WORLD HOLDINGS CO.,LTD (2429) AI Stock Analysis

• Market Cap: ¥40.60B
• Dividend Yield: 3.7%
• Average Volume (3M): 28.66K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.78
• Revenue Growth: 11.59%
• EPS Growth: 21.11%
• Country: JP
• Employees: 54,931
• Sector: Industrials
• Sector Strength: 92
• Industry: Staffing & Employment Services
• EPS (TTM): 67.48
• Shares Outstanding: 18,006,800
• 10 Day Avg. Volume: 30,460
• 30 Day Avg. Volume: 28,660
• PEG Ratio: 0.54
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.79
• 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: ¥2,446.00
• Price Target Upside: 7.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥2,446.00 ▲(7.37%Upside)

The overall stock score of 70 reflects strong technical indicators and an attractive valuation, despite financial performance challenges. While the company benefits from robust revenue growth and a low P/E ratio, financial risks due to high leverage and negative free cash flow need to be addressed. The stock's bullish momentum and healthy dividend yield are significant positive factors.

WORLD HOLDINGS CO.,LTD Business Overview & Revenue Model

Company Description

WORLD HOLDINGS CO., LTD (2429) is a diversified Japanese company operating primarily in the areas of human resources, real estate, and information technology. The company provides staffing services, real estate solutions, and IT-related services, catering to a wide range of industries. Its core offerings include temporary staffing, employment placement, property development, and IT consulting, designed to address the dynamic needs of its clients.

How the Company Makes Money

WORLD HOLDINGS CO., LTD generates revenue through a multi-faceted approach that capitalizes on its diverse service offerings. In the human resources sector, the company earns income by providing temporary staffing and employment placement services, charging client companies for each successful placement and staffing assignment. In real estate, the company profits from property development, sales, and leasing activities, benefiting from the appreciation and rental income of its projects. The IT sector contributes to its earnings through consulting services and IT solutions, where the company charges fees for its expertise and technology implementations. Strategic partnerships with various industrial clients enhance its revenue streams by enabling the company to offer comprehensive and integrated solutions across sectors.

WORLD HOLDINGS CO.,LTD Financial Statement Overview

Summary

WORLD HOLDINGS CO., LTD demonstrates robust revenue growth but faces challenges in profitability and cash flow management. The company’s high leverage and variable return on equity suggest financial risks that need to be addressed for sustainable growth. The reliance on debt and negative free cash flow could hinder long-term financial health, necessitating strategic improvements in operational efficiency and financial management.

Income Statement

WORLD HOLDINGS CO., LTD has shown consistent revenue growth over the years, with a notable increase in total revenue from 143,571 million JPY in 2020 to 242,226 million JPY in 2024. The gross profit margin is stable, indicating effective management of production costs, while the net profit margin has fluctuated, showing room for improvement in cost control and operational efficiency. EBIT and EBITDA margins suggest solid operating performance, albeit with a decline in recent periods, highlighting potential challenges in maintaining operational profitability.

Balance Sheet

The company’s balance sheet reveals a high debt-to-equity ratio, which poses a risk in terms of financial leverage. The equity ratio is relatively low, indicating reliance on debt financing. Return on equity has been variable, reflecting fluctuating profitability. While the company has significant assets, the increase in total debt over the years suggests a need for careful financial management to avoid over-leverage.

Cash Flow

Operating cash flow is negative in recent years, pointing to challenges in generating cash from core operations. Free cash flow has been consistently negative, which could impact future investment and expansion capabilities. The company’s free cash flow to net income ratio highlights a need for improving cash generation relative to its earnings, while financing activities have been positive, indicating reliance on external funding sources.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.23B	213.74B	183.64B	154.70B	143.57B
Gross Profit	38.79B	36.32B	31.69B	26.63B	25.02B
EBITDA	10.70B	12.21B	10.09B	8.61B	7.90B
Net Income	4.98B	6.20B	5.34B	4.63B	5.91B
Balance Sheet
Total Assets	174.37B	159.20B	123.59B	97.27B	79.16B
Cash, Cash Equivalents and Short-Term Investments	42.74B	40.85B	35.09B	30.75B	22.82B
Total Debt	85.89B	78.78B	55.95B	39.20B	29.28B
Total Liabilities	126.91B	116.28B	86.40B	64.05B	49.10B
Stockholders Equity	44.67B	40.32B	35.48B	31.59B	28.64B
Cash Flow
Free Cash Flow	-3.49B	-7.80B	-6.47B	426.00M	12.57B
Operating Cash Flow	-1.44B	-3.35B	-4.76B	1.37B	13.77B
Investing Cash Flow	-2.97B	-11.48B	-5.99B	-1.78B	-1.03B
Financing Cash Flow	6.00B	20.58B	15.06B	7.99B	-6.60B

WORLD HOLDINGS CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2278.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2429, the sentiment is Positive. The current price of 2278 is above the 20-day moving average (MA) of 2247.85, above the 50-day MA of 2179.76, and above the 200-day MA of 2020.71, indicating a bullish trend. The MACD of 29.97 indicates Positive momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 51.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2429.

WORLD HOLDINGS CO.,LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4318	76 Outperform	¥42.40B	11.91		4.12%	10.22%	2.21%
7059	72 Outperform	¥42.13B	22.67		3.70%	26.09%	46.10%
6089	71 Outperform	¥21.17B	18.31		4.75%	1.07%	-58.60%
2429	70 Outperform	¥40.60B	6.42		3.70%	11.59%	21.11%
6070	68 Neutral	¥25.83B	14.17		5.49%	-7.75%	-16.92%
2475	67 Neutral	¥32.43B	10.58		4.40%	3.45%	-10.57%
Sector *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%

WORLD HOLDINGS CO.,LTD Corporate Events

WORLD HOLDINGS CO., LTD. Reports Strong Q1 FY2025 Results

WORLD HOLDINGS CO., LTD. reported increased sales and profits year-over-year for the first quarter of FY2025, with notable performance in the Human Resources and Education Business. While sales in the Real Estate Business were below expectations due to delayed property sales, profits remained on track. The Information and Telecommunications Business exceeded plans with improved profitability, and the Agricultural Park Business saw sales growth despite weather challenges.

WORLD HOLDINGS Reports Strong Q1 2025 Financial Performance

WORLD HOLDINGS CO., LTD. reported significant growth in its financial results for the first quarter of 2025, with net sales increasing by 15.8% and operating profit surging by 292.8% compared to the previous year. The company’s strategic consolidation and improved financial performance indicate a strong market position and potential positive implications for stakeholders.