Watanabe Sato Co., Ltd. (1807) AI Stock Analysis

• Market Cap: ¥10.26B
• Dividend Yield: 4.63%
• Average Volume (3M): 8.58K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.62
• Revenue Growth: 3.49%
• EPS Growth: 9.50%
• Country: JP
• Employees: 497
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -13.20
• Shares Outstanding: 6,391,400
• 10 Day Avg. Volume: 2,360
• 30 Day Avg. Volume: 8,576
• PEG Ratio: -0.43
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -2.28
• 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: ¥1,924.00
• Price Target Upside: 11.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,924.00 ▲(11.47% Upside)

The stock's overall score is driven by its strong valuation, with a low P/E ratio and high dividend yield offering potential value. Financial performance is stable but faces challenges in revenue growth and cash flow. Technical analysis suggests neutral to bearish sentiment, with potential oversold conditions.

Watanabe Sato Co., Ltd. Business Overview & Revenue Model

Company Description

Watanabe Sato Co., Ltd. (1807) is a prominent Japanese company that operates primarily in the textile and chemical sectors. Founded in the late 19th century, the company has evolved to manufacture a wide range of products, including high-quality fabrics, synthetic fibers, and chemical products utilized in various industries such as fashion, automotive, and construction. With a commitment to innovation and sustainability, Watanabe Sato has established itself as a key player in the materials market, providing solutions that cater to both domestic and international clients.

How the Company Makes Money

Watanabe Sato Co., Ltd. generates revenue through multiple key streams. The primary source of income comes from the sale of its textile products, including fabrics and synthetic fibers, which are sold to various industries including apparel and automotive. Additionally, the company profits from its chemical products, which are used in manufacturing processes across different sectors. Strategic partnerships with major brands and manufacturers enhance its market reach and drive sales. The company also invests in research and development to innovate its offerings, which creates new revenue opportunities. Exporting its products internationally further diversifies its income sources, allowing Watanabe Sato to capture a larger market share.

Watanabe Sato Co., Ltd. Financial Statement Overview

Summary

Watanabe Sato Co., Ltd. exhibits a stable financial position with a strong balance sheet and moderate profitability. However, challenges in revenue growth and cash flow generation could impact future financial flexibility.

Income Statement

Watanabe Sato Co., Ltd. has demonstrated a mixed performance in terms of profitability and growth. The gross profit margin has been relatively stable, but the net profit margin has shown some decline over the years. Revenue growth has been inconsistent, with some years of contraction. The EBIT and EBITDA margins indicate moderate operational efficiency but have decreased in recent periods.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. Return on equity has been positive, reflecting effective use of shareholder funds. The equity ratio is healthy, suggesting a solid capital structure with substantial equity backing the assets.

Cash Flow

Cash flow analysis reveals some challenges, particularly in free cash flow generation, which has been negative in recent periods. Operating cash flow has fluctuated, impacting the company's ability to consistently generate cash from operations. The free cash flow to net income ratio indicates potential issues in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.52B	40.42B	38.40B	34.66B	37.45B	39.92B
Gross Profit	3.59B	3.46B	4.06B	2.77B	4.56B	4.71B
EBITDA	2.23B	1.98B	2.45B	1.31B	3.10B	3.33B
Net Income	1.08B	891.64M	1.20B	446.67M	1.73B	1.84B
Balance Sheet
Total Assets	30.41B	35.43B	35.13B	32.28B	32.63B	32.38B
Cash, Cash Equivalents and Short-Term Investments	5.33B	5.03B	7.62B	4.80B	6.00B	4.19B
Total Debt	127.07M	2.80B	40.87M	160.30M	216.14M	312.63M
Total Liabilities	9.21B	14.01B	13.99B	12.92B	13.53B	14.43B
Stockholders Equity	21.11B	21.34B	21.06B	19.28B	19.03B	17.87B
Cash Flow
Free Cash Flow	0.00	-4.49B	3.03B	-271.32M	2.61B	1.75B
Operating Cash Flow	0.00	-3.96B	3.48B	187.68M	3.28B	2.06B
Investing Cash Flow	0.00	-625.68M	-437.98M	-929.69M	-799.90M	-382.50M
Financing Cash Flow	0.00	2.00B	-412.42M	-455.77M	-679.72M	-1.33B

Watanabe Sato Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1726.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1807, the sentiment is Positive. The current price of 1726 is above the 20-day moving average (MA) of 1725.03, above the 50-day MA of 1723.90, and above the 200-day MA of 1623.72, indicating a bullish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 29.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1807.

Watanabe Sato Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1850	80 Outperform	¥15.37B	8.08	―	1.15%	23.15%	46.68%
1798	75 Outperform	¥10.62B	4.92	―	2.07%	24.64%	35.00%
1807	73 Outperform	¥10.26B	9.97	―	4.63%	3.49%	9.50%
1966	70 Outperform	¥11.90B	5.82	―	4.38%	7.07%	-0.67%
1853	68 Neutral	¥11.17B	10.22	―	4.24%	-4.01%	42.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1848	54 Neutral	¥9.19B	3.60	―	2.55%	12.27%	682.78%