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

• Market Cap: ¥12.54B
• 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: 1.51
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 6.63
• 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: ¥1,888.00 ▲(1.67% 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

Free Cash Flow Strength

A free cash flow to net income ratio of 88.29% signals sustainable cash conversion from operations. Durable FCF supports debt reduction, capital expenditures, and selective reinvestment or M&A without relying on external financing, preserving financial flexibility over the next 2–6 months.

Improved Leverage

Reducing debt-to-equity from 3.14 to 0.93 materially lowers financial risk and interest burden. This stronger capital structure increases resilience to revenue volatility, enables strategic investments, and provides enduring capacity to fund operations or growth initiatives without destabilizing the balance sheet.

Healthy Profit Margins

Sustained gross and net margins indicate structural operational efficiency in its medical care facilities business. Strong margins support durable cash generation and provide a buffer against cost inflation, helping the company maintain profitability and fund reinvestment over the medium term.

Negative Factors

Declining Return on Equity

A drop in ROE from 33.29% to 21.84% signals weaker returns on shareholder capital. Over several months this could reflect margin compression, slower asset utilization, or capital base expansion without commensurate earnings, which may limit the company’s ability to deliver improving shareholder returns.

Modest Revenue Growth

Revenue growth of 3.65% is modest for a firm executing expansion or modernization in medical care facilities. Sustained low top-line growth can constrain scalability, limit operating leverage benefits, and slow improvements in absolute cash generation absent margin expansion or new service lines.

Limited Earnings Visibility

The absence of guidance and earnings-call highlights reduces forward visibility for investors and stakeholders. Over a multi-month horizon, limited disclosure can hinder planning, obscure near-term operational risks or investment needs, and weaken stakeholder confidence in management transparency.

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.

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	1.32B	1.23B	1.14B	1.08B
EBITDA	1.22B	1.15B	1.12B	1.03B
Net Income	593.02M	558.41M	506.13M	316.87M
Balance Sheet
Total Assets	6.06B	5.78B	5.45B	4.71B
Cash, Cash Equivalents and Short-Term Investments	895.33M	910.88M	690.14M	535.36M
Total Debt	2.54B	3.00B	3.23B	3.18B
Total Liabilities	3.34B	3.67B	3.93B	3.70B
Stockholders Equity	2.72B	2.11B	1.52B	1.01B
Cash Flow
Free Cash Flow	837.42M	414.75M	518.82M	-1.00B
Operating Cash Flow	948.56M	857.53M	951.32M	607.90M
Investing Cash Flow	-388.74M	-434.28M	-644.29M	-1.67B
Financing Cash Flow	-575.37M	-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: Positive

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 above the 20-day moving average (MA) of 1800.55, below the 50-day MA of 1917.96, and above the 200-day MA of 1380.99, indicating a neutral trend. The MACD of -59.88 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 17.80 is Positive, 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	¥2.91B	4.69	―	2.82%	4.82%	9.78%
194A	75 Outperform	¥12.54B	25.86	―	―	―	―
2425	75 Outperform	¥2.98B	27.02	―	2.56%	-3.06%	-38.56%
6197	68 Neutral	¥93.51B	16.02	―	2.47%	1.86%	1370.48%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
7071	62 Neutral	¥43.16B	10.69	―	0.91%	15.77%	-50.57%
2373	60 Neutral	¥5.75B	23.20	―	4.07%	6.08%	38.00%