WILLPLUS Holdings Corp. (3538) AI Stock Analysis

• Market Cap: ¥10.08B
• Dividend Yield: 4.45%
• Average Volume (3M): 16.16K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.58
• Revenue Growth: 85.60%
• EPS Growth: 35.28%
• Country: JP
• Employees: 660
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Dealerships
• EPS (TTM): 32.95
• Shares Outstanding: 10,412,300
• 10 Day Avg. Volume: 16,220
• 30 Day Avg. Volume: 16,156
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,131.00
• Price Target Upside: 12.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,131.00 ▲(12.54% Upside)

WILLPLUS Holdings Corp. has a strong valuation with a low P/E ratio and attractive dividend yield, which are significant positives. However, financial performance is mixed, with strong revenue growth offset by negative cash flows and increasing leverage. Technical analysis supports a stable outlook with positive price trends.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for the company's offerings and effective market positioning, which can drive long-term business expansion.

Profit Margins

Healthy profit margins suggest efficient operations and cost control, which are crucial for sustaining profitability and competitive advantage.

Market Position

A strong market position in the premium automotive sector supports brand strength and customer loyalty, enhancing long-term growth prospects.

Negative Factors

Negative Cash Flows

Negative cash flows can strain liquidity and limit the company's ability to invest in growth opportunities, posing a risk to financial stability.

Increasing Leverage

Rising leverage increases financial risk and interest obligations, potentially impacting the company's ability to weather economic downturns.

Decreasing Equity Ratio

A decreasing equity ratio indicates less financial flexibility and a greater dependence on external financing, which can affect long-term sustainability.

WILLPLUS Holdings Corp. Business Overview & Revenue Model

Company Description

WILLPLUS Holdings Corp. (3538) is a Japanese company that primarily operates in the automotive sector. The company engages in the import, sale, and maintenance of foreign automobiles. It manages a network of dealerships offering a variety of premium and luxury car brands, catering to customers seeking high-quality vehicles and exceptional after-sales services.

How the Company Makes Money

WILLPLUS Holdings Corp. makes money through its network of dealerships by selling imported automobiles and providing related maintenance services. The company generates revenue from the sales of luxury and premium vehicles, as well as from offering repair and maintenance services, which are crucial for customer retention and satisfaction. Additionally, the company may benefit from partnerships with international automobile manufacturers that supply the vehicles, and these relationships can influence pricing and inventory availability. Revenue is also supported by financial services related to vehicle purchases, such as financing and insurance options offered to customers.

WILLPLUS Holdings Corp. Financial Statement Overview

Summary

WILLPLUS Holdings Corp. shows robust revenue growth and profitability, but increasing leverage and negative cash flows pose potential risks. The company needs to address its cash flow challenges to ensure sustainable growth and financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.97B	88.61B	47.75B	44.12B	39.70B	40.78B
Gross Profit	11.82B	12.43B	9.36B	8.62B	8.44B	8.26B
EBITDA	4.31B	4.04B	3.31B	3.29B	3.58B	3.50B
Net Income	1.60B	1.44B	1.12B	1.30B	1.55B	1.53B
Balance Sheet
Total Assets	38.24B	37.23B	32.16B	23.64B	18.63B	16.97B
Cash, Cash Equivalents and Short-Term Investments	7.75B	8.25B	7.51B	4.29B	5.54B	3.38B
Total Debt	17.68B	16.53B	13.18B	6.43B	4.62B	3.89B
Total Liabilities	26.33B	25.03B	21.08B	13.90B	9.80B	9.44B
Stockholders Equity	10.58B	10.84B	9.83B	9.75B	8.83B	7.53B
Cash Flow
Free Cash Flow	0.00	-1.62B	2.06B	-2.62B	1.72B	2.18B
Operating Cash Flow	0.00	-1.30B	2.51B	-2.27B	1.91B	2.89B
Investing Cash Flow	0.00	-545.04M	-3.86B	-412.04M	-218.00M	-676.16M
Financing Cash Flow	0.00	2.58B	4.57B	1.43B	469.41M	-1.36B

WILLPLUS Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1005.00
• 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:3538, the sentiment is Positive. The current price of 1005 is above the 20-day moving average (MA) of 1003.30, above the 50-day MA of 996.04, and above the 200-day MA of 974.91, indicating a bullish trend. The MACD of 3.43 indicates Negative momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 45.00 is Neutral, 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
3184	81 Outperform	¥9.07B	7.34		1.62%	9.36%	17.92%
7134	78 Outperform	¥9.21B	12.49		2.77%	7.91%	8.30%
3538	75 Outperform	¥10.08B	6.34		4.45%	85.60%	35.28%
2788	75 Outperform	¥5.07B	7.58		4.04%	3.67%	-30.07%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
3347	―	$10.07B	17.98		1.47%	―	―
7602	52 Neutral	¥2.79B	139.38		1.47%	0.91%	-517.75%