company background image
1407

West Holdings TSE:1407 Stock Report

Last Price

JP¥4.36k

Market Cap

JP¥177.3b

7D

3.2%

1Y

-2.5%

Updated

10 Aug, 2022

Data

Company Financials +
1407 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance1/6
Financial Health4/6
Dividends2/6

1407 Stock Overview

West Holdings Corporation engages in the renewable energy business.

West Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for West Holdings
Historical stock prices
Current Share PriceJP¥4,360.00
52 Week HighJP¥6,940.00
52 Week LowJP¥3,085.00
Beta0.53
1 Month Change-0.23%
3 Month Change-6.44%
1 Year Change-2.46%
3 Year Change523.91%
5 Year Change819.90%
Change since IPO2,350.69%

Recent News & Updates

Shareholder Returns

1407JP Renewable EnergyJP Market
7D3.2%-0.6%0.3%
1Y-2.5%-11.3%-1.8%

Return vs Industry: 1407 exceeded the JP Renewable Energy industry which returned -11.3% over the past year.

Return vs Market: 1407 matched the JP Market which returned -1.8% over the past year.

Price Volatility

Is 1407's price volatile compared to industry and market?
1407 volatility
1407 Average Weekly Movement8.7%
Renewable Energy Industry Average Movement7.1%
Market Average Movement3.9%
10% most volatile stocks in JP Market8.0%
10% least volatile stocks in JP Market2.1%

Stable Share Price: 1407 is more volatile than 90% of JP stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 1407's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

FoundedEmployeesCEOWebsite
1981346Takashi Kikkawahttps://www.west-gr.co.jp

West Holdings Corporation engages in the renewable energy business. It is involved in the installation of residential and industrial solar power generation systems; ground-based and roof-based installations for factories; construction and sales of public and industrial photovoltaic power generation systems; solar power generation and sales activities; management and maintenance business for photovoltaic power generation systems and related equipment; and energy saving services. The company was founded in 1981 and is headquartered in Tokyo, Japan.

West Holdings Fundamentals Summary

How do West Holdings's earnings and revenue compare to its market cap?
1407 fundamental statistics
Market CapJP¥177.31b
Earnings (TTM)JP¥4.09b
Revenue (TTM)JP¥77.98b

43.4x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1407 income statement (TTM)
RevenueJP¥77.98b
Cost of RevenueJP¥63.51b
Gross ProfitJP¥14.47b
Other ExpensesJP¥10.38b
EarningsJP¥4.09b

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)100.52
Gross Margin18.56%
Net Profit Margin5.24%
Debt/Equity Ratio267.6%

How did 1407 perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

50%

Payout Ratio

Does 1407 pay a reliable dividends?

See 1407 dividend history and benchmarks
When do you need to buy 1407 by to receive an upcoming dividend?
West Holdings dividend dates
Ex Dividend DateAug 30 2022
Dividend Pay DateNov 29 2022
Days until Ex dividend19 days
Days until Dividend pay date110 days

Does 1407 pay a reliable dividends?

See 1407 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 1407 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1407?

Other financial metrics that can be useful for relative valuation.

1407 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/Revenue2.7x
Enterprise Value/EBITDA23.1x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does 1407's PE Ratio compare to its peers?

1407 PE Ratio vs Peers
The above table shows the PE ratio for 1407 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.6x
9519 RENOVA
43.5x6.7%JP¥213.7b
9517 eREXLtd
15.4x3.5%JP¥148.8b
9514 EF-ON
11.2x30.1%JP¥11.8b
3498 Kasumigaseki CapitalLtd
40.4xn/aJP¥21.3b
1407 West Holdings
43.4x40.7%JP¥177.3b

Price-To-Earnings vs Peers: 1407 is expensive based on its Price-To-Earnings Ratio (43.4x) compared to the peer average (27.6x).


Price to Earnings Ratio vs Industry

How does 1407's PE Ratio compare vs other companies in the Asian Renewable Energy Industry?

Price-To-Earnings vs Industry: 1407 is expensive based on its Price-To-Earnings Ratio (43.4x) compared to the JP Renewable Energy industry average (15.2x)


Price to Earnings Ratio vs Fair Ratio

What is 1407'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.

1407 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.4x
Fair PE Ratio28.3x

Price-To-Earnings vs Fair Ratio: 1407 is expensive based on its Price-To-Earnings Ratio (43.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.3x).


Share Price vs Fair Value

What is the Fair Price of 1407 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1407 (¥4360) is trading below our estimate of fair value (¥9768.56)

Significantly Below Fair Value: 1407 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is West Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


40.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1407's forecast earnings growth (40.7% per year) is above the savings rate (0.04%).

Earnings vs Market: 1407's earnings (40.7% per year) are forecast to grow faster than the JP market (8.3% per year).

High Growth Earnings: 1407's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1407's revenue (16.4% per year) is forecast to grow faster than the JP market (4.4% per year).

High Growth Revenue: 1407's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1407's Return on Equity is forecast to be high in 3 years time (27.9%)


Discover growth companies

Past Performance

How has West Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1407 has a large one-off loss of ¥1.5B impacting its May 31 2022 financial results.

Growing Profit Margin: 1407's current net profit margins (5.2%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 1407's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: 1407's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1407 had negative earnings growth (-18.4%) over the past year, making it difficult to compare to the Renewable Energy industry average (53.6%).


Return on Equity

High ROE: 1407's Return on Equity (17.2%) is considered low.


Discover strong past performing companies

Financial Health

How is West Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1407's short term assets (¥79.8B) exceed its short term liabilities (¥31.1B).

Long Term Liabilities: 1407's short term assets (¥79.8B) exceed its long term liabilities (¥45.4B).


Debt to Equity History and Analysis

Debt Level: 1407's net debt to equity ratio (143.7%) is considered high.

Reducing Debt: 1407's debt to equity ratio has reduced from 313.9% to 267.6% over the past 5 years.

Debt Coverage: 1407's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1407's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is West Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.26%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 10 2022Ex Dividend DateAug 30 2022Dividend Pay DateNov 29 202291 days from Ex DividendBuy in the next 19 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1407's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 1407's dividend (1.26%) is low compared to the top 25% of dividend payers in the JP market (3.63%).


Stability and Growth of Payments

Stable Dividend: 1407's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1407's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.7%), 1407's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 1407 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

9.7yrs

Average board tenure


CEO

Takashi Kikkawa (72 yo)

no data

Tenure

JP¥113,000,000

Compensation

Mr. Takashi Kikkawa serves as the Chief Executive Officer of West Holdings Corporation Mr. Kikkawa served as President of Ligitek Japan Co., Ltd. since October 2010. Mr. Kikkawa established Nishi Nihon Kan...


CEO Compensation Analysis

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

Compensation vs Earnings: Takashi's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 1407's board of directors are considered experienced (9.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

West Holdings Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: West Holdings Corporation
  • Ticker: 1407
  • Exchange: TSE
  • Founded: 1981
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Implied Market Cap: JP¥177.309b
  • Shares outstanding: 40.67m
  • Website: https://www.west-gr.co.jp

Number of Employees


Location

  • West Holdings Corporation
  • Tokyo Opera City Building
  • 32 Floor
  • Tokyo
  • 163-1432
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/05/31
Annual Earnings2021/08/31


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.