West Holdings Corporation (1407) AI Stock Analysis

• Market Cap: ¥70.70B
• Dividend Yield: 4.59%
• Average Volume (3M): 427.95K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.59
• Revenue Growth: -6.23%
• EPS Growth: -19.98%
• Country: JP
• Employees: 369
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -5.29
• Shares Outstanding: 46,027,490
• 10 Day Avg. Volume: 638,510
• 30 Day Avg. Volume: 427,953
• PEG Ratio: -0.64
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 361.94
• 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
• EPS Forecast (FY): 201.5
• Revenue Forecast (FY): ¥59.60B

• Rating: 61 Neutral
• Price Target: ¥1,835.00 ▲(20.09% Upside)
• Action: Downgraded Date: 12/11/25
• Date: Action: Downgraded 12/11/25

The overall stock score is primarily influenced by the company's strong valuation metrics, including a low P/E ratio and high dividend yield. However, financial risks due to high leverage and weak cash flow conversion, along with bearish technical indicators, weigh down the score.

Positive Factors

Diversified recurring revenue model

Multiple revenue streams — system sales, installation, long-term maintenance contracts and PPAs — create durable, recurring cash flow profiles. Coupled with government incentives and strategic partnerships, this reduces reliance on one-off project sales and supports steady revenue and customer retention over time.

Strong revenue growth and margins

Sustained revenue growth (+10.7%) alongside healthy gross and net margins indicates scalable project economics and pricing power in core solar operations. Robust margins provide buffer for reinvestment into projects and R&D, supporting durable profitability if the company maintains project execution discipline.

Solid return on equity

An ROE near 15% signals management is effectively deploying shareholder equity to generate profits. Over the medium term, this suggests decent capital efficiency and the potential to fund growth or returns, assuming margins and leverage remain under control and project returns persist.

Negative Factors

High financial leverage

A debt-to-equity ratio around 2.6 denotes significant leverage for a capital-intensive renewables business. This raises refinancing and interest-rate sensitivity, limits balance sheet flexibility for new projects, and can amplify earnings volatility if project cash flows or subsidy regimes deteriorate.

Weak cash flow conversion

Very low conversion of reported earnings into operating and free cash flow constrains the company's ability to fund capex, service debt, or increase maintenance investment without external financing. For a project-focused firm, poor cash conversion undermines resilience and raises liquidity risks over months.

Earnings decline and margin pressure risk

Negative EPS growth and indications of margin compression highlight pressure on core profitability. If persistent, this reduces retained earnings for reinvestment, weakens ability to deleverage, and suggests competitive or cost pressures that could erode the company’s structural profit advantages over the medium term.

West Holdings Corporation Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

West Holdings Corporation generates revenue through multiple streams, including the sale of solar energy systems, installation services, and ongoing maintenance contracts. The company capitalizes on government incentives and subsidies for renewable energy projects, which significantly enhance its profitability. Additionally, West Holdings may engage in power purchase agreements (PPAs) with clients, securing long-term revenue through energy sales. Strategic partnerships with technology providers and local governments further bolster its market position and revenue potential, ensuring a steady income flow from both new installations and service agreements.

West Holdings Corporation Financial Statement Overview

Summary

West Holdings Corporation shows strong revenue growth and profitability with a revenue increase of 10.7% and healthy profit margins. However, high leverage with a debt-to-equity ratio of 2.60 and low cash flow conversion ratios pose financial risks.

Income Statement

West Holdings Corporation has shown a positive revenue growth rate of 10.7% in the latest year, indicating a strong upward trajectory. The gross profit margin and net profit margin are healthy at 34.48% and 11.34%, respectively, reflecting good profitability. However, there is a slight decline in margins compared to the previous year, which could be a concern if the trend continues.

Balance Sheet

The company has a high debt-to-equity ratio of 2.60, which suggests significant leverage and potential financial risk. However, the return on equity is solid at 14.79%, indicating effective use of equity to generate profits. The equity ratio is not provided, but the high leverage could pose risks if not managed carefully.

Cash Flow

The operating cash flow to net income ratio is low at 0.08, indicating potential issues in converting income into cash. The free cash flow to net income ratio is also low at 0.06, suggesting limited free cash flow relative to net income. This could impact the company's ability to reinvest or pay dividends.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	47.25B	50.39B	43.73B	67.17B	67.94B
Gross Profit	16.29B	18.52B	15.36B	14.44B	16.66B
EBITDA	11.58B	12.94B	10.97B	7.65B	11.33B
Net Income	5.36B	6.76B	6.02B	4.26B	6.50B
Balance Sheet
Total Assets	148.55B	125.90B	123.80B	101.42B	97.28B
Cash, Cash Equivalents and Short-Term Investments	35.56B	27.68B	46.15B	27.60B	35.94B
Total Debt	94.12B	75.33B	78.25B	59.06B	53.77B
Total Liabilities	112.01B	92.50B	92.40B	73.87B	71.95B
Stockholders Equity	36.22B	33.23B	31.39B	27.54B	25.32B
Cash Flow
Free Cash Flow	182.00M	-6.55B	3.42B	-10.36B	1.73B
Operating Cash Flow	3.26B	495.00M	7.34B	-4.86B	5.13B
Investing Cash Flow	-5.46B	-10.42B	-5.38B	-4.67B	-4.04B
Financing Cash Flow	10.06B	-8.56B	16.55B	2.91B	3.31B

West Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1528.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 1528 is below the 20-day moving average (MA) of 1641.77, below the 50-day MA of 1569.33, and below the 200-day MA of 1554.27, indicating a bullish trend. The MACD of 36.78 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 17.81 is Positive, 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
9513	82 Outperform	¥682.77B	6.98	7.92%	3.22%	-1.56%	9.17%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9511	63 Neutral	¥64.63B	10.32	4.73%	2.31%	-1.96%	33.15%
1407	61 Neutral	¥70.70B	13.09	―	4.59%	-6.23%	-19.98%
9514	60 Neutral	¥7.77B	13.21	―	2.29%	4.05%	38.64%
9517	55 Neutral	¥57.42B	39.99	―	1.79%	-15.80%	―
9519	53 Neutral	¥67.21B	9.24	6.76%	―	28.85%	-9.70%