WOLVES HAND Co.,Ltd. (194A) AI Stock Analysis

• Market Cap: ¥13.28B
• Dividend Yield: N/A
• Average Volume (3M): 45.77K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.76
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 411
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Medical - Care Facilities
• EPS (TTM): N/A
• Shares Outstanding: 7,974,000
• 10 Day Avg. Volume: 82,620
• 30 Day Avg. Volume: 45,773
• PEG Ratio: 1.54
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 6.75
• 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: 75 Outperform
• Price Target: ¥1,999.00 ▲(7.65% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

WOLVES HAND Co.,Ltd. demonstrates strong financial performance with consistent revenue growth and solid cash flow management, contributing significantly to the overall score. The technical analysis supports a bullish outlook with the stock trading above key moving averages. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.

Positive Factors

Improved leverage

The sharp reduction in debt-to-equity materially lowers financial risk and interest burden, giving management flexibility to allocate cash to growth or further deleveraging. This durable capital-structure improvement supports resilience through economic cycles and enhances long-term funding optionality.

Strong free cash flow conversion

High free-cash-flow conversion shows reported profits largely translate to cash, enabling self-funded capex, maintenance, and debt reduction. Sustained FCF supports reinvestment and financial flexibility, reducing reliance on external financing and strengthening long-term operational independence.

Healthy margins & stable top line

Consistent revenue growth alongside solid gross and net margins indicates durable operating efficiency and pricing capacity in its care-facility segment. Margin stability underpins cash generation and reinvestment potential, supporting sustainable profitability over the medium term.

Negative Factors

Declining return on equity

A meaningful drop in ROE points to reduced effectiveness in generating shareholder returns from equity. If the decline persists, it may reflect lower operational leverage or capital-allocation inefficiencies, which can constrain long-term earnings growth and investor confidence.

Modest revenue growth

Low single-digit top-line growth may limit the company's ability to harness scale economics and drive faster margin expansion. In a sector where demographic tailwinds exist, subpar revenue acceleration suggests competitive or execution risks that could cap medium-term earnings upside.

No dividend income

The lack of a dividend reduces appeal to income-focused long-term investors and removes a direct cash-return mechanism. Over time, this can narrow the investor base and make total-return expectations more reliant on capital appreciation rather than predictable cash distributions.

WOLVES HAND Co.,Ltd. Business Overview & Revenue Model

Company Description

WOLVES HAND Co., Ltd. manages and operates animal hospitals in Japan. It also operates animals grooming salons and pet hotels, as well as provides seminars for veterinarians. The company was founded in 1999 and is based in Osaka, Japan.

How the Company Makes Money

WOLVES HAND Co.,Ltd. generates revenue through multiple streams including direct sales of products through its e-commerce platform and physical retail outlets. The company also engages in wholesale distribution to outdoor retailers, which contributes significantly to its revenue. Additionally, WOLVES HAND has established strategic partnerships with various outdoor brands and retailers, expanding its market reach and enhancing brand visibility. Seasonal promotions and product line expansions, particularly in high-demand categories, further bolster the company's earnings. The company may also explore revenue through sponsorships and collaborations within the outdoor community, enhancing brand loyalty and customer engagement.

WOLVES HAND Co.,Ltd. Financial Statement Overview

Summary

WOLVES HAND Co.,Ltd. exhibits a strong financial position with consistent revenue growth, solid profitability, and improved leverage. While the return on equity has decreased, the company has effectively managed its cash flows, resulting in a healthy financial outlook. The balance sheet improvements and strong cash flow generation position the company well for future growth and stability.

Income Statement

WOLVES HAND Co.,Ltd. has demonstrated consistent revenue growth over the years, with a 3.65% increase in the latest period. The company maintains healthy margins, with a gross profit margin of approximately 27% and a net profit margin of 10.85%. The EBIT and EBITDA margins are also strong, indicating efficient operations. Overall, the income statement reflects a stable and growing revenue base with solid profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from 3.14 to 0.93, indicating better leverage management. However, the return on equity has decreased from 33.29% to 21.84%, suggesting a decline in profitability relative to shareholder equity. The equity ratio stands at approximately 44.89%, reflecting a balanced capital structure. Overall, the balance sheet shows improved leverage but a slight decline in return on equity.

Cash Flow

WOLVES HAND Co.,Ltd. has shown strong free cash flow growth, with a significant increase in free cash flow in the latest period. The operating cash flow to net income ratio is 0.48, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is high at 88.29%, reflecting robust cash flow management. Overall, the cash flow statement indicates strong cash generation and effective cash management.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	5.46B	4.99B	4.65B	4.30B
Gross Profit	1.48B	1.37B	1.29B	1.22B
EBITDA	1.22B	1.16B	1.13B	865.55M
Net Income	593.00M	558.41M	506.13M	316.87M
Balance Sheet
Total Assets	6.05B	5.78B	5.45B	4.69B
Cash, Cash Equivalents and Short-Term Investments	895.00M	910.88M	690.14M	535.36M
Total Debt	2.54B	3.00B	3.23B	3.18B
Total Liabilities	3.33B	3.67B	3.93B	3.68B
Stockholders Equity	2.71B	2.11B	1.52B	1.01B
Cash Flow
Free Cash Flow	837.00M	411.90M	458.59M	-1.06B
Operating Cash Flow	948.00M	857.53M	951.32M	607.90M
Investing Cash Flow	-388.00M	-434.28M	-644.29M	-1.67B
Financing Cash Flow	-575.00M	-193.93M	-160.82M	617.34M

WOLVES HAND Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1857.00
• 50DMA: Negative
• 100DMA: Negative
• 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:194A, the sentiment is Negative. The current price of 1857 is below the 20-day moving average (MA) of 1938.55, below the 50-day MA of 1935.56, and above the 200-day MA of 1333.76, indicating a neutral trend. The MACD of -58.30 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:194A.

WOLVES HAND Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9220	81 Outperform	¥3.01B	4.69	―	2.82%	4.82%	9.78%
194A	75 Outperform	¥13.28B	25.86	―	―	―	―
2425	75 Outperform	¥3.02B	27.02	―	2.56%	-3.06%	-38.56%
7091	71 Outperform	¥5.32B	12.28	―	―	16.12%	107.25%
7129	68 Neutral	¥3.27B	-4.48	―	2.64%	4.69%	103.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2373	60 Neutral	¥5.81B	16.77	―	4.07%	6.08%	38.00%