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Watahan & Co., Ltd. (JP:3199)
:3199
Japanese Market
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Watahan & Co., Ltd. (3199) AI Stock Analysis

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JP:3199

Watahan & Co., Ltd.

(3199)

Rating:62Neutral
Price Target:
¥1,674.00
▲(6.02%Upside)
Watahan & Co., Ltd. exhibits a mixed financial performance with potential risks due to high debt reliance and negative cash flow. Technical indicators show weak momentum, while valuation metrics offer moderate appeal. The lack of earnings call and corporate events data limits further insights.

Watahan & Co., Ltd. (3199) vs. iShares MSCI Japan ETF (EWJ)

Watahan & Co., Ltd. Business Overview & Revenue Model

Company DescriptionWatahan & Co., Ltd. (3199) is a Japanese company primarily engaged in the retail sector, focusing on home improvement and related products. The company operates a chain of stores offering a wide array of goods, including hardware, gardening supplies, home appliances, and interior furnishings. Watahan is known for its customer-centric approach, providing quality products and services to enhance home living and DIY projects.
How the Company Makes MoneyWatahan & Co., Ltd. generates revenue primarily through the sale of home improvement products in its retail stores. The company's key revenue streams include the direct sale of goods such as tools, building materials, home appliances, and gardening supplies to consumers. Additionally, Watahan may engage in strategic partnerships with suppliers and manufacturers to offer exclusive products or branded lines, enhancing its product offerings and attracting more customers. Seasonal sales and promotional events also contribute significantly to its earnings by driving increased foot traffic and sales volume during peak shopping periods.

Watahan & Co., Ltd. Financial Statement Overview

Summary
Watahan & Co., Ltd. shows a mixed financial performance with stable gross profit margins and a positive revenue trajectory, but faces potential risks due to high debt reliance and negative cash flow trends.
Income Statement
65
Positive
The company shows a steady increase in total revenue with a slight dip in 2023, followed by a recovery in 2024 and 2025. Gross profit margin has remained stable, indicating efficient cost management at the gross level. However, the net profit margin is relatively low, which points to higher operational costs or other expenses affecting profitability. Revenue growth has been inconsistent, with a decline in 2023 but a positive rebound in 2024 and 2025.
Balance Sheet
70
Positive
The balance sheet reflects a relatively high debt-to-equity ratio, suggesting a high reliance on debt financing, which could be a potential risk if not managed properly. However, the return on equity is stable, indicating reasonable profitability relative to shareholders' equity. The equity ratio has been improving, showing strengthening of the company's financial structure over time.
Cash Flow
55
Neutral
Cash flow analysis shows volatility with negative operating cash flow in recent years, which is a concern for liquidity. The free cash flow has shown significant fluctuations, with negative values in some years, reflecting challenges in generating sufficient cash from operations after capital expenditures. The ratio of operating cash flow to net income is inconsistent, indicating potential discrepancies between reported profits and cash generation.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue133.59B128.07B134.30B114.50B114.79B
Gross Profit28.03B27.39B27.59B25.04B24.44B
EBITDA5.75B5.29B4.59B5.12B5.32B
Net Income2.08B1.85B1.65B2.20B1.92B
Balance Sheet
Total Assets79.43B79.27B84.20B69.55B58.91B
Cash, Cash Equivalents and Short-Term Investments3.96B3.83B3.09B4.54B5.19B
Total Debt26.68B20.04B29.86B22.40B15.28B
Total Liabilities56.19B56.48B62.95B50.21B41.37B
Stockholders Equity23.24B22.79B21.25B19.35B17.53B
Cash Flow
Free Cash Flow-4.74B10.84B-7.24B-4.75B5.87B
Operating Cash Flow-2.88B12.47B-3.65B-1.63B6.97B
Investing Cash Flow-1.83B-2.17B-3.96B-4.01B-1.66B
Financing Cash Flow4.86B-9.48B6.16B4.79B-2.83B

Watahan & Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1579.00
Price Trends
50DMA
1583.14
Negative
100DMA
1598.12
Negative
200DMA
1593.05
Negative
Market Momentum
MACD
1.73
Positive
RSI
43.65
Neutral
STOCH
13.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3199, the sentiment is Negative. The current price of 1579 is below the 20-day moving average (MA) of 1604.50, below the 50-day MA of 1583.14, and below the 200-day MA of 1593.05, indicating a bearish trend. The MACD of 1.73 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 13.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3199.

Watahan & Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥31.82B12.65
3.62%1.76%33.09%
67
Neutral
¥261.79B13.646.45%2.57%5.11%-13.15%
67
Neutral
¥120.19B7.94
2.63%4.89%7.47%
62
Neutral
¥31.45B14.81
1.52%3.11%-5.40%
61
Neutral
¥8.18B
1.27%-2.88%88.38%
57
Neutral
¥53.41B270.160.09%3.11%-5.51%-96.59%
46
Neutral
¥11.33B
0.47%-1.79%-491.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3199
Watahan & Co., Ltd.
1,579.00
-79.29
-4.78%
JP:3546
Alleanza Holdings Co., Ltd.
1,051.00
2.68
0.26%
JP:7450
Sunday Co., Ltd.
1,054.00
-434.11
-29.17%
JP:7516
Kohnan Shoji Co., Ltd.
3,900.00
220.47
5.99%
JP:8208
Encho Co., Ltd.
1,217.00
322.99
36.13%
JP:2790
NAFCO Co., Ltd.
1,831.00
-964.78
-34.51%

Watahan & Co., Ltd. Corporate Events

Watahan & Co., Ltd. Completes Treasury Stock Disposal
Jul 25, 2025

Watahan & Co., Ltd. has completed the payment procedure for the disposal of its treasury stock as restricted stock compensation, following a resolution by the Board of Directors. This move involves the disposal of 29,410 common shares at a price of 1,632 yen per share, totaling 47,997,120 yen, and is allocated to four directors, excluding those on the Audit and Supervisory Committee.

Watahan & Co., Ltd. Reports Q1 2025 Financial Results and Positive Outlook
Jul 24, 2025

Watahan & Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 1.9% to ¥32,416 million, despite a decline in operating profit by 17.4%. The company’s comprehensive income rose by 31.1%, indicating a positive trend in profitability. The financial forecast for the fiscal year ending March 31, 2026, anticipates a 4% increase in net sales and a 10.7% rise in profit attributable to owners of the parent, reflecting a stable growth outlook.

Watahan & Co., Ltd. Announces Corrections to Treasury Stock Disposal Notice
Jul 3, 2025

Watahan & Co., Ltd. announced corrections to their previous notice regarding the disposal of treasury stock as restricted stock compensation. The corrections involve details about the disposal outline, purpose, and calculation of the amount to be paid. This adjustment reflects the company’s commitment to transparency and accuracy in its financial disclosures, ensuring stakeholders are informed of the correct information regarding stock compensation plans.

Watahan & Co., Ltd. Announces Treasury Stock Disposal for Director Compensation
Jun 27, 2025

Watahan & Co., Ltd. has announced the disposal of its treasury stock as part of a restricted stock compensation plan aimed at aligning the interests of its directors with the company’s long-term corporate value. This move, approved by the Board of Directors, involves allocating shares to eligible directors under conditions that restrict their transfer for 30 years, thereby incentivizing directors to contribute to the company’s sustained growth and value sharing with shareholders.

Watahan & Co., Ltd. Announces Changes in Board of Directors
May 12, 2025

Watahan & Co., Ltd. has announced changes in its board of directors, with Kayoko Nohara and Akihisa Shirota being nominated for director positions. These appointments are expected to enhance the company’s strategic direction and strengthen its audit and supervisory systems, leveraging their diverse experiences and expertise.

Watahan & Co., Ltd. Announces Commemorative Dividend for 10th Listing Anniversary
May 12, 2025

Watahan & Co., Ltd. announced a dividend payout including a commemorative dividend to mark its 10th listing anniversary. The total dividend per share is set at 29 yen, with plans to increase it to 30 yen in the next fiscal year, reflecting the company’s commitment to returning profits to shareholders.

Watahan & Co., Ltd. Reports Significant Impairment Loss
May 12, 2025

Watahan & Co., Ltd. has announced the recording of an extraordinary impairment loss of 687 million yen in its consolidated financial statements for the fiscal year ending March 2025. This impairment loss, resulting from the assessment of future recoverability of fixed assets including stores and rental assets, is reflected in the company’s financial results, potentially impacting its financial standing and signaling a strategic reassessment of asset value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025