TSE:4985

Stock Analysis Report

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Market Cap

JP¥146.8b

Last Updated

2021/06/18 08:23 UTC

Data Sources

Company Financials +

Executive Summary

Earth Corporation manufactures, markets, imports, and exports pharmaceutical products, quasi-drug products, medical tools, household products, etc. More Details


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

4985IndustryMarket
7 Day0%0.07%0.4%
30 Day-1.6%-0.3%3.6%
90 Day2.3%-5.6%-2.3%
1 Year-9.8%-11.5%-5.5%-6.3%25.3%22.6%
3 Year24.2%16.8%15.0%11.5%20.3%12.1%
5 Year55.5%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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 08:23
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.