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

• Market Cap: ¥6.76B
• Dividend Yield: 3.18%
• Average Volume (3M): 22.78K
• Price to Earnings (P/E): 7.5
• 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: 16,540
• 30 Day Avg. Volume: 22,780
• 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 ▲(9.72% 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.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business strategies and market demand, supporting long-term financial health and expansion potential.

Profitability Improvement

Improved profitability margins reflect enhanced operational efficiency and cost management, contributing to sustainable earnings growth.

International Partnerships

Strategic partnerships expand global reach and distribution, strengthening market position and diversifying revenue streams for long-term stability.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates challenges in liquidity management, which could hinder the company's ability to sustain operations and invest in future growth.

Cash Generation Challenges

Difficulty in converting earnings to cash flow can strain liquidity and limit the company's capacity to fund operations and strategic initiatives.

Will Co., Ltd. Business Overview & Revenue Model

Company Description

WILL,Co.,Ltd. engages in the manufacture and sale of precision machined components using CNC lathe in Japan and internationally. It offers electronic parts, including probe pins used for semiconductor inspection devices; and connectors. The company also provides automotive and hydraulic components; and medical device components, such as hearing aids, dental equipment, endoscopes, and nozzles. It serves electronic, automotive, and medical device component manufacturers. The company was founded in 1993 and is headquartered in Seika, Japan.

How the Company Makes Money

Will Co., Ltd. generates revenue through multiple streams, primarily from the sales of software products and digital content services. The company monetizes its technology offerings through subscription-based models and licensing agreements, allowing businesses and consumers to access its software solutions. Additionally, Will Co., Ltd. benefits from strategic partnerships with other tech firms, which help expand its market reach and enhance its service offerings. Advertising revenue from its digital platforms also contributes to its earnings, as the company monetizes user engagement through targeted ads and promotional campaigns.

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: 597.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 597 is above the 20-day moving average (MA) of 582.25, above the 50-day MA of 562.22, and above the 200-day MA of 494.49, indicating a bullish trend. The MACD of 7.38 indicates Positive momentum. The RSI at 64.79 is Neutral, neither overbought nor oversold. The STOCH value of 62.82 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	¥6.67B	9.50	―	3.53%	9.43%	6.79%
3241	76 Outperform	¥6.76B	7.51	―	3.18%	18.41%	54.19%
8891	67 Neutral	¥6.30B	6.00	―	2.95%	-0.96%	-7.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3261	65 Neutral	¥4.79B	24.98	―	1.68%	7.47%	148.01%
3495	60 Neutral	¥6.62B	6.50	―	2.25%	14.92%	39.05%
8938	45 Neutral	¥3.40B	-8.72	―	0.53%	7.33%	-282.83%