Will Smart Co. Ltd. (175A) AI Stock Analysis

• Market Cap: ¥1.05B
• Dividend Yield: N/A
• Average Volume (3M): 20.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 1,471,400
• 10 Day Avg. Volume: 43,550
• 30 Day Avg. Volume: 20,263
• PEG Ratio: <0.01
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 1.60
• P/FCF Ratio: -5.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ¥806.00 ▼(-24.60% Downside)
• Action: Downgraded Date: 12/11/25
• Date: Action: Downgraded 12/11/25

The overall stock score is heavily influenced by the company's poor financial performance, with significant revenue declines and negative profitability. Technical analysis also indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. The valuation is further weakened by a negative P/E ratio and lack of dividend yield, making the stock unattractive at this time.

Positive Factors

Business Model Strength

The direct-to-consumer model enhances margin sustainability by reducing intermediary costs, supporting long-term profitability and competitive positioning.

Recurring Revenue Streams

Subscription services provide a stable revenue base, improving cash flow predictability and supporting ongoing investment in innovation and growth.

Strategic Partnerships

Strategic partnerships expand market reach and product integration, enhancing sales channels and supporting long-term revenue growth.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Negative Profit Margins

Sustained negative profit margins can hinder reinvestment in the business, affecting innovation and competitive positioning over time.

Cash Flow Challenges

Negative cash flow limits the company's ability to fund operations and growth initiatives, posing a risk to financial stability and strategic flexibility.

Will Smart Co. Ltd. Business Overview & Revenue Model

Company Description

Will Smart Co. Ltd. (175A) is a technology-driven company specializing in smart home solutions and IoT (Internet of Things) devices. The company operates in the consumer electronics sector, focusing on innovative products designed to enhance home automation, security, and energy efficiency. Core offerings include smart lighting systems, intelligent security cameras, and energy management tools that seamlessly integrate with mobile applications, providing users with enhanced control and monitoring capabilities.

How the Company Makes Money

Will Smart Co. Ltd. generates revenue through multiple streams, primarily by selling its smart home products directly to consumers via online platforms and retail partnerships. The company employs a direct-to-consumer sales model, allowing it to maintain higher margins. Additionally, recurring revenue is generated through subscription services for premium features, such as cloud storage for security footage and enhanced security monitoring services. Strategic partnerships with home builders and technology integrators further amplify sales, as these collaborations allow the company to bundle its products with new home constructions and renovations. Furthermore, Will Smart Co. Ltd. invests in research and development to continuously innovate its product line, ensuring competitive advantage and sustained customer interest.

Will Smart Co. Ltd. Financial Statement Overview

Summary

The financial performance is severely challenged, with declining revenue and negative profit margins. The income statement shows a 37% revenue decline and deeply negative net profit margins. The balance sheet indicates increasing leverage and negative returns on equity, while cash flow is constrained with negative operating and free cash flow.

Income Statement

The income statement reveals significant challenges, with declining revenue and negative profit margins. The company experienced a revenue decline of 37% in the latest period, and net profit margins are deeply negative, indicating substantial losses. Gross profit margin has also decreased over time, reflecting cost pressures or pricing challenges. Overall, the income statement reflects a struggling financial performance with declining revenue and profitability.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio has increased, indicating higher leverage, but remains within a manageable range. The equity ratio suggests a reasonable level of equity financing. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The balance sheet indicates moderate stability but highlights concerns about profitability and increasing leverage.

Cash Flow

The cash flow statement highlights significant cash flow challenges. Operating cash flow is negative, and free cash flow has also declined, indicating cash constraints. The free cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The company faces difficulties in generating cash flow, which could impact its ability to fund operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Mar 2022
Income Statement
Total Revenue	447.81M	683.71M	1.09B	813.12M	1.10B
Gross Profit	194.92M	193.99M	455.71M	224.26M	351.74M
EBITDA	-35.54M	-238.68M	98.75M	-105.82M	25.38M
Net Income	-60.17M	-298.62M	27.10M	-287.33M	-33.10M
Balance Sheet
Total Assets	656.88M	656.88M	775.60M	789.60M	1.15B
Cash, Cash Equivalents and Short-Term Investments	108.05M	108.05M	147.36M	64.23M	136.39M
Total Debt	156.88M	156.88M	313.18M	131.99M	151.23M
Total Liabilities	246.70M	246.70M	463.18M	504.99M	483.93M
Stockholders Equity	410.18M	410.18M	312.42M	284.61M	662.94M
Cash Flow
Free Cash Flow	-23.31M	-191.26M	-16.17M	122.92M	-176.91M
Operating Cash Flow	3.17M	-182.32M	6.05M	134.88M	-169.76M
Investing Cash Flow	-106.51M	-14.82M	-102.20M	-80.19M	-66.28M
Financing Cash Flow	223.84M	157.84M	179.28M	-126.85M	144.65M

Will Smart Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1069.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:175A, the sentiment is Negative. The current price of 1069 is above the 20-day moving average (MA) of 759.50, above the 50-day MA of 810.28, and above the 200-day MA of 961.90, indicating a bearish trend. The MACD of -22.58 indicates Positive momentum. The RSI at 30.68 is Neutral, neither overbought nor oversold. The STOCH value of 25.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:175A.

Will Smart Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4381	54 Neutral	¥1.57B	-13.60	―	―	-14.58%	54.57%
6786	52 Neutral	¥1.34B	34.86	―	―	4.53%	58.34%
3787	50 Neutral	¥1.61B	3.16	―	―	-1.34%	17.01%
3910	44 Neutral	¥1.62B	7.76	―	1.35%	9.45%	―
175A	38 Underperform	¥1.05B	-1.67	―	―	―	―