WDI Corporation (3068) AI Stock Analysis

• Market Cap: ¥18.99B
• Dividend Yield: 0.56%
• Average Volume (3M): 2.31K
• Price to Earnings (P/E): 119.5
• Beta (1Y): 0.32
• Revenue Growth: 1.09%
• EPS Growth: -128.63%
• Country: JP
• Employees: 2,146
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -51.73
• Shares Outstanding: 6,331,920
• 10 Day Avg. Volume: 1,960
• 30 Day Avg. Volume: 2,313
• PEG Ratio: -1.77
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -15.16
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥3,070.00 ▲(1.15% Upside)

The overall stock score is primarily influenced by financial performance, which shows strong revenue growth but challenges in profitability and cash management. Technical analysis indicates a lack of strong momentum, and the high P/E ratio suggests overvaluation. These factors collectively result in a moderate stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Gross Profit Margins

Strong gross profit margins suggest effective cost control and pricing power, enhancing the company's ability to sustain profitability over time.

Strategic Partnerships

Strategic partnerships expand market reach and distribution capabilities, providing a competitive edge and supporting revenue growth.

Negative Factors

Net Profit Margin Volatility

Volatility in net profit margins can indicate challenges in cost control or pricing strategies, potentially impacting long-term profitability.

High Debt Levels

High debt levels can increase financial risk and limit flexibility, affecting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow indicates potential cash management issues, which could constrain operations and investment in future growth.

WDI Corporation Business Overview & Revenue Model

Company Description

WDI Corporation, together with its subsidiaries, owns and manages restaurants in Japan and internationally. It is also involved in bridal planning and operation activities. The company was incorporated in 1954 and is based in Tokyo, Japan.

How the Company Makes Money

WDI Corporation generates revenue primarily through the sale of its electronic components and systems to a wide range of industries. Its revenue model includes direct sales to original equipment manufacturers (OEMs), distribution partnerships, and contracts with government and private sector clients. Key revenue streams consist of product sales, licensing agreements for proprietary technologies, and ongoing maintenance and support services for its systems. Additionally, the company benefits from strategic partnerships with major industry players, allowing it to leverage their distribution networks and enhance market reach, which further contributes to its earnings.

WDI Corporation Financial Statement Overview

Summary

WDI Corporation shows strong revenue growth and gross profit margins, which are positive for the restaurant industry. However, challenges in maintaining consistent net profitability and managing financial leverage, along with negative free cash flow, highlight the need for improved cash management strategies.

Income Statement

WDI Corporation has shown a consistent improvement in revenue, with a notable growth rate over the years. Gross profit margins are strong, indicating efficient cost management. However, the net profit margin has fluctuated, reflecting some volatility in operational efficiency. EBIT and EBITDA margins indicate an improving trend, but the recent decline in EBIT suggests challenges in maintaining operational profitability.

Balance Sheet

The company's debt-to-equity ratio is relatively high, which could pose financial risk if not managed carefully. However, the equity ratio indicates a stable financial structure with a reasonable level of equity relative to total assets. Return on equity has shown variability, reflecting changes in net income. Overall, the balance sheet depicts a company with manageable risks but requires careful debt management.

Cash Flow

Free cash flow has been inconsistent, with recent negative values indicating potential cash management issues. The operating cash flow to net income ratio suggests some challenges in converting profits into cash. Although there have been periods of growth, the cash flow metrics highlight the need for improved cash management strategies to ensure sustainable operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.15B	31.95B	30.95B	26.17B	19.18B	15.82B
Gross Profit	22.99B	22.87B	22.17B	18.64B	13.65B	11.55B
EBITDA	1.92B	2.41B	2.71B	2.63B	2.05B	3.98B
Net Income	156.19M	930.00M	1.05B	940.53M	725.81M	1.69B
Balance Sheet
Total Assets	22.62B	22.55B	23.05B	21.12B	16.98B	14.33B
Cash, Cash Equivalents and Short-Term Investments	5.78B	5.15B	5.94B	5.45B	6.17B	7.42B
Total Debt	9.74B	9.38B	10.30B	10.17B	7.36B	6.18B
Total Liabilities	14.47B	14.44B	15.67B	14.85B	11.73B	9.87B
Stockholders Equity	6.45B	6.43B	5.53B	4.70B	4.17B	3.60B
Cash Flow
Free Cash Flow	0.00	-1.26B	534.44M	547.26M	-2.99B	-1.68B
Operating Cash Flow	0.00	331.05M	1.79B	1.68B	1.34B	-1.39B
Investing Cash Flow	0.00	-241.96M	-1.36B	-1.10B	-4.30B	6.27B
Financing Cash Flow	0.00	-675.20M	-116.14M	-1.38B	1.59B	-650.10M

WDI Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3035.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3068, the sentiment is Positive. The current price of 3035 is above the 20-day moving average (MA) of 3004.05, above the 50-day MA of 3007.02, and below the 200-day MA of 3063.48, indicating a neutral trend. The MACD of 6.52 indicates Negative momentum. The RSI at 66.70 is Neutral, neither overbought nor oversold. The STOCH value of 76.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3068.

WDI Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7554	65 Neutral	¥19.70B	18.83	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3329	61 Neutral	¥16.66B	22.79	―	0.95%	3.21%	1.96%
7621	60 Neutral	¥19.80B	3,542.00	―	0.43%	2.86%	-129.51%
3075	58 Neutral	¥20.80B	29.54	―	0.78%	―	―
3068	54 Neutral	¥18.99B	119.48	―	0.56%	1.09%	-128.63%
2694	45 Neutral	¥16.44B	-23.36	―	0.71%	2.26%	-335.39%