Will Co., Ltd. (3241) AI Stock Analysis

• Market Cap: ¥6.80B
• Dividend Yield: 3.23%
• Average Volume (3M): 23.10K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.35
• Revenue Growth: 18.41%
• EPS Growth: 54.19%
• Country: JP
• Employees: 255
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 20.00
• Shares Outstanding: 11,548,000
• 10 Day Avg. Volume: 59,320
• 30 Day Avg. Volume: 23,096
• PEG Ratio: 0.21
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -8.82
• 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: 76 Outperform
• Price Target: ¥655.00 ▲(19.96% Upside)

The stock of Will Co., Ltd. is rated favorably due to its strong technical momentum and attractive valuation. Despite the financial risks posed by high leverage and negative cash flow, the company's robust revenue and profit growth, combined with its low P/E ratio and solid dividend yield, make it an appealing investment opportunity.

Will Co., Ltd. Business Overview & Revenue Model

Company Description

Will Co., Ltd. (3241) operates primarily in the entertainment and media sectors, focusing on the production and distribution of film and television content. The company is involved in the creation of original programming as well as the licensing of existing content. With a diverse portfolio that includes various genres and formats, Will Co. aims to engage audiences both domestically and internationally through its innovative storytelling and high-quality productions.

How the Company Makes Money

Will Co., Ltd. generates revenue through multiple streams, primarily from the production and distribution of films and television series. This includes income from box office sales, streaming rights, and syndication of content to various media outlets. Additionally, the company earns revenue through licensing agreements with other distributors and streaming platforms, which allows them to reach a broader audience. Significant partnerships with international media companies enhance their distribution capabilities and contribute to their earnings. Furthermore, merchandise and promotional activities associated with their popular content also provide supplementary revenue.

Will Co., Ltd. Financial Statement Overview

Summary

Will Co., Ltd. shows strong revenue and profit growth with stable gross profit margins and improved net profit margin. However, high leverage and negative cash flow generation present significant risks, necessitating improvement in cash generation capabilities.

Income Statement

The company has demonstrated robust revenue growth, with a 14.38% increase from 2023 to 2024. Gross profit margins have remained stable at around 16%, and the net profit margin improved to 5.37% in 2024 from 4.51% in 2023. The EBIT and EBITDA margins also show healthy performance at 8.48% and 9.37%, respectively, indicating good operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.74, which suggests significant leverage. However, the return on equity has improved to 14.30%, indicating better profitability for shareholders. The equity ratio of 32.37% suggests a moderate level of financial stability.

Cash Flow

The cash flow statement shows a concerning negative free cash flow of -591 million JPY in 2024, a significant decline from 2023. The operating cash flow to net income ratio is negative, reflecting challenges in converting earnings into cash flow, which could impact liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.18B	13.21B	11.55B	9.47B	8.68B	7.96B
Gross Profit	2.28B	2.12B	1.81B	1.61B	1.54B	1.30B
EBITDA	1.39B	1.24B	1.13B	1.03B	951.00M	778.00M
Net Income	837.00M	710.00M	521.00M	594.00M	577.00M	463.00M
Balance Sheet
Total Assets	14.43B	15.34B	14.39B	13.43B	12.15B	9.54B
Cash, Cash Equivalents and Short-Term Investments	1.31B	2.32B	2.82B	1.64B	1.87B	2.23B
Total Debt	7.88B	8.64B	8.34B	8.01B	7.09B	5.27B
Total Liabilities	9.35B	10.37B	9.94B	9.34B	8.49B	6.30B
Stockholders Equity	5.08B	4.96B	4.45B	4.08B	3.66B	3.23B
Cash Flow
Free Cash Flow	0.00	-591.00M	1.02B	-973.00M	-2.05B	993.00M
Operating Cash Flow	0.00	-435.00M	1.11B	-462.00M	-401.00M	1.51B
Investing Cash Flow	0.00	-158.00M	-87.00M	-508.00M	-1.64B	-518.00M
Financing Cash Flow	0.00	91.00M	148.00M	742.00M	1.69B	-66.00M

Will Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 546.00
• 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:3241, the sentiment is Positive. The current price of 546 is below the 20-day moving average (MA) of 557.95, above the 50-day MA of 545.82, and above the 200-day MA of 484.78, indicating a bullish trend. The MACD of 11.02 indicates Negative momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 46.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3241.

Will Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5533	79 Outperform	¥6.71B	9.55	―	3.52%	9.43%	6.79%
3241	76 Outperform	¥6.80B	7.56	―	3.23%	18.41%	54.19%
3495	73 Outperform	¥6.69B	6.49	―	2.28%	14.92%	39.05%
8891	67 Neutral	¥6.31B	6.02	―	3.01%	-0.96%	-7.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3261	65 Neutral	¥4.58B	33.99	―	1.70%	7.47%	148.01%
8938	45 Neutral	¥4.89B	―	―	0.35%	7.33%	-282.83%