West Holdings Corporation (1407) AI Stock Analysis

• Market Cap: ¥71.14B
• Dividend Yield: 4.59%
• Average Volume (3M): 427.95K
• Price to Earnings (P/E): ―
• 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: 318.23
• 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: 68 Neutral
• Price Target: ¥2,039.00 ▲(33.44% Upside)
• Action: Reiterated Date: 03/15/26
• Date: Action: Reiterated 03/15/26

The score is driven primarily by solid financial performance (growth and margins) but tempered by high leverage and weak cash flow conversion. Technicals are supportive with a clear uptrend, while valuation is mixed due to a strong dividend yield but a negative P/E.

Positive Factors

Revenue & Margins

Sustained double-digit revenue growth with healthy gross (34.48%) and net (11.34%) margins indicates the business can scale sales while retaining profitability. This supports durable cash generation, operational resilience and capacity to fund project investments over the medium term.

Return on Equity

A 14.79% ROE signals management’s ability to generate solid returns on shareholders' capital, reflecting operational efficiency and effective capital allocation. Over time this supports shareholder value creation and the potential to fund dividends or reinvestment if cash conversion improves.

Industry Structural Tailwinds

Operating in Renewable Utilities provides structural demand from the energy transition and policy support. These sector dynamics tend to produce long-term project pipelines, stable contracted revenues, and opportunities to scale installations and services across investment cycles.

Negative Factors

High Leverage

A debt-to-equity of 2.60 denotes significant leverage for a capital-intensive utility and raises interest expense and refinancing vulnerability. High leverage constrains strategic flexibility, increases sensitivity to rate moves, and can limit ability to pursue growth without raising costly capital.

Weak Cash Conversion

Operating cash flow and free cash flow convert only a small fraction of reported earnings, indicating structural cash generation issues. Poor cash conversion limits self-funding for capex and dividends, raises dependence on external financing, and amplifies risk if credit conditions tighten.

Margin Erosion Risk

A noted slight decline in margins versus the prior year suggests emerging cost pressures or pricing headwinds. If persistent, margin erosion would reduce free cash flow and profitability, worsening the challenge of servicing debt and funding reinvestment in a capital-intensive business.

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.

West Holdings Corporation Financial Statement Overview

Summary

Strong revenue growth (10.7%) and healthy profitability (gross margin 34.48%, net margin 11.34%) support the score, but high leverage (debt-to-equity 2.60) and weak cash conversion (operating cash flow to net income 0.08; free cash flow to net income 0.06) are meaningful 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	16.14B	18.52B	15.36B	14.44B	16.66B
EBITDA	11.46B	12.95B	10.69B	9.22B	11.62B
Net Income	5.36B	6.76B	6.02B	4.26B	6.50B
Balance Sheet
Total Assets	148.94B	126.15B	124.05B	101.42B	97.28B
Cash, Cash Equivalents and Short-Term Investments	35.76B	27.88B	46.35B	27.60B	35.94B
Total Debt	94.31B	75.53B	78.28B	59.10B	53.84B
Total Liabilities	112.40B	92.75B	92.64B	73.86B	71.94B
Stockholders Equity	36.22B	33.23B	31.39B	27.54B	25.32B
Cash Flow
Free Cash Flow	207.00M	-6.53B	3.43B	-10.02B	1.87B
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: Neutral

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 1706.34, below the 50-day MA of 1635.44, and below the 200-day MA of 1570.93, indicating a bullish trend. The MACD of 53.14 indicates Negative momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 56.38 is Neutral, 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	¥733.47B	6.68	7.17%	3.22%	-1.56%	9.17%
1407	68 Neutral	¥71.14B	-69.59	―	4.59%	-6.23%	-19.98%
9517	66 Neutral	¥75.68B	5.57	―	1.79%	-15.80%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9511	63 Neutral	¥55.83B	3.56	4.73%	2.31%	-1.96%	33.15%
9514	60 Neutral	¥8.03B	11.52	―	2.29%	4.05%	38.64%
9519	53 Neutral	¥68.85B	48.38	7.71%	―	28.85%	-9.70%