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

• Market Cap: ¥29.82B
• Dividend Yield: 1.68%
• Average Volume (3M): 30.81K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.50
• Revenue Growth: 1.84%
• EPS Growth: -14.00%
• Country: JP
• Employees: 1,584
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 25.27
• Shares Outstanding: 19,958,940
• 10 Day Avg. Volume: 21,680
• 30 Day Avg. Volume: 30,813
• PEG Ratio: 1.24
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -6.71
• 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: 58 Neutral
• Price Target: ¥1,473.00 ▲(4.47% Upside)

The overall stock score of 58 reflects a combination of mixed financial performance and bearish technical indicators. While the valuation appears reasonable, the company's high debt levels and negative cash flow trends raise concerns. The technical analysis suggests weak momentum, which could impact short-term performance.

Positive Factors

Revenue Growth

Consistent revenue growth in recent years indicates resilience and the ability to recover from downturns, suggesting a strong market position.

Gross Profit Margin Stability

Stable gross profit margins reflect effective cost control and pricing strategies, supporting long-term profitability and competitive advantage.

Equity Ratio Improvement

An improving equity ratio indicates a stronger financial foundation, enhancing the company's ability to withstand economic fluctuations.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, particularly if interest rates rise or cash flow issues persist.

Negative Cash Flow Trends

Negative cash flow trends pose liquidity risks and may hinder the company's ability to invest in growth opportunities or meet obligations.

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies or high costs, which could impact long-term profitability and competitiveness.

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

Company Description

Watahan & Co.,Ltd., through its subsidiaries, engages in the retail, construction, and trading businesses in Japan. The company operates a chain of home improvement super centers; manages grocery stores; and manages home improvement centers. It is also involved in online retailing, parked vehicle management, and detached wooden houses franchise activities; the construction design, operation, maintenance, and management activities; manufacturing and construction of steel buildings and bridge frames; and operation of parking lots. In addition, the company imports and sells pharmaceutical and cosmetic materials, industrial-use waxes, and general and health food materials; and manufactures, wholesales, and sells tea leaves and confectionery, as well as snack sells at cafe space. Further, it engages in the rental of goods; provision of technical advisory, architectural and steel frame construction drawing, building maintenance, construction material import and sale services, and elderly welfare services, as well as home care services for seniors and individuals with disabilities. Watahan & Co.,Ltd. was founded in 1598 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Watahan & Co., Ltd. generates revenue through multiple streams, primarily from the sale of textiles and apparel in both retail and wholesale markets. The company profits from direct sales in its brick-and-mortar stores as well as through its e-commerce channels, which cater to a growing online consumer base. Additionally, Watahan may engage in strategic partnerships with manufacturers and designers to expand its product offerings and enhance brand visibility. Seasonal promotions and collaborations also contribute to boosting sales and attracting new customers, further solidifying its market presence.

Watahan & Co., Ltd. Financial Statement Overview

Summary

Watahan & Co., Ltd. shows a mixed financial performance with positive revenue trends and stable gross profit margins. However, the high reliance on debt and negative cash flow trends pose significant risks. Improving operational efficiency and cash flow generation is critical for reducing 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.18B	133.59B	128.07B	134.30B	114.50B	114.79B
Gross Profit	27.29B	28.03B	27.39B	27.59B	25.04B	24.44B
EBITDA	5.75B	5.75B	5.29B	4.59B	5.12B	5.32B
Net Income	2.11B	2.08B	1.85B	1.65B	2.20B	1.92B
Balance Sheet
Total Assets	78.26B	79.43B	79.27B	84.20B	69.55B	58.91B
Cash, Cash Equivalents and Short-Term Investments	4.88B	3.96B	3.83B	3.09B	4.54B	5.19B
Total Debt	26.79B	26.68B	20.04B	29.86B	22.40B	15.28B
Total Liabilities	54.89B	56.19B	56.48B	62.95B	50.21B	41.37B
Stockholders Equity	23.37B	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: Negative
• Last Price: 1410.00
• 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:3199, the sentiment is Negative. The current price of 1410 is below the 20-day moving average (MA) of 1450.25, below the 50-day MA of 1456.72, and below the 200-day MA of 1570.14, indicating a bearish trend. The MACD of -10.08 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 19.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3546	73 Outperform	¥33.26B	11.46	―	3.38%	-0.04%	61.12%
7516	67 Neutral	¥123.80B	8.22	―	2.92%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8208	61 Neutral	―	―	―	―	-3.21%	56.44%
3199	58 Neutral	¥29.82B	14.88	―	1.68%	1.84%	-14.00%
2790	55 Neutral	€55.41B	81.39	0.41%	2.89%	-6.21%	-29.75%
7450	48 Neutral	¥10.67B	-5.05	―	0.50%	-0.60%	-386.40%

Watahan & Co., Ltd. Corporate Events

Watahan & Co., Ltd. Reports Mixed Financial Results for First Half of 2025

Watahan & Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in net sales by 0.3% compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 17.4%, 7.9%, and 8.5% respectively. Despite these declines, the company’s total assets and net assets have shown slight growth, indicating a stable financial position. The company’s forecast for the fiscal year ending March 31, 2026, predicts a 4.0% increase in net sales and a 9.7% rise in operating profit, suggesting a positive outlook for future financial performance.