OKWAVE (NSE:3808) - Share price, News & Analysis

3808 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	4/6

3808 Stock Overview

OKWAVE, Inc. operates question and answer (Q and A) community websites in Japan.

Rewards

Trading at 79.6% below our estimate of its fair value

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

High level of non-cash earnings

Dividend of 28.57% is not well covered by earnings

Shareholders have been diluted in the past year

+ 1 more risk

OKWAVE Competitors

Price History & Performance

Summary of all time highs, changes and price drops for OKWAVE
Historical stock prices
Current Share Price	JP¥105.00
52 Week High	JP¥509.00
52 Week Low	JP¥99.00
Beta	2.26
1 Month Change	-68.56%
3 Month Change	-69.21%
1 Year Change	-61.11%
3 Year Change	-94.73%
5 Year Change	-76.67%
Change since IPO	-93.56%

Shareholder Returns

	3808	JP Interactive Media and Services	JP Market
7D	-11.0%	-2.7%	-0.02%
1Y	-61.1%	-14.5%	-3.6%

Return vs Industry: 3808 underperformed the JP Interactive Media and Services industry which returned -12.1% over the past year.

Return vs Market: 3808 underperformed the JP Market which returned -2.5% over the past year.

Price Volatility

Is 3808's price volatile compared to industry and market?
3808 volatility
3808 Average Weekly Movement	17.0%
Interactive Media and Services Industry Average Movement	8.1%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 3808 is more volatile than 90% of JP stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: 3808's weekly volatility has increased from 10% to 17% over the past year.

About the Company

Founded	Employees	CEO	Website
1999	109	Michio Fukuda	https://www.okwave.co.jp

OKWAVE, Inc. operates question and answer (Q and A) community websites in Japan. The company’s services include OKWAVE, a free Q and A service that can solve different types of problems and questions; OKWAVE Plus, a Q and A community that solves the complex issues of the IoT / 5G era; GRATICA, a free thanks card service that conveys gratitude through the card; and CTRAX that allows to trade crypto assets through your smartphone. It also provides URwallet that allows you to send and receive four types of crypto assets; BCVote, an online voting system based on the blockchain technology; and Davia that provides birthday reminder and sending of greeting cards services.

OKWAVE Fundamentals Summary

How do OKWAVE's earnings and revenue compare to its market cap?
3808 fundamental statistics
Market Cap	JP¥1.38b
Earnings (TTM)	JP¥4.66b
Revenue (TTM)	JP¥1.17b

0.3x

P/E Ratio

1.2x

P/S Ratio

Is 3808 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3808 income statement (TTM)
Revenue	JP¥1.17b
Cost of Revenue	JP¥914.00m
Gross Profit	JP¥257.00m
Other Expenses	-JP¥4.40b
Earnings	JP¥4.66b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	354.38
Gross Margin	21.95%
Net Profit Margin	397.52%
Debt/Equity Ratio	22.5%

How did 3808 perform over the long term?

See historical performance and comparison

Dividends

28.6%

Current Dividend Yield

8%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 3808 (¥105) is trading below our estimate of fair value (¥513.6)

Significantly Below Fair Value: 3808 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 3808 is good value based on its PE Ratio (0.3x) compared to the JP Interactive Media and Services industry average (21.9x).

PE vs Market: 3808 is good value based on its PE Ratio (0.3x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3808's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 3808 is good value based on its PB Ratio (0.2x) compared to the JP Interactive Media and Services industry average (2.6x).

Future Growth

How is OKWAVE forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.2%

Forecasted Media industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as OKWAVE has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has OKWAVE performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3808 has a high level of non-cash earnings.

Growing Profit Margin: 3808 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 3808's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: 3808 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3808 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (32.7%).

Return on Equity

High ROE: 3808's Return on Equity (70.4%) is considered outstanding.

Financial Health

How is OKWAVE's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3808's short term assets (¥7.5B) exceed its short term liabilities (¥2.1B).

Long Term Liabilities: 3808's short term assets (¥7.5B) exceed its long term liabilities (¥455.0M).

Debt to Equity History and Analysis

Debt Level: 3808 has more cash than its total debt.

Reducing Debt: 3808's debt to equity ratio has increased from 2% to 22.5% over the past 5 years.

Debt Coverage: 3808's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 3808's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is OKWAVE 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

28.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3808's dividend (28.57%) is higher than the bottom 25% of dividend payers in the JP market (1.61%).

High Dividend: 3808's dividend (28.57%) is in the top 25% of dividend payers in the JP market (3.61%)

Stability and Growth of Payments

Stable Dividend: 3808's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3808's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.6%), 3808's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 3808 is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

15.7yrs

Average board tenure

CEO

Michio Fukuda (50 yo)

2.33yrs

Tenure

Michio Fukuda served as Vice President of OKWave since April 2001 and also served its Manager of Consumer Solutions Business Department since July 2016. Michio Fukuda served as Manager of Enterprise Soluti...

Board Members

Experienced Board: 3808's board of directors are seasoned and experienced ( 15.7 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 12%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30