Watahan & Co., Ltd. (3199) AI Stock Analysis

• Market Cap: ¥32.23B
• Dividend Yield: 1.49%
• Average Volume (3M): 16.11K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.49
• Revenue Growth: 4.31%
• EPS Growth: 11.77%
• Country: JP
• Employees: 1,584
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Home Improvement
• EPS (TTM): -3.01
• Shares Outstanding: 19,958,940
• 10 Day Avg. Volume: 25,120
• 30 Day Avg. Volume: 16,110
• PEG Ratio: -0.68
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.91
• 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: ¥1,653.00
• Price Target Upside: 2.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥1,684.00 ▲(4.27%Upside)

The most significant factor is the company's stable gross profit margins and positive revenue trajectory, although offset by high debt levels and negative cash flow trends. Technical indicators suggest a lack of strong upward momentum, which, coupled with a fair valuation, results in a moderately attractive stock score.

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

Company Description

Watahan & Co., Ltd. (3199) is a Japan-based company primarily engaged in the retail sector. The company operates through various segments including home improvement centers, supermarkets, and real estate. Watahan's core services and products revolve around providing home improvement goods, groceries, and developing real estate properties. Its expansive retail network is designed to cater to the diverse needs of consumers, offering a range of products from DIY tools to daily necessities.

How the Company Makes Money

Watahan & Co., Ltd. generates revenue primarily through its retail operations. The company's key revenue streams are derived from sales at home improvement centers and supermarkets, where it offers a wide array of products including household goods, construction materials, and groceries. Additionally, Watahan benefits from its real estate segment, which involves the development and leasing of commercial properties. This diverse business model enables the company to capitalize on both consumer retail spending and real estate investments. Partnerships with suppliers and strategic locations of its retail outlets also play a significant role in enhancing its revenue potential.

Watahan & Co., Ltd. Financial Statement Overview

Summary

Watahan & Co., Ltd. demonstrates a mixed financial performance with positive revenue trajectory and stable gross profit margins. However, reliance on debt and negative cash flow trends pose potential risks. The company needs to enhance operational efficiency and cash flow generation for sustained growth and reduced financial risk.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	132.90B	133.59B	128.07B	134.30B	114.50B	114.79B
Gross Profit	27.84B	28.03B	27.39B	27.59B	25.04B	24.44B
EBITDA	5.46B	5.75B	5.29B	4.59B	5.12B	5.32B
Net Income	2.48B	2.08B	1.85B	1.65B	2.20B	1.92B
Balance Sheet
Total Assets	87.23B	79.43B	79.27B	84.20B	69.55B	58.91B
Cash, Cash Equivalents and Short-Term Investments	6.35B	3.96B	3.83B	3.09B	4.54B	5.19B
Total Debt	25.18B	26.68B	20.04B	29.86B	22.40B	15.28B
Total Liabilities	62.75B	56.19B	56.48B	62.95B	50.21B	41.37B
Stockholders Equity	24.49B	23.24B	22.79B	21.25B	19.35B	17.53B
Cash Flow
Free Cash Flow	0.00	-4.74B	10.84B	-7.24B	-4.75B	5.87B
Operating Cash Flow	0.00	-2.88B	12.47B	-3.65B	-1.63B	6.97B
Investing Cash Flow	0.00	-1.83B	-2.17B	-3.96B	-4.01B	-1.66B
Financing Cash Flow	0.00	4.86B	-9.48B	6.16B	4.79B	-2.83B

Watahan & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1615.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3199, the sentiment is Positive. The current price of 1615 is above the 20-day moving average (MA) of 1582.80, above the 50-day MA of 1581.20, and above the 200-day MA of 1602.93, indicating a bullish trend. The MACD of 16.10 indicates Negative momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 78.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3199.

Watahan & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3546	70 Neutral	¥30.88B	14.77		3.71%	2.42%	-11.84%
7516	67 Neutral	¥123.65B	7.99		2.54%	6.08%	5.16%
Sector *	67 Neutral	¥252.05B	13.25	6.48%	2.75%	5.05%	-11.93%
3199	64 Neutral	¥32.23B	15.44		1.49%	4.31%	11.77%
8208	61 Neutral	¥7.59B	―		0.90%	-2.88%	88.38%
2790	57 Neutral	¥51.24B	259.18	0.09%	3.23%	-5.51%	-96.59%
7450	46 Neutral	¥11.48B	―		0.47%	-1.67%	-1317.33%

Watahan & Co., Ltd. Corporate Events

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

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

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

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

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

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.