Financials H2O Retailing Corporation

Equities

8242

JP3774600005

Department Stores

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
1,764 ^JPY	+0.34%		-2.38%	+15.52%

Apr. 15	H2O Retailing Corporation Reports Consolidated Sales Results for the Month of March 2024	CI
Mar. 29	H2O Retailing Corporation entered into an agreement to acquire additional 47.6% stake in Ningbo Development Co., Ltd. from Cool Japan Fund, Inc.	CI

Valuation

Fiscal Period: März	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	190,539	97,780	113,289	104,354	173,280	203,251	-	-
Enterprise Value (EV) ¹	300,229	238,251	265,638	258,527	304,996	203,251	203,251	203,251
P/E ratio	88.1 x	-7.44 x	-4.57 x	10.6 x	11 x	11 x	11.8 x	10.9 x
Yield	2.59%	5.06%	2.73%	2.95%	1.68%	1.59%	1.64%	1.73%
Capitalization / Revenue	0.21 x	0.11 x	0.15 x	0.2 x	0.28 x	0.31 x	0.3 x	0.3 x
EV / Revenue	0.21 x	0.11 x	0.15 x	0.2 x	0.28 x	0.31 x	0.3 x	0.3 x
EV / EBITDA	4.96 x	3.23 x	7.95 x	5.45 x	5.58 x	4.43 x	4.17 x	3.97 x
EV / FCF	-11.4 x	-3.9 x	-11.4 x	82.7 x	4.8 x	17.4 x	15.3 x	13.8 x
FCF Yield	-8.74%	-25.7%	-8.78%	1.21%	20.8%	5.73%	6.52%	7.23%
Price to Book	0.68 x	0.4 x	0.5 x	0.44 x	0.7 x	0.77 x	0.73 x	0.7 x
Nbr of stocks (in thousands)	123,566	123,615	123,677	123,204	116,373	115,222	-	-
Reference price ²	1,542	791.0	916.0	847.0	1,489	1,764	1,764	1,764
Announcement Date	5/14/19	5/25/20	5/11/21	5/12/22	5/11/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: März	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	926,872	897,289	739,198	518,447	628,089	657,000	669,500	680,000
EBITDA ¹	38,391	30,271	14,249	19,149	31,054	45,907	48,707	51,207
EBIT ¹	20,422	11,171	-4,438	740	11,388	25,250	28,250	30,600
Operating Margin	2.2%	1.24%	-0.6%	0.14%	1.81%	3.84%	4.22%	4.5%
Earnings before Tax (EBT) ¹	8,050	-9,337	-24,030	15,586	21,146	27,050	27,950	30,100
Net income ¹	2,162	-13,150	-24,791	9,872	16,382	18,600	17,200	18,600
Net margin	0.23%	-1.47%	-3.35%	1.9%	2.61%	2.83%	2.57%	2.74%
EPS ²	17.50	-106.4	-200.4	79.84	135.8	161.0	149.3	161.4
Free Cash Flow ¹	-16,647	-25,086	-9,944	1,262	36,077	11,650	13,250	14,700
FCF margin	-1.8%	-2.8%	-1.35%	0.24%	5.74%	1.77%	1.98%	2.16%
FCF Conversion (EBITDA)	-	-	-	6.59%	116.18%	25.38%	27.2%	28.71%
FCF Conversion (Net income)	-	-	-	12.78%	220.22%	62.63%	77.03%	79.03%
Dividend per Share ²	40.00	40.00	25.00	25.00	25.00	28.00	29.00	30.50
Announcement Date	5/14/19	5/25/20	5/11/21	5/12/22	5/11/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: März	2020 S1	2021 S1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2025 Q1	2025 Q2	2025 Q3	2025 Q4
Net sales ¹	450,710	335,614	122,735	237,020	134,283	147,144	149,352	155,073	304,425	170,471	153,193	154,813	163,730	318,543	176,921	160,536	158,500	166,000	176,600	166,900
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	6,320	-4,405	-3,104	-5,148	5,868	20	664	450	1,114	8,367	1,907	4,758	5,139	9,897	12,287	2,816	6,100	6,400	13,000	3,500
Operating Margin	1.4%	-1.31%	-2.53%	-2.17%	4.37%	0.01%	0.44%	0.29%	0.37%	4.91%	1.24%	3.07%	3.14%	3.11%	6.94%	1.75%	3.85%	3.86%	7.36%	2.1%
Earnings before Tax (EBT)	4,801	-13,474	-	10,887	4,912	-	1,175	-	4,719	11,875	-	5,516	-	10,473	15,148	-	-	-	-	-
Net income ¹	1,463	-10,102	1,808	8,085	4,852	-3,065	651	2,139	2,790	8,167	5,425	3,371	2,923	6,294	11,478	728	4,000	3,400	9,200	1,600
Net margin	0.32%	-3.01%	1.47%	3.41%	3.61%	-2.08%	0.44%	1.38%	0.92%	4.79%	3.54%	2.18%	1.79%	1.98%	6.49%	0.45%	2.52%	2.05%	5.21%	0.96%
EPS	11.84	-81.69	-	65.35	39.21	-	5.290	-	22.64	67.29	-	29.11	-	54.47	99.47	-	-	-	-	-
Dividend per Share	20.00	12.50	-	12.50	-	-	-	-	12.50	-	-	-	-	12.50	-	-	-	-	-	-
Announcement Date	10/31/19	10/30/20	11/5/21	11/5/21	2/10/22	5/12/22	8/4/22	11/2/22	11/2/22	2/6/23	5/11/23	8/2/23	11/2/23	11/2/23	2/2/24	-	-	-	-	-

¹JPY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: März	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt	109,690	140,471	152,349	154,173	131,716	-	-	-
Net Cash position	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.857 x	4.64 x	10.69 x	8.051 x	4.242 x	-	-	-
Free Cash Flow ¹	-16,647	-25,086	-9,944	1,262	36,077	11,650	13,250	14,700
ROE (net income / shareholders' equity)	0.8%	-5%	-10.5%	4.2%	6.7%	7.25%	6.4%	6.55%
ROA (Net income/ Total Assets)	3.23%	1.89%	-0.48%	0.37%	1.94%	3.9%	4.3%	4.65%
Assets ¹	67,017	-694,811	5,171,579	2,694,176	844,659	476,923	400,000	400,000
Book Value Per Share ²	2,252	1,968	1,844	1,922	2,138	2,280	2,401	2,532
Cash Flow per Share	158.0	43.40	-53.80	225.0	295.0	-	-	-
Capex ¹	32,039	35,125	22,699	25,256	31,160	34,900	31,500	31,500
Capex / Sales	3.46%	3.91%	3.07%	4.87%	4.96%	5.31%	4.71%	4.63%
Announcement Date	5/14/19	5/25/20	5/11/21	5/12/22	5/11/23	-	-	-

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 H2O Retailing Corporation

Trading Rating

Investor Rating

ESG Refinitiv

C+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

1,764 JPY

Average target price

1,800 JPY

Spread / Average Target

+2.04%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Retail - Department Stores

	1st Jan change	Capi.
H2O RETAILING CORPORATION	+15.52%	1.29B
TRENT LIMITED	+40.86%	18.35B
DILLARD'S, INC.	+11.23%	7.29B
MINISO GROUP HOLDING LIMITED	+15.83%	7.32B
FALABELLA S.A.	+13.19%	6.59B
CANADIAN TIRE CORPORATION, LIMITED	-2.96%	5.84B
ISETAN MITSUKOSHI HOLDINGS LTD.	+45.96%	5.39B
MACY'S, INC.	-8.40%	5.07B
CCOOP GROUP CO., LTD	+31.51%	5.08B
HARVEY NORMAN HOLDINGS LIMITED	+6.90%	3.65B

Retail - Department Stores