West Holdings Corporation (1407) AI Stock Analysis

• Market Cap: ¥59.92B
• Dividend Yield: 4.25%
• Average Volume (3M): 427.95K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.57
• Revenue Growth: -6.23%
• EPS Growth: -19.98%
• Country: JP
• Employees: 369
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 115.53
• Shares Outstanding: 46,027,490
• 10 Day Avg. Volume: 638,510
• 30 Day Avg. Volume: 427,953
• PEG Ratio: 1.23
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 2.17
• P/FCF Ratio: -16.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,990.00 ▲(39.55% Upside)

The stock's overall score is driven by strong technical indicators and a balanced valuation, despite financial performance concerns due to increased debt and negative cash flow trends. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

West Holdings Corporation's integrated approach in the solar energy sector ensures a comprehensive service offering, enhancing its market position and providing a stable revenue stream through electricity sales and service contracts.

Revenue Streams

The feed-in tariff system guarantees a fixed purchase price for electricity, providing predictable and stable income, which is crucial for long-term financial planning and stability.

Profitability Improvements

Improved profitability margins reflect the company's ability to manage costs effectively and enhance operational efficiency, supporting sustainable financial health.

Negative Factors

Rising Debt Levels

Increased leverage can strain financial flexibility and pose risks to the company's ability to invest in growth opportunities, potentially impacting long-term stability.

Negative Cash Flow Trends

Negative cash flow trends highlight potential liquidity issues, which could limit the company's ability to fund operations and invest in future growth, affecting long-term viability.

Revenue Growth Instability

Inconsistent revenue growth can signal market challenges or operational inefficiencies, potentially undermining investor confidence and affecting future financial performance.

West Holdings Corporation Business Overview & Revenue Model

Company Description

West Holdings Corporation (1407) is a Japan-based company primarily engaged in the renewable energy sector. The company focuses on the development, construction, and management of solar power plants. It provides comprehensive services that include the design, construction, and maintenance of photovoltaic systems. West Holdings Corporation also engages in the sale of electricity generated from its solar power facilities, contributing to sustainable energy solutions in Japan and abroad.

How the Company Makes Money

West Holdings Corporation makes money through several key revenue streams. The primary source of revenue is the sale of electricity generated from its solar power plants. By owning and operating these facilities, the company benefits from the feed-in tariff system, which guarantees a fixed purchase price for electricity over a set period, providing a stable income. Additionally, the company earns revenue from the design, construction, and maintenance services it offers for photovoltaic systems. These services are provided to both residential and commercial clients, expanding its revenue base beyond electricity sales. Strategic partnerships and joint ventures with other energy and construction companies also play a role in enhancing its market presence and financial performance.

West Holdings Corporation Financial Statement Overview

Summary

West Holdings Corporation shows strong revenue growth and profitability improvements, but increased debt levels and negative cash flow trends pose risks. The company's financial health is promising, yet caution is advised due to rising leverage and liquidity pressures.

Income Statement

West Holdings Corporation has demonstrated consistent revenue growth with a notable increase of 15.2% from 2023 to 2024. Gross profit and EBIT margins have improved, indicating enhanced operational efficiency. The net profit margin also saw a positive trend, reflecting increased profitability. However, fluctuations in revenue growth in past years and a decrease in total revenue from 2022 to 2023 reflect potential instability.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher financial leverage which poses a potential risk. However, stockholders' equity has grown, which is a positive indicator. The equity ratio remains relatively stable, suggesting balanced asset financing. Despite this, the rising total debt and a decline in cash reserves may impact future financial flexibility.

Cash Flow

A significant decline in operating cash flow from 2023 to 2024 is concerning. The free cash flow has turned negative, indicating potential liquidity challenges. The free cash flow to net income ratio is unfavorable, showing cash generation issues. Improvement in free cash flow growth in 2023 offers some relief, but recent negative trends require attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.68B	50.39B	43.73B	67.17B	67.94B	61.95B
Gross Profit	16.18B	18.52B	15.36B	14.44B	16.66B	13.69B
EBITDA	10.99B	12.94B	10.97B	7.65B	11.33B	8.63B
Net Income	5.08B	6.76B	6.02B	4.26B	6.50B	4.42B
Balance Sheet
Total Assets	143.85B	125.90B	123.80B	101.42B	97.28B	82.30B
Cash, Cash Equivalents and Short-Term Investments	37.82B	27.68B	46.15B	27.60B	35.94B	31.00B
Total Debt	98.61B	75.33B	78.25B	59.06B	53.77B	48.64B
Total Liabilities	112.10B	92.50B	92.40B	73.87B	71.95B	61.94B
Stockholders Equity	31.47B	33.23B	31.39B	27.54B	25.32B	20.34B
Cash Flow
Free Cash Flow	0.00	-6.55B	3.42B	-10.36B	1.73B	541.00M
Operating Cash Flow	0.00	495.00M	7.34B	-4.86B	5.13B	1.33B
Investing Cash Flow	0.00	-10.42B	-5.38B	-4.67B	-4.04B	-669.00M
Financing Cash Flow	0.00	-8.56B	16.55B	2.91B	3.31B	-3.41B

West Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1426.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1407, the sentiment is Negative. The current price of 1426 is below the 20-day moving average (MA) of 1465.80, below the 50-day MA of 1653.58, and below the 200-day MA of 1575.56, indicating a neutral trend. The MACD of -45.37 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 82.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1407.

West Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1407	72 Outperform	¥59.92B	10.91	―	4.25%	-6.23%	-19.98%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9511	63 Neutral	$58.22B	9.70	4.73%	2.47%	-1.96%	33.15%
9514	60 Neutral	¥8.83B	12.27	―	2.31%	4.05%	38.64%
9519	58 Neutral	$72.21B	11.71	6.76%	―	28.85%	-9.70%
9517	51 Neutral	¥53.37B	145.21	―	1.71%	-15.80%	―
5074	48 Neutral	¥24.44B	119.94	―	1.46%	25.53%	-128.67%