Financials ARE Holdings, Inc.

Equities

5857

JP3116700000

Environmental Services & Equipment

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-05-10 EDT			5-day change	1st Jan Change
1,984 ^JPY	+0.40%		+0.25%	+1.69%

05-03	ARE Holdings Buys Back 57 Million Yen of Shares Under New Mandate	MT
04-26	ARE Holdings' Attributable Profit More Than Doubles in Fiscal Year Ended March	MT

Valuation

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	78,776	89,046	166,681	178,127	154,973	152,004	-	-
Enterprise Value (EV) ¹	126,276	192,939	261,496	322,925	281,382	148,075	152,004	152,004
P/E ratio	8.78 x	9.04 x	3.24 x	9.51 x	14.3 x	6.05 x	11.7 x	11.1 x
Yield	5.99%	5.74%	4.01%	3.97%	4.45%	4.66%	4.03%	4.03%
Capitalization / Revenue	0.61 x	0.66 x	1.01 x	0.93 x	0.53 x	0.46 x	0.41 x	0.4 x
EV / Revenue	0.61 x	0.66 x	1.01 x	0.93 x	0.53 x	0.46 x	0.41 x	0.4 x
EV / EBITDA	4.69 x	3.88 x	6.03 x	6.11 x	6.86 x	9.26 x	6.91 x	6.61 x
EV / FCF	-	-1.39 x	-4.61 x	54.3 x	-	-131 x	-13.3 x	18.4 x
FCF Yield	-	-72.2%	-21.7%	1.84%	-	-0.76%	-7.5%	5.44%
Price to Book	1.16 x	1.29 x	0.85 x	1.69 x	1.45 x	1.17 x	1.15 x	1.08 x
Nbr of stocks (in thousands)	78,698	78,698	78,697	78,643	76,643	76,615	-	-
Reference price ²	1,001	1,132	2,118	2,265	2,022	1,984	1,984	1,984
Announcement Date	19-05-08	20-04-30	21-04-27	22-04-27	23-04-27	24-04-25	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: März	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	128,669	135,563	164,776	192,442	292,449	322,253	370,500	381,000
EBITDA ¹	16,798	22,946	27,664	29,135	22,576	15,999	22,000	23,000
EBIT ¹	14,478	20,119	25,126	26,446	19,263	12,367	18,050	19,500
Operating Margin	11.25%	14.84%	15.25%	13.74%	6.59%	3.84%	4.87%	5.12%
Earnings before Tax (EBT) ¹	13,405	17,650	26,136	26,372	16,052	36,061	17,850	19,500
Net income ¹	9,000	9,846	25,725	18,735	10,929	24,490	13,150	14,200
Net margin	6.99%	7.26%	15.61%	9.74%	3.74%	7.6%	3.55%	3.73%
EPS ²	114.1	125.1	653.8	238.1	141.2	319.5	169.6	178.8
Free Cash Flow ¹	-	-64,278	-36,153	3,283	-	-1,160	-11,398	8,274
FCF margin	-	-47.42%	-21.94%	1.71%	-	-0.37%	-3.08%	2.17%
FCF Conversion (EBITDA)	-	-	-	11.27%	-	-	-	35.97%
FCF Conversion (Net income)	-	-	-	17.52%	-	-	-	58.27%
Dividend per Share ²	60.00	65.00	85.00	90.00	90.00	90.00	80.00	80.00
Announcement Date	19-05-08	20-04-30	21-04-27	22-04-27	23-04-27	24-04-25	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: March	2020 S1	2021 S1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2024 S2	2025 Q1	2025 Q2	2025 S1	2025 Q3	2025 Q4	2025 S2
Net sales ¹	70,152	79,126	46,437	96,861	47,626	47,955	95,581	59,749	72,904	132,653	73,174	86,622	159,796	66,523	85,373	151,896	83,236	87,121	170,357	90,000	90,000	180,000	90,000	100,000	190,000
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	8,505	11,828	6,765	13,698	5,620	7,128	12,748	5,691	5,802	11,493	6,013	1,757	7,770	3,050	3,931	6,981	3,061	4,381	7,442	4,000	4,500	8,500	4,500	5,000	9,500
Operating Margin	12.12%	14.95%	14.57%	14.14%	11.8%	14.86%	13.34%	9.52%	7.96%	8.66%	8.22%	2.03%	4.86%	4.58%	4.6%	4.6%	3.68%	5.03%	4.37%	4.44%	5%	4.72%	5%	5%	5%
Earnings before Tax (EBT)	7,225	11,876	-	13,642	5,629	-	-	6,108	-	10,241	4,139	-	-	3,137	-	7,193	2,911	-	-	-	-	-	-	-	-
Net income	4,506	8,233	-	9,653	3,914	-	-	4,268	-	7,293	2,881	-	-	2,396	-	5,259	1,838	-	-	-	-	-	-	-	-
Net margin	6.42%	10.4%	-	9.97%	8.22%	-	-	7.14%	-	5.5%	3.94%	-	-	3.6%	-	3.46%	2.21%	-	-	-	-	-	-	-	-
EPS	57.26	104.6	-	122.6	49.78	-	-	54.27	-	93.30	37.71	-	-	31.26	-	68.62	23.98	-	-	-	-	-	-	-	-
Dividend per Share	30.00	40.00	-	45.00	-	-	-	-	-	45.00	-	-	-	-	-	45.00	-	-	-	-	-	-	-	-	-
Announcement Date	19-10-29	20-10-28	21-10-27	21-10-27	22-01-28	22-04-27	22-04-27	22-07-28	22-10-27	22-10-27	23-01-31	23-04-27	23-04-27	23-07-27	23-10-26	23-10-26	24-01-31	24-04-25	24-04-25	-	-	-	-	-	-

¹JPY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt	47,500	103,893	94,815	144,798	126,409	-	-	-
Net Cash position	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.828 x	4.528 x	3.427 x	4.97 x	5.599 x	-	-	-
Free Cash Flow ¹	-	-64,278	-36,153	3,283	-	-1,160	-11,398	8,274
ROE (net income / shareholders' equity)	13.6%	14.4%	30.8%	18.5%	10.3%	21%	-	-
ROA (Net income/ Total Assets)	9.19%	9.05%	11%	9.71%	5.48%	4.1%	-	-
Assets ¹	97,941	108,844	233,648	192,944	199,433	596,627	-	-
Book Value Per Share ²	862.0	879.0	2,488	1,337	1,396	1,650	1,730	1,829
Cash Flow per Share	143.0	161.0	718.0	272.0	184.0	367.0	-	-
Capex ¹	5,552	3,960	5,314	8,403	4,946	12,500	4,000	4,000
Capex / Sales	4.31%	2.92%	3.22%	4.37%	1.69%	3.97%	1.08%	1.05%
Announcement Date	19-05-08	20-04-30	21-04-27	22-04-27	23-04-27	24-04-25	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for ARE Holdings, Inc.

Trading Rating

Investor Rating

ESG Refinitiv

C+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

1,984 JPY

Average target price

2,200 JPY

Spread / Average Target

+10.89%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Environmental Services & Equipment

	1st Jan change	Capi.
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KURITA WATER INDUSTRIES LTD.	+22.25%	4.86B
CECEP ENVIRONMENTAL PROTECTION CO., LTD.	-2.71%	3.09B

Other Environmental Services & Equipment