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4985

Earth TSE:4985 Stock Report

Last Price

JP¥5.30k

Market Cap

JP¥116.7b

7D

4.5%

1Y

-20.5%

Updated

26 Jun, 2022

Data

Company Financials +
4985 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends4/6

4985 Stock Overview

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

Earth Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Earth
Historical stock prices
Current Share PriceJP¥5,300.00
52 Week HighJP¥7,280.00
52 Week LowJP¥4,980.00
Beta0.33
1 Month Change2.51%
3 Month Change-5.69%
1 Year Change-20.54%
3 Year Change9.96%
5 Year Change-8.30%
Change since IPO92.03%

Recent News & Updates

Shareholder Returns

4985JP Household ProductsJP Market
7D4.5%8.1%1.9%
1Y-20.5%-6.1%-6.2%

Return vs Industry: 4985 underperformed the JP Household Products industry which returned -6.1% over the past year.

Return vs Market: 4985 underperformed the JP Market which returned -6.2% over the past year.

Price Volatility

Is 4985's price volatile compared to industry and market?
4985 volatility
4985 Average Weekly Movement3.3%
Household Products Industry Average Movement3.8%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

Stable Share Price: 4985 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 4985's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18924,522Katsunori Kawabatahttps://www.earth.jp

Earth Corporation manufactures, markets, imports, and exports pharmaceutical products, quasi-drug products, medical tools, household products, etc. in Japan and internationally. The company offers insecticides and repellents, bath products, oral care products, deodorizers and air fresheners, cleaning products, hygiene products, gardening products, hair growth formulas, masks, ice packs, dehumidifying agents, and other products, as well as products for pets. It also provides sanitation management services.

Earth Fundamentals Summary

How do Earth's earnings and revenue compare to its market cap?
4985 fundamental statistics
Market CapJP¥116.72b
Earnings (TTM)JP¥5.33b
Revenue (TTM)JP¥193.11b

21.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
4985 income statement (TTM)
RevenueJP¥193.11b
Cost of RevenueJP¥115.19b
Gross ProfitJP¥77.92b
Other ExpensesJP¥72.59b
EarningsJP¥5.33b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)242.16
Gross Margin40.35%
Net Profit Margin2.76%
Debt/Equity Ratio17.8%

How did 4985 perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

49%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 4985 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4985?

Other financial metrics that can be useful for relative valuation.

4985 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA8.9x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does 4985's PE Ratio compare to its peers?

4985 PE Ratio vs Peers
The above table shows the PE ratio for 4985 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.7x

Price-To-Earnings vs Peers: 4985 is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

How does 4985's PE Ratio compare vs other companies in the Household Products Industry?

Price-To-Earnings vs Industry: 4985 is good value based on its Price-To-Earnings Ratio (21.9x) compared to the JP Household Products industry average (23.4x)


Price to Earnings Ratio vs Fair Ratio

What is 4985'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.

4985 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.9x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: 4985 is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).


Share Price vs Fair Value

What is the Fair Price of 4985 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4985 (¥5300) is trading above our estimate of fair value (¥4805.11)

Significantly Below Fair Value: 4985 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: 4985 is poor value based on its PEG Ratio (2.2x)


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4985's forecast earnings growth (9.9% per year) is above the savings rate (0.02%).

Earnings vs Market: 4985's earnings (9.9% per year) are forecast to grow faster than the JP market (9% per year).

High Growth Earnings: 4985's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4985's revenue (1.8% per year) is forecast to grow slower than the JP market (4.4% per year).

High Growth Revenue: 4985's revenue (1.8% 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 (12%).


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Past Performance

How has Earth performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 4985 has high quality earnings.

Growing Profit Margin: 4985's current net profit margins (2.8%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: 4985's earnings have grown significantly by 36.2% per year over the past 5 years.

Accelerating Growth: 4985's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4985 had negative earnings growth (-7%) over the past year, making it difficult to compare to the Household Products industry average (-7%).


Return on Equity

High ROE: 4985's Return on Equity (8.6%) is considered low.


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Financial Health

How is Earth's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 4985's short term assets (¥86.4B) exceed its short term liabilities (¥64.5B).

Long Term Liabilities: 4985's short term assets (¥86.4B) exceed its long term liabilities (¥2.9B).


Debt to Equity History and Analysis

Debt Level: 4985 has more cash than its total debt.

Reducing Debt: 4985's debt to equity ratio has reduced from 57.9% to 17.8% over the past 5 years.

Debt Coverage: 4985's debt is well covered by operating cash flow (41.7%).

Interest Coverage: 4985 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 4985's dividend (2.23%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 4985's dividend (2.23%) is low compared to the top 25% of dividend payers in the JP market (3.74%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.8%), 4985's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (118.2%), 4985's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Katsunori Kawabata (50 yo)

8.25yrs

Tenure

JP¥260,000,000

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 ($USD1.92M) is about average for companies of similar size in the JP market ($USD1.54M).

Compensation vs Earnings: Katsunori's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 4985's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: 4985's board of directors are seasoned and experienced ( 12.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Earth Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Earth Corporation
  • Ticker: 4985
  • Exchange: TSE
  • Founded: 1892
  • Industry: Household Products
  • Sector: Household
  • Implied Market Cap: JP¥116.720b
  • Shares outstanding: 22.02m
  • Website: https://www.earth.jp

Number of Employees


Location

  • Earth Corporation
  • 12-1, Kanda-Tsukasamachi 2 chome
  • Chiyoda-ku
  • Tokyo
  • 101-0048
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.