WILLPLUS Holdings Corp. (3538) AI Stock Analysis

• Market Cap: ¥10.80B
• Dividend Yield: 4.32%
• Average Volume (3M): 17.23K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.56
• Revenue Growth: 58.36%
• EPS Growth: 21.77%
• Country: JP
• Employees: 660
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): N/A
• Shares Outstanding: 10,358,400
• 10 Day Avg. Volume: 12,870
• 30 Day Avg. Volume: 17,233
• PEG Ratio: 0.17
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -5.55
• 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: 68 Neutral
• Price Target: ¥1,180.00 ▲(13.35% Upside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

The overall stock score is primarily influenced by strong financial performance and attractive valuation. However, technical analysis indicates bearish trends, which dampen the overall score. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong revenue growth

Sustained high revenue growth (~34–36% YoY per the latest metrics) indicates expanding sales or market share across its dealership network. Over 2–6 months this supports scale advantages, better fixed-cost absorption, and creates room for reinvestment into after-sales services that drive recurring income.

Healthy margins and profitability

Reported healthy gross and net margins point to effective pricing and cost control in vehicle sales and after-sales. Margin durability helps the business withstand cyclical sales volatility, funds operating needs and dividends, and underpins multi-quarter profitability resilience in auto retail.

Solid return on equity

A solid ROE reflects efficient use of shareholder capital in dealership operations and services. Persistent ROE strength signals management effectiveness and the potential for sustained shareholder value creation as revenues scale and operational leverage is realized over coming quarters.

Negative Factors

Rising leverage

An increasing debt-to-equity ratio and declining equity ratio indicate rising leverage and greater reliance on debt financing. This reduces financial flexibility, raises interest and covenant risk, and can constrain investment or amplify downturn effects if cash generation fails to improve.

Negative operating cash flow

Negative operating cash flow and a material decline in free cash flow show earnings are not converting to cash. Over months this pressures liquidity, limits the ability to self-fund inventory and capex, and increases dependence on external financing, especially with rising leverage.

Pressure on operating margin (EBIT)

A slight decline in EBIT margin signals weakening operating efficiency, potentially from cost or mix pressures. If persistent, margin erosion reduces cash available for deleveraging or reinvestment and amplifies risks from higher debt and weak cash conversion over subsequent quarters.

WILLPLUS Holdings Corp. Business Overview & Revenue Model

Company Description

WILLPLUS Holdings Corporation imports and sells new and used cars in Japan. It also offers auto auction sale; vehicle maintenance and repairing; and automobile insurance products and services. The company was incorporated in 2007 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WILLPLUS Holdings Corp. generates revenue through multiple streams, primarily from the sale of software and cloud-based services to businesses seeking to enhance their digital transformation efforts. The company also earns income from subscription fees for its digital platforms and consulting services that assist clients in implementing technology solutions. Key partnerships with technology providers and strategic alliances in the telecommunications sector further contribute to its revenue, enabling WILLPLUS to offer comprehensive solutions that meet the evolving needs of its clients.

WILLPLUS Holdings Corp. Financial Statement Overview

Summary

WILLPLUS Holdings Corp. shows robust revenue growth and profitability with a strong income statement score. However, increasing leverage and negative cash flows pose potential risks, which slightly lower the overall financial performance score.

Income Statement

WILLPLUS Holdings Corp. has demonstrated strong revenue growth with a 34.42% increase in the latest year. The gross profit margin and net profit margin are healthy, indicating effective cost management and profitability. However, the EBIT margin has slightly decreased over the years, suggesting potential pressure on operating efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which has increased over the years, indicating rising leverage. The return on equity is solid, reflecting effective use of shareholder funds. However, the equity ratio has decreased, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow from operations has been negative in the latest year, which is a concern. The free cash flow has also declined significantly, indicating potential liquidity issues. The operating cash flow to net income ratio is unfavorable, suggesting challenges in converting income into cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	88.61B	47.75B	44.12B	39.70B	40.78B
Gross Profit	12.43B	9.36B	8.62B	8.44B	8.26B
EBITDA	4.04B	3.31B	3.29B	3.58B	3.50B
Net Income	1.44B	1.12B	1.30B	1.55B	1.53B
Balance Sheet
Total Assets	37.23B	32.16B	23.64B	18.63B	16.97B
Cash, Cash Equivalents and Short-Term Investments	8.25B	7.51B	4.29B	5.54B	3.38B
Total Debt	16.53B	13.18B	6.43B	4.62B	3.89B
Total Liabilities	25.03B	21.08B	13.90B	9.80B	9.44B
Stockholders Equity	10.84B	9.83B	9.75B	8.83B	7.53B
Cash Flow
Free Cash Flow	-1.62B	2.06B	-2.62B	1.72B	2.18B
Operating Cash Flow	-1.30B	2.51B	-2.27B	1.91B	2.89B
Investing Cash Flow	-545.04M	-3.86B	-412.04M	-218.00M	-676.16M
Financing Cash Flow	2.58B	4.57B	1.43B	469.41M	-1.36B

WILLPLUS Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1041.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3538, the sentiment is Positive. The current price of 1041 is below the 20-day moving average (MA) of 1054.30, below the 50-day MA of 1049.87, and above the 200-day MA of 1000.74, indicating a bullish trend. The MACD of 5.33 indicates Negative momentum. The RSI at 73.59 is Negative, neither overbought nor oversold. The STOCH value of 90.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3538.

WILLPLUS Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4732	83 Outperform	¥871.46B	22.02	19.13%	2.64%	7.58%	15.12%
7599	70 Outperform	¥149.81B	12.08	―	2.82%	11.66%	-7.47%
3538	68 Neutral	¥10.80B	6.54	―	4.32%	58.36%	21.77%
7593	63 Neutral	¥67.34B	11.94	―	4.49%	8.56%	-13.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3186	61 Neutral	¥298.91B	23.85	―	1.24%	21.79%	9.89%
7602	48 Neutral	¥4.68B	-17.44	―	1.08%	-2.36%	-1738.42%