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BASE

TSE:4477
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
4477
TSE
¥36B
Market Cap
  1. Home
  2. JP
  3. Software
Company description

BASE, Inc. engages in planning, development, and operation of Web services in Japan. The last earnings update was 81 days ago. More info.


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  • BASE has significant price volatility in the past 3 months.
4477 Share Price and Events
7 Day Returns
-6.6%
TSE:4477
0.4%
JP IT
0.1%
JP Market
1 Year Returns
-
TSE:4477
30.6%
JP IT
8.3%
JP Market
4477 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BASE (4477) -6.6% 32% - - - -
JP IT 0.4% 5.4% 12% 30.6% 73.8% 108.9%
JP Market 0.1% 1.1% 10% 8.3% 14% 28%
1 Year Return vs Industry and Market
  • No trading data on 4477.
  • No trading data on 4477.
Price Volatility
Industry
5yr Volatility vs Market

4477 Value

 Is BASE undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for BASE. This is due to cash flow or dividend data being unavailable. The share price is ¥1757.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BASE's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BASE's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSE:4477 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in JPY ¥-118.34
TSE:4477 Share Price ** TSE (2019-12-10) in JPY ¥1757
Japan IT Industry PE Ratio Median Figure of 136 Publicly-Listed IT Companies 20.96x
Japan Market PE Ratio Median Figure of 3,068 Publicly-Listed Companies 15.6x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BASE.

TSE:4477 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:4477 Share Price ÷ EPS (both in JPY)

= 1757 ÷ -118.34

-14.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BASE is loss making, we can't compare its value to the JP IT industry average.
  • BASE is loss making, we can't compare the value of its earnings to the Japan market.
Price based on expected Growth
Does BASE's expected growth come at a high price?
Raw Data
TSE:4477 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -14.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
100.2%per year
Japan IT Industry PEG Ratio Median Figure of 48 Publicly-Listed IT Companies 2.69x
Japan Market PEG Ratio Median Figure of 1,367 Publicly-Listed Companies 1.88x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for BASE, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on BASE's assets?
Raw Data
TSE:4477 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in JPY ¥240.70
TSE:4477 Share Price * TSE (2019-12-10) in JPY ¥1757
Japan IT Industry PB Ratio Median Figure of 158 Publicly-Listed IT Companies 2.73x
Japan Market PB Ratio Median Figure of 3,527 Publicly-Listed Companies 1.13x
TSE:4477 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:4477 Share Price ÷ Book Value per Share (both in JPY)

= 1757 ÷ 240.70

7.3x

* Primary Listing of BASE.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BASE is overvalued based on assets compared to the JP IT industry average.
X
Value checks
We assess BASE's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. BASE has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

4477 Future Performance

 How is BASE expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
100.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BASE expected to grow at an attractive rate?
  • BASE's earnings growth is expected to exceed the low risk savings rate of -0.1%.
Growth vs Market Checks
  • BASE's earnings growth is expected to exceed the Japan market average.
  • BASE's revenue growth is expected to exceed the Japan market average.
Annual Growth Rates Comparison
Raw Data
TSE:4477 Future Growth Rates Data Sources
Data Point Source Value (per year)
TSE:4477 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 100.2%
TSE:4477 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 37%
Japan IT Industry Earnings Growth Rate Market Cap Weighted Average 8.7%
Japan IT Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Japan Market Earnings Growth Rate Market Cap Weighted Average 9.4%
Japan Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSE:4477 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSE:4477 Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 7,505 1,024 2
2020-12-31 5,426 281 2
2019-12-31 3,710 -550 2
TSE:4477 Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2018-12-31 2,352 -854

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BASE's earnings are expected to grow significantly at over 20% yearly.
  • BASE's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSE:4477 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from BASE Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSE:4477 Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 52.90 77.39 28.40 2.00
2020-12-31 14.48 18.66 10.30 2.00
2019-12-31 -46.80 -46.00 -47.60 2.00
TSE:4477 Past Financials Data
Date (Data in JPY Millions) EPS *
2018-12-31 -118.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if BASE will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess BASE's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Japan market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Japan market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BASE has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

4477 Past Performance

  How has BASE performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BASE's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BASE does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare BASE's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare BASE's 1-year growth to the JP IT industry average as it is not currently profitable.
Earnings and Revenue History
BASE's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BASE Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSE:4477 Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,352.00 -854.00 2,187.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if BASE has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if BASE has efficiently used its assets last year compared to the JP IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if BASE improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess BASE's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BASE has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

4477 Health

 How is BASE's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BASE's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BASE is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BASE's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of BASE's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • BASE has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BASE Company Filings, last reported 11 months ago.

TSE:4477 Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,737.00 0.00 4,408.00
  • BASE has no debt.
  • BASE has not taken on any debt in the past 5 years.
  • BASE has no debt, it does not need to be covered by operating cash flow.
  • BASE has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess BASE's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BASE has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

4477 Dividends

 What is BASE's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from BASE dividends. Estimated to be 0% next year.
If you bought ¥2,000 of BASE shares you are expected to receive ¥0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate BASE's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate BASE's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSE:4477 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Japan IT Industry Average Dividend Yield Market Cap Weighted Average of 108 Stocks 1.4%
Japan Market Average Dividend Yield Market Cap Weighted Average of 2973 Stocks 2.3%
Japan Minimum Threshold Dividend Yield 10th Percentile 0.8%
Japan Bottom 25% Dividend Yield 25th Percentile 1.3%
Japan Top 25% Dividend Yield 75th Percentile 2.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSE:4477 Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as BASE has not reported any payouts.
  • Unable to verify if BASE's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of BASE's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as BASE has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of BASE's dividends in 3 years as they are not expected to pay a notable one for Japan.
X
Income/ dividend checks
We assess BASE's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BASE afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BASE has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

4477 Management

 What is the CEO of BASE's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yuta Tsuruoka
AGE 20
CEO Bio

CEO Compensation
  • Insufficient data for Yuta to compare compensation growth.
  • Insufficient data for Yuta to establish whether their remuneration is reasonable compared to companies of similar size in Japan.
Management Team

Yuta Tsuruoka

TITLE
CEO & President
AGE
20
Board of Directors
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (¥) Value (¥)
X
Management checks
We assess BASE's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BASE has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

4477 News

Simply Wall St News

4477 Company Info

Description

BASE, Inc. engages in planning, development, and operation of Web services in Japan. The company offers an online shop opening service and a smartphone shopping app under the BASE name; and YELL BANK, a financial service that allows shop owners who use the online shop opening service BASE to raise funds. It also provides PAY.JP, an online service for developers for implementing credit card payment to Web services and e-commerce; and PAY ID, an ID-type payment service for purchasers. The company was founded in 2012 and is headquartered in Tokyo, Japan.

Details
Name: BASE, Inc.
4477
Exchange: TSE
Founded: 2012
¥35,845,962,600
20,401,800
Website: http://binc.jp
Address: BASE, Inc.
Roppongi Grand Tower,
37th Floor,
Tokyo,
106-6237,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 4477 Common Stock The Tokyo Stock Exchange JP JPY 25. Oct 2019
Number of employees
Current staff
Staff numbers
0
BASE employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/10 16:29
End of day share price update: 2019/12/10 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/09/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.