast to grow slower than the JP market (12.9% per year).
High Growth Earnings: 4985's earnings are forecast to grow, but not significantly.
Revenue vs Market: 4985's revenue (2.1% per year) is forecast to grow slower than the JP market (5.2% per year).
High Growth Revenue: 4985's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 4985's Return on Equity is forecast to be low in 3 years time (13.7%).
Past Performance
How has Earth performed over the past 5 years?
25.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 4985 has a large one-off loss of ¥4.3B impacting its March 31 2021 financial results.
Growing Profit Margin: 4985's current net profit margins (2.9%) are higher than last year (2%).
Past Earnings Growth Analysis
Earnings Trend: 4985's earnings have grown significantly by 25.1% per year over the past 5 years.
Accelerating Growth: 4985's earnings growth over the past year (48.5%) exceeds its 5-year average (25.1% per year).
Earnings vs Industry: 4985 earnings growth over the past year (48.5%) exceeded the Household Products industry 6.4%.
Return on Equity
High ROE: 4985's Return on Equity (9.7%) is considered low.
Financial Health
How is Earth's financial position?
Financial Position Analysis
Short Term Liabilities: 4985's short term assets (¥74.6B) exceed its short term liabilities (¥55.0B).
Long Term Liabilities: 4985's short term assets (¥74.6B) exceed its long term liabilities (¥4.8B).
Debt to Equity History and Analysis
Debt Level: 4985's debt to equity ratio (10.6%) is considered satisfactory.
Reducing Debt: 4985's debt to equity ratio has reduced from 53.8% to 10.6% over the past 5 years.
Debt Coverage: 4985's debt is well covered by operating cash flow (371.2%).
Interest Coverage: 4985 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Earth current dividend yield, its reliability and sustainability?
1.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 4985's dividend (1.73%) is higher than the bottom 25% of dividend payers in the JP market (1.31%).
High Dividend: 4985's dividend (1.73%) is low compared to the top 25% of dividend payers in the JP market (2.99%).
Stability and Growth of Payments
Stable Dividend: 4985's dividends per share have been stable in the past 10 years.
Growing Dividend: 4985's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.6%), 4985'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?
5.8yrs
Average management tenure
CEO
Katsunori Kawabata (49 yo)
4.42yrs
Tenure
JP¥194,000,000
Compensation
Mr. Katsunori Kawabata has been President at Earth Chemical Co., Ltd. since March 2014 and had been its Group Chief Executive Officer since January 2017 until 2021. Mr. Kawabata serves as Chief Executive O...
CEO Compensation Analysis
Compensation vs Market: Katsunori's total compensation ($USD1.76M) is about average for companies of similar size in the JP market ($USD1.66M).
Compensation vs Earnings: Katsunori's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: 4985's management team is seasoned and experienced (5.8 years average tenure).
Board Members
Experienced Board: 4985's board of directors are considered experienced (8.3 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 been diluted in the past year, with total shares outstanding growing by 9%.
Top Shareholders
Company Information
Earth Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Earth Corporation
- Ticker: 4985
- Exchange: TSE
- Founded: 1892
- Industry: Household Products
- Sector: Household
- Market Cap: JP¥146.781b
- Shares outstanding: 22.07m
- Website: https://www.earth.jp
Number of Employees
Location
- Earth Corporation
- 12-1, Kanda-Tsukasamachi 2 chome
- Chiyoda-ku
- Tokyo
- 101-0048
- Japan
Listings
Biography
Earth Corporation manufactures, markets, imports, and exports pharmaceutical products, quasi-drug products, medical tools, household products, etc. in Japan and internationally. The company offers insectic...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/18 08:23 |
| End of Day Share Price | 2021/06/18 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.