WDB Holdings Co., Ltd. (2475) AI Stock Analysis

• Market Cap: ¥31.96B
• Dividend Yield: 3.95%
• Average Volume (3M): 19.75K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.70
• Revenue Growth: 1.22%
• EPS Growth: -5.35%
• Country: JP
• Employees: 5,391
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 31.57
• Shares Outstanding: 20,060,000
• 10 Day Avg. Volume: 14,660
• 30 Day Avg. Volume: 19,746
• PEG Ratio: -0.85
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 29.41
• 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: 74 Outperform
• Price Target: ¥1,941.00 ▲(24.58% Upside)

The overall stock score is driven by strong financial performance and attractive valuation. While technical indicators are neutral, the company's solid revenue growth and low leverage provide a strong foundation. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Financial Stability

A low debt-to-equity ratio enhances financial flexibility, reducing risk and enabling the company to invest in growth opportunities.

Operational Efficiency

Consistent operational efficiency suggests effective cost management and resource utilization, supporting sustainable profitability.

Negative Factors

Declining Profit Margins

Declining profit margins can erode profitability, suggesting cost management challenges that may impact future earnings.

Inconsistent Free Cash Flow

Volatile free cash flow can hinder strategic investments and financial planning, affecting long-term business growth and stability.

Decreased Net Profit Margin

A declining net profit margin indicates reduced efficiency in converting revenue into profit, potentially impacting shareholder returns.

WDB Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

WDB Holdings Co., Ltd. (2475) is a diversified company primarily engaged in providing comprehensive business solutions across various sectors, including information technology, logistics, and manufacturing. The firm focuses on delivering innovative products and services that enhance operational efficiency and drive growth for its clients. WDB Holdings specializes in software development, system integration, and data management services, catering to a wide array of industries.

How the Company Makes Money

WDB Holdings generates revenue through multiple streams, primarily by offering IT services such as software development, system integration, and consulting. The company also earns income from its logistics operations, which include supply chain management and distribution services. Key revenue streams include long-term contracts with corporate clients for ongoing IT support and customized software solutions, as well as one-time project fees for specific system integrations. Additionally, WDB Holdings may benefit from strategic partnerships with technology providers, enhancing its service offerings and expanding its market reach, thereby contributing significantly to its overall earnings.

WDB Holdings Co., Ltd. Financial Statement Overview

Summary

WDB Holdings Co., Ltd. shows strong revenue growth and operational efficiency, but faces challenges with declining profit margins and inconsistent free cash flow. The company's low leverage and strong equity position provide a solid foundation for future growth.

Income Statement

WDB Holdings Co., Ltd. has demonstrated robust revenue growth over the years, with a notable increase of 56.5% in the most recent year. However, the gross profit margin has been declining, indicating potential cost pressures. The net profit margin has also decreased, suggesting challenges in maintaining profitability. Despite these issues, the company maintains a solid EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The company exhibits strong financial stability with a low debt-to-equity ratio, indicating minimal leverage risk. The return on equity has decreased slightly but remains healthy, showcasing effective use of equity to generate profits. The equity ratio is strong, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a mixed picture. The free cash flow growth rate is highly volatile, with significant fluctuations over the years. The operating cash flow to net income ratio is stable, suggesting consistent cash generation relative to net income. However, the free cash flow to net income ratio has decreased, indicating potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.21B	51.14B	49.30B	47.60B	46.88B	44.13B
Gross Profit	11.77B	11.74B	11.89B	11.93B	12.49B	11.53B
EBITDA	5.38B	5.35B	5.71B	5.78B	6.65B	5.45B
Net Income	3.36B	3.05B	3.55B	3.54B	4.17B	3.41B
Balance Sheet
Total Assets	41.77B	41.75B	39.83B	36.20B	33.83B	30.62B
Cash, Cash Equivalents and Short-Term Investments	19.21B	20.57B	20.94B	18.37B	16.43B	19.41B
Total Debt	275.51M	87.84M	70.68M	61.96M	72.92M	65.77M
Total Liabilities	8.44B	8.51B	8.68B	7.73B	8.03B	8.32B
Stockholders Equity	31.99B	31.89B	30.04B	27.61B	25.11B	21.81B
Cash Flow
Free Cash Flow	0.00	1.23B	3.72B	3.25B	-2.24B	4.08B
Operating Cash Flow	0.00	4.37B	4.49B	3.55B	4.03B	4.20B
Investing Cash Flow	0.00	-3.33B	-712.00M	-337.99M	-6.10B	-122.14M
Financing Cash Flow	0.00	-1.42B	-1.24B	-1.31B	-870.93M	-901.39M

WDB Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1558.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2475, the sentiment is Negative. The current price of 1558 is below the 20-day moving average (MA) of 1577.40, below the 50-day MA of 1613.82, and below the 200-day MA of 1728.43, indicating a bearish trend. The MACD of -16.07 indicates Positive momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2475.

WDB Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6089	75 Outperform	¥23.36B	17.08	―	3.92%	1.18%	-5.05%
2475	74 Outperform	¥31.96B	9.91	―	3.95%	1.22%	-5.35%
4318	72 Outperform	¥15.32B	5.03	―	3.78%	8.08%	-19.45%
7059	72 Outperform	¥35.44B	17.47	―	3.85%	20.52%	11.81%
2429	66 Neutral	¥46.98B	6.31	―	3.23%	15.79%	113.14%
6070	64 Neutral	¥29.25B	12.48	―	4.82%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

WDB Holdings Co., Ltd. Corporate Events

Nakano Shoten Co., Ltd. Becomes Controlling Shareholder of WDB Holdings

WDB Holdings Co., Ltd. has announced a change in its controlling shareholder, with Nakano Shoten Co., Ltd. now holding a controlling interest. This shift occurred after WDB Holdings acquired its treasury stock, increasing Nakano Shoten’s voting rights to 50.4%. The change solidifies Nakano Shoten’s influence over WDB Holdings, potentially impacting the company’s strategic direction and decision-making processes.

WDB Holdings Reports Mixed Financial Results for First Half of 2025

WDB Holdings Co., Ltd. reported a slight decline in net sales by 1.0% to 25,387 million yen for the six months ended September 30, 2025, compared to the previous year. Despite the drop in sales and operating income, the company saw an increase in net income attributable to owners of the parent by 11.8%. The financial position remains stable with a slight increase in total assets and net assets. The company maintained its dividend forecast, indicating confidence in its financial stability despite the challenges.

WDB Holdings Announces FY2025 2Q Financial Results and Strategic Relocation

WDB Holdings Co., Ltd. has released its FY2025 2Q financial report, highlighting a strategic shift in its business operations. The company reported sales of ¥51.1 billion and an ordinary income of ¥5.0 billion for FY2024, indicating a stable financial performance. The relocation of its headquarters to Kobe-shi, Hyogo, marks a significant move that could influence its operational dynamics and market presence.