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

• Market Cap: ¥6.61B
• Dividend Yield: 3.23%
• Average Volume (3M): 22.78K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.34
• Revenue Growth: 18.41%
• EPS Growth: 54.19%
• Country: JP
• Employees: 255
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 8.75
• Shares Outstanding: 11,548,000
• 10 Day Avg. Volume: 16,540
• 30 Day Avg. Volume: 22,780
• PEG Ratio: -1.39
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -14.25
• 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: 62 Neutral
• Price Target: ¥615.00 ▲(11.01% Upside)
• Action: Downgraded Date: 03/04/26
• Date: Action: Downgraded 03/04/26

The score is driven by attractive valuation (low P/E and solid yield) but is held back by elevated leverage and inconsistent cash flow generation. Technicals are mildly supportive but not strong enough to outweigh the cash flow and balance sheet risks.

Positive Factors

Diversified revenue streams

Multiple monetization channels (subscription, licensing, partnerships, ad revenue) create durable, partly recurring cash inflows and reduce reliance on a single product or customer. This structural mix supports revenue resilience and gives management flexibility in go-to-market and pricing strategies over the medium term.

Consistent revenue growth

A multi-year upward revenue trend indicates sustained product-market fit and expanding market penetration. Steady top-line growth provides a platform for margin expansion and scale efficiencies, enabling reinvestment in product development and partnerships that support continued medium-term growth.

Profitability with healthy ROE

Consistent profitability and mid-teens ROE show the company converts capital into returns effectively, signaling operational competence. Sustained positive net income and acceptable ROE support funding internal initiatives and dividends, underpinning long-term shareholder value if capital structure risks are managed.

Negative Factors

Elevated leverage

Meaningfully high leverage reduces financial flexibility and raises refinancing and interest-rate risks. With debt-to-equity near 1.6–2.0x, the firm is more vulnerable to slower revenue or margin shocks, which can force asset sales, cutbacks, or higher financing costs that constrain strategic investments over months to years.

Weak, volatile cash generation

Inconsistent conversion of earnings to cash (negative OCF/FCF in several years) indicates earnings quality and working-capital challenges. Persistent cash shortfalls make the company reliant on external funding given its leverage, increasing execution and refinancing risk during market stress and limiting capital for growth.

Margin compression and cost pressure

Eroding margins and recent net income decline despite higher revenue point to rising costs or pricing pressure. Sustained margin compression reduces free cash generation and the ability to fund R&D or marketing, weakening competitive positioning and leaving less buffer against downturns over the medium term.

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

Profitable with steady revenue growth and generally solid margins, but the profile is constrained by high leverage (debt-to-equity ~1.6–2.0x) and weak/volatile cash conversion (negative operating and free cash flow in most recent years), which increases funding and downturn risk.

Income Statement

Revenue has grown steadily from 2020–2025 (with low-single-digit growth in 2025 after stronger growth earlier), indicating a generally positive trajectory. Profitability is solid for the business model, with gross margin holding in the mid-teens and EBIT margin mostly in the high-single-digits, though margins have compressed versus 2021–2022 levels. Net income is positive each year, but 2025 shows a modest decline versus 2024 despite higher revenue, pointing to cost pressure and slightly weaker earnings quality.

Balance Sheet

The company operates with meaningfully elevated leverage: debt has increased over time and debt-to-equity remains high (roughly 1.6–2.0x across the period, including ~1.64x in 2025). Equity has grown, and returns on equity are healthy overall (low-to-mid teens in most years, ~12% in 2025), supporting the view that capital is being used productively. However, the consistently high leverage reduces financial flexibility and increases sensitivity to downturns or higher funding costs.

Cash Flow

Cash generation is the key weak spot. Operating cash flow is negative in most years (2021, 2022, 2024, 2025), and free cash flow is also negative in those periods, including 2025. While there were strong positive years (notably 2020 and 2023), the pattern is volatile and raises concern that reported earnings are not consistently converting into cash, which can pressure funding needs given the already levered balance sheet.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.18B	14.88B	13.21B	11.55B	9.47B	8.68B
Gross Profit	2.28B	2.32B	2.12B	1.81B	1.61B	1.54B
EBITDA	1.39B	1.19B	1.24B	1.13B	1.03B	951.00M
Net Income	837.00M	664.00M	710.00M	521.00M	594.00M	577.00M
Balance Sheet
Total Assets	14.43B	16.49B	15.34B	14.39B	13.43B	12.15B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.82B	2.32B	2.82B	1.64B	1.87B
Total Debt	7.88B	8.89B	8.64B	8.34B	8.01B	7.09B
Total Liabilities	9.35B	11.08B	10.37B	9.94B	9.34B	8.49B
Stockholders Equity	5.08B	5.41B	4.96B	4.45B	4.08B	3.66B
Cash Flow
Free Cash Flow	0.00	-449.00M	-591.00M	1.02B	-973.00M	-2.05B
Operating Cash Flow	0.00	-418.00M	-435.00M	1.11B	-462.00M	-401.00M
Investing Cash Flow	0.00	-98.00M	-158.00M	-87.00M	-508.00M	-1.64B
Financing Cash Flow	0.00	24.00M	91.00M	148.00M	742.00M	1.69B

Will Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 554.00
• 50DMA: Negative
• 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 Negative. The current price of 554 is below the 20-day moving average (MA) of 584.25, below the 50-day MA of 574.29, and above the 200-day MA of 519.13, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 25.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3241.

Will Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8898	82 Outperform	¥11.90B	11.85	―	4.98%	3.29%	-1.74%
3276	73 Outperform	¥21.95B	15.65	―	4.36%	1.52%	16.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥46.23B	9.84	―	0.45%	-8.33%	-36.89%
3241	62 Neutral	¥6.61B	15.84	―	3.23%	18.41%	54.19%
3252	62 Neutral	¥69.89B	8.53	―	2.89%	-3.09%	-35.66%
5527	59 Neutral	¥8.86B	8.11	―	3.45%	28.82%	672.17%