Wedge Holdings CO., LTD. (2388) AI Stock Analysis

• Market Cap: ¥2.63B
• Dividend Yield: N/A
• Average Volume (3M): 167.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -5.20%
• EPS Growth: 75.97%
• Country: JP
• Employees: 60
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -3.91
• Shares Outstanding: 42,494,476
• 10 Day Avg. Volume: 73,060
• 30 Day Avg. Volume: 167,953
• PEG Ratio: 0.18
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 3.69
• P/FCF Ratio: -187.54
• 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: 41 Neutral
• Price Target: ¥62.00 ▲(1.64% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

The overall stock score is primarily impacted by poor financial performance, characterized by declining revenues and negative profitability. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. These factors collectively suggest significant challenges for the company.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams across asset management, fintech, and real estate provide a buffer against sector-specific downturns, enhancing long-term stability and potential for growth.

Strategic Partnerships

Strategic partnerships expand market reach and create opportunities for joint ventures, potentially driving innovation and growth in core business areas over the long term.

Conservative Leverage

A low debt-to-equity ratio indicates conservative financial management, reducing financial risk and providing flexibility to invest in growth opportunities or weather economic downturns.

Negative Factors

Declining Revenue

A declining revenue trend poses a significant challenge, potentially impacting the company's ability to fund operations and invest in growth, thus affecting long-term sustainability.

Negative Profitability

Sustained negative profitability indicates operational inefficiencies and challenges in achieving cost-effective growth, threatening long-term viability and shareholder value.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to reinvest in business operations, pay down debt, or return capital to shareholders, posing a risk to long-term financial health.

Wedge Holdings CO., LTD. Business Overview & Revenue Model

Company Description

Wedge Holdings CO.,LTD., together with its subsidiaries, engages in the finance and content businesses in Japan and South-East Asia. The company offers financing services for the purchase of motorcycles. It also engages in the publication editing activities; planning and development of card games; and production and distribution of company owned contents and music labels. The company was incorporated in 2001 and is headquartered in Tokyo, Japan. Wedge Holdings CO.,LTD. operates as a subsidiary of Showa Holdings Co., Ltd.

How the Company Makes Money

Wedge Holdings CO., LTD. generates revenue through multiple streams, primarily from its asset management services, where it earns management fees based on the assets under management (AUM). The company also derives income from its fintech ventures, which include technology-driven financial solutions that may charge transaction fees or subscription services. Additionally, revenue is generated from its real estate investments, which may include rental income from commercial properties and profits from property sales. Strategic partnerships with other financial institutions and technology firms enhance its market reach and provide opportunities for joint ventures, contributing to its overall earnings.

Wedge Holdings CO., LTD. Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues, negative profitability, and weak cash flow generation. Despite a stable equity base, the inability to generate positive returns and cash flows raises concerns about financial sustainability.

Income Statement

The income statement reveals significant challenges, with a declining revenue trend and negative profitability metrics. The company has experienced a sharp revenue decline over the years, with a negative revenue growth rate in the most recent period. Gross profit margins have decreased, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies. Net profit margins are also negative, reflecting substantial losses.

Balance Sheet

The balance sheet shows a relatively stable equity base with a low debt-to-equity ratio, suggesting conservative leverage. However, the company has been unable to generate positive returns on equity, with negative ROE figures indicating inefficiencies in utilizing shareholder funds. The equity ratio remains healthy, but the overall financial health is impacted by persistent losses.

Cash Flow

Cash flow analysis indicates struggles with generating positive cash flows. Operating cash flow and free cash flow have been negative, with a declining trend in free cash flow growth. The operating cash flow to net income ratio is unfavorable, highlighting challenges in converting earnings into cash. The free cash flow to net income ratio suggests some ability to cover losses, but overall cash flow performance is weak.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	816.18M	860.96M	765.90M	682.70M	5.77B
Gross Profit	283.48M	397.07M	290.95M	274.29M	5.01B
EBITDA	-178.46M	-883.28M	-474.10M	127.46M	-942.16M
Net Income	-226.64M	-942.98M	-513.20M	55.18M	-1.18B
Balance Sheet
Total Assets	3.68B	3.79B	4.04B	3.51B	4.23B
Cash, Cash Equivalents and Short-Term Investments	1.66B	511.59M	677.11M	234.06M	177.45M
Total Debt	431.35M	451.99M	417.20M	437.45M	367.77M
Total Liabilities	714.35M	741.88M	652.18M	605.40M	620.03M
Stockholders Equity	2.97B	3.05B	3.39B	2.90B	3.61B
Cash Flow
Free Cash Flow	-16.07M	-15.64M	84.80M	37.37M	4.49B
Operating Cash Flow	-16.07M	-15.44M	85.64M	44.34M	4.60B
Investing Cash Flow	1.17B	-148.66M	-329.70M	-8.62M	54.30M
Financing Cash Flow	-9.86M	-25.37M	688.10M	-3.96M	-5.84B

Wedge Holdings CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2388, the sentiment is Neutral. The current price of 61 is below the 20-day moving average (MA) of 61.60, below the 50-day MA of 62.82, and below the 200-day MA of 72.52, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2388.

Wedge Holdings CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4241	73 Outperform	¥3.77B	30.00	―	1.87%	1.62%	―
9248	67 Neutral	¥14.60B	5.69	―	3.88%	15.50%	―
9564	65 Neutral	¥11.26B	16.15	―	1.11%	21.85%	13.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4840	45 Neutral	¥3.36B	-8.36	―	―	150.27%	233.12%
9760	45 Neutral	¥3.02B	-2.47	―	1.51%	24.56%	25.32%
2388	41 Neutral	¥2.63B	-5.39	―	―	-5.20%	75.97%