Heiwa Corp
TSE:6412

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Heiwa Corp
TSE:6412
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Price: 1 814 JPY -0.17% Market Closed
Market Cap: ¥181.1B

EV/GP

8.5
Current
62%
More Expensive
vs 3-y average of 5.3

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
8.5
=
Enterprise Value
¥693.2B
/
Gross Profit
¥79.1B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
8.5
=
Enterprise Value
¥693.2B
/
Gross Profit
¥79.1B

Valuation Scenarios

Heiwa Corp is trading above its 3-year average

If EV/GP returns to its 3-Year Average (5.3), the stock would be worth ¥1 119.91 (38% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-70%
Maximum Upside
No Upside Scenarios
Average Downside
50%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 8.5 ¥1 814
0%
3-Year Average 5.3 ¥1 119.91
-38%
5-Year Average 5.4 ¥1 157.04
-36%
Industry Average 2.5 ¥538.41
-70%
Country Average 3.7 ¥794.95
-56%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Higher than 81% of companies in Japan
Percentile
81st
Based on 4 798 companies
81st percentile
8.5
Low
0.1 — 2.6
Typical Range
2.6 — 5.9
High
5.9 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 2.6
Median 3.7
70th Percentile 5.9
Max 45 735 393.8

Heiwa Corp
Glance View

In the vibrant landscape of Japanese industry, Heiwa Corp. stands as a stalwart in the niche domain of pachinko and pachislot machine manufacturing. Founded in the aftermath of World War II, Heiwa carved out its legacy by tapping into Japan's unique recreational fervor. Pachinko, a game that merges elements of slot machines and pinball, has become a cultural staple, and Heiwa has consistently capitalized on this popularity. The company skillfully blends traditional appeal with modern technological advancements to produce machines that are as much about entertainment as they are about nostalgia. Through its dexterity in design and engineering, Heiwa ensures each machine offers an engaging experience, driving strong sales in pachinko parlors throughout the country. The company's ability to adapt and innovate keeps it competitive in a market heavily tied to socio-cultural trends. Revenue streams for Heiwa are largely driven by its sales of these gaming machines, supplemented by an astute business model that includes leasing arrangements and after-sales service contracts. Building on a robust distribution network, Heiwa not only sells directly to pachinko parlors but also engages in partnerships that keep its machines in consistent demand. That's not all—Heiwa prudently diversifies its portfolio with ventures into real estate and other business ventures, ensuring that its income is balanced amidst the fluctuating gaming industry. As regulations and demographic shifts reshape the landscape, Heiwa's strategic flexibility and keen market insights position it to navigate challenges and leverage emergent opportunities, sustaining its role as a leading player in Japan's leisure sector.

Intrinsic Value
4 428.4 JPY
Undervaluation 59%
Intrinsic Value
Price ¥1 814
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