WILLPLUS Holdings Corp. (3538) AI Stock Analysis

• Market Cap: ¥10.44B
• Dividend Yield: 4.32%
• Average Volume (3M): 17.23K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.53
• 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: ¥1,174.00 ▲(12.78% 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 (mid-30% range) indicates expanding sales and market traction across operating subsidiaries. Over a multi-month horizon this supports reinvestment capacity, scale advantages in procurement, and the ability to fund network or service expansion without relying solely on short-term market moves.

Healthy profit margins and ROE

Healthy gross and net margins, together with a solid return on equity, signal durable profitability and efficient capital use in core dealership operations. This margin cushion helps absorb cyclical pressure, supports dividend or reinvestment policies, and is a structural strength for sustainable earnings generation.

Recurring after-sales and ancillary revenue model

A business model combining vehicle sales with recurring after-sales services and ancillary fees creates more stable, repeatable revenue streams. Over 2-6 months this structural mix supports predictable cash inflows and customer lifetime value, reducing reliance on one-time retail sales cycles.

Negative Factors

Rising leverage

An increasing reliance on debt and a falling equity ratio raise financial risk and reduce balance sheet flexibility. Over the medium term this constrains the firm's ability to fund expansion or absorb shocks, increases interest burden sensitivity, and can limit strategic options if conditions tighten.

Negative operating cash flow

Negative operating cash flow and shrinking free cash flow indicate earnings are not converting into cash efficiently. Persisting this trend forces reliance on external financing or working capital swings, raising liquidity risk and potentially constraining capital expenditure, dividends, or debt reduction over months.

Eroding operating efficiency (EBIT margin down)

A declining EBIT margin signals rising operating pressure or cost creep that could compress long-term profitability. Without corrective actions, margin erosion undermines free cash flow resilience and reduces buffer against cyclical downturns, making sustained investment and returns harder to maintain.

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

The company primarily makes money through earnings generated by its operating subsidiaries, with revenue typically tied to automotive retail operations. Key revenue streams generally include (1) vehicle sales (new and/or used) where income is derived from the margin between procurement cost and sale price; (2) after-sales services such as maintenance, inspections, repairs, and parts sales, which can provide recurring revenue over a vehicle’s ownership life; and (3) ancillary automotive-related offerings that may include items like insurance agency commissions, accessories, warranties, or finance-related facilitation fees; however, WILLPLUS Holdings’ specific revenue breakdown, the exact set of ancillary offerings it provides, and any named strategic partnerships or manufacturer/dealer agreements contributing to earnings are null.

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	37.41B	32.33B	23.75B	18.73B	17.08B
Cash, Cash Equivalents and Short-Term Investments	8.25B	7.51B	4.29B	5.54B	3.38B
Total Debt	16.56B	13.21B	9.78B	4.62B	3.91B
Total Liabilities	25.21B	21.26B	14.00B	9.90B	9.55B
Stockholders Equity	10.84B	9.82B	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: Negative
• Last Price: 1041.00
• 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:3538, the sentiment is Negative. The current price of 1041 is below the 20-day moving average (MA) of 1063.45, below the 50-day MA of 1057.22, and above the 200-day MA of 1006.81, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥771.10B	19.01	19.13%	2.64%	7.58%	15.12%
3538	68 Neutral	¥10.44B	4.86	―	4.32%	58.36%	21.77%
7599	66 Neutral	¥124.40B	8.08	―	2.82%	11.66%	-7.47%
7593	63 Neutral	¥59.51B	10.40	―	4.49%	8.56%	-13.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3186	53 Neutral	¥227.89B	16.36	―	1.24%	21.79%	9.89%
7602	48 Neutral	¥4.45B	-10.59	―	1.08%	-2.36%	-1738.42%