West Holdings Corporation (1407) AI Stock Analysis

• Market Cap: ¥68.75B
• Dividend Yield: 3.73%
• Average Volume (3M): 167.60K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.70
• Revenue Growth: -7.18%
• EPS Growth: -18.58%
• Country: JP
• Employees: 369
• Sector: Utilities
• Sector Strength: 67
• Industry: Renewable Utilities
• EPS (TTM): 16.87
• Shares Outstanding: 46,027,490
• 10 Day Avg. Volume: 221,900
• 30 Day Avg. Volume: 167,603
• PEG Ratio: 0.46
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.61
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,962.00 ▲(16.03%Upside)

The overall stock score reflects strong technical analysis and valuation scores, indicating positive market sentiment and fair valuation. However, financial performance is a concern due to increased debt and liquidity risks, which slightly offsets the technical and valuation strengths.

West Holdings Corporation Business Overview & Revenue Model

Company Description

West Holdings Corporation (1407) is a Japanese company primarily engaged in the renewable energy sector. The company focuses on the development, construction, and management of solar power generation facilities. It offers a wide range of services including the planning, design, and maintenance of solar power systems, contributing to the sustainable energy infrastructure in Japan.

How the Company Makes Money

West Holdings Corporation makes money through the development and management of solar power generation projects. The company earns revenue by constructing and selling solar power systems and facilities, as well as through the ongoing operation and maintenance services it provides for these systems. Additionally, West Holdings benefits from selling the electricity generated by its solar power plants to utility companies and other purchasers. Key revenue streams include project development fees, construction contracts, and long-term service agreements. The company's financial performance is also supported by strategic partnerships with other firms in the renewable energy sector, as well as government incentives for clean energy production in Japan.

West Holdings Corporation Financial Statement Overview

Summary

West Holdings Corporation exhibits strong revenue growth and improved profitability. However, increased debt levels and negative cash flow trends pose financial risks, indicating caution despite potential.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	46.79B	50.39B	43.73B	67.17B	67.94B	61.95B
Gross Profit	17.19B	18.52B	15.36B	14.44B	16.66B	13.69B
EBITDA	10.56B	12.94B	10.67B	9.20B	11.60B	8.75B
Net Income	5.96B	6.76B	6.02B	4.26B	6.50B	4.42B
Balance Sheet
Total Assets	124.88B	125.90B	123.80B	101.42B	97.28B	82.30B
Cash, Cash Equivalents and Short-Term Investments	28.51B	27.68B	46.15B	27.60B	35.94B	31.00B
Total Debt	81.17B	75.33B	78.25B	59.06B	53.77B	48.64B
Total Liabilities	94.18B	92.50B	92.40B	73.87B	71.95B	61.94B
Stockholders Equity	30.52B	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: Positive
• Last Price: 1691.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1691 is above the 20-day moving average (MA) of 1599.30, above the 50-day MA of 1576.26, and below the 200-day MA of 1823.78, indicating a neutral trend. The MACD of 40.84 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	75 Outperform	¥68.75B	12.37		3.73%	-7.18%	-18.58%
Sector *	65 Neutral	¥336.27B	7.84	9.28%	2.77%	2.43%	8.54%
9514	61 Neutral	¥6.94B	11.78		2.47%	1.41%	522.92%
9517	57 Neutral	¥57.90B	25.94		1.48%	-30.11%	―
9511	56 Neutral	$50.29B	11.64	3.78%	2.15%	0.06%	80.78%
9519	54 Neutral	$68.10B	25.18	3.36%	―	56.98%	-73.47%
5074	50 Neutral	¥22.82B	25.51		2.36%	4.05%	-112.10%