Wealth Management Inc (3772) AI Stock Analysis

• Market Cap: ¥19.54B
• Dividend Yield: 1.85%
• Average Volume (3M): 39.71K
• Price to Earnings (P/E): 169.9
• Beta (1Y): 0.62
• Revenue Growth: -40.77%
• EPS Growth: -91.81%
• Country: JP
• Employees: 344
• Sector: Real Estate
• Sector Strength: 53
• Industry: Asset Management
• EPS (TTM): 1.53
• Shares Outstanding: 19,179,800
• 10 Day Avg. Volume: 38,230
• 30 Day Avg. Volume: 39,710
• PEG Ratio: -0.44
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -5.40
• 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: 54 Neutral
• Price Target: ¥1,162.00 ▲(11.62% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

The overall stock score of 54 for JP:3772 reflects significant concerns in financial performance, with declining revenue, negative cash flows, and high debt levels weighing heavily. Positive price trends in technical analysis and a reasonable valuation with a low P/E ratio and decent dividend yield provide some support, but financial health remains the primary risk factor.

Positive Factors

Management Fees Revenue Model

The management fees model provides a stable and predictable revenue stream, aligning the company's success with client asset growth, which supports long-term financial stability.

Strong Balance Sheet

A strong balance sheet with moderate leverage enhances financial resilience, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Stable Gross Margins

Stable gross margins reflect consistent cost management and pricing power, which are crucial for maintaining profitability in the competitive financial services sector.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which can limit the company's ability to invest in growth and meet financial obligations, impacting long-term sustainability.

Inconsistent Revenue Growth

Inconsistent revenue growth suggests challenges in market expansion and client acquisition, which could hinder the company's ability to scale and compete effectively.

Fluctuating Net Margins

Fluctuating net margins indicate volatility in profitability, which can affect investor confidence and the company's ability to reinvest in its business for long-term growth.

Wealth Management Inc Business Overview & Revenue Model

Company Description

Wealth Management, Inc. primarily operates hotels. It also provides real estate securitization and asset management services. The company was formerly known as Dreamvisor Holdings, Inc. and changed its name to Wealth Management, Inc. in October 2014. The company was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Wealth Management Inc generates revenue primarily through advisory fees, which are charged as a percentage of assets under management (AUM). This fee structure incentivizes the company to grow its clients' investments, aligning its interests with those of its clients. Additionally, the company earns performance-based fees when clients' investments exceed agreed-upon benchmarks. Other revenue streams include commissions from the sale of financial products, such as mutual funds and insurance, as well as fees for specialized services like estate planning and tax consultancy. Significant partnerships with financial institutions and investment platforms also contribute to the company's earnings, providing access to a broader client base and investment opportunities.

Wealth Management Inc Financial Statement Overview

Summary

Financial performance is weak due to a significant revenue decline of 36.03% and negative cash flows, with operating cash flow at -3.08B and free cash flow at -3.61B. While asset growth and moderate equity ratio provide some stability, high debt (Debt-to-Equity of 1.56) and low profitability (ROE at 5.69%) are concerning.

Income Statement

Wealth Management Inc shows a significant decline in Total Revenue for the latest annual period (2025-03-31) at 18.31B compared to 28.63B in the prior year, reflecting a revenue growth rate of -36.03%. Gross Profit Margin stands at 31.22%, which is moderate, but Net Profit Margin is low at 6.02%. EBIT Margin (13.76%) and EBITDA Margin (17.17%) indicate decent operational efficiency, though profitability has weakened due to lower revenue and net income dropping to 1.10B from 1.82B. The downward revenue trend poses a risk, though margins provide some stability.

Balance Sheet

The company's balance sheet reflects moderate stability with Total Assets growing to 62.10B in the latest annual period (2025-03-31) from 55.23B. Stockholders' Equity increased to 19.40B from 18.55B, yielding an Equity Ratio of 31.24%, which is reasonable. However, the Debt-to-Equity Ratio is high at 1.56, indicating significant leverage. Return on Equity (ROE) is modest at 5.69%, reflecting limited profitability relative to equity. High debt levels remain a concern despite asset growth.

Cash Flow

Cash flow performance is weak for the latest annual period (2025-03-31), with Operating Cash Flow at -3.08B, a sharp decline from 7.03B in the prior year. Free Cash Flow is also negative at -3.61B, down from 6.72B, resulting in a Free Cash Flow Growth Rate of -153.82%. The Operating Cash Flow to Net Income Ratio is -2.79, and Free Cash Flow to Net Income Ratio is -3.28, both indicating severe cash flow challenges relative to earnings. This suggests liquidity risks and operational inefficiencies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	19.98B	18.31B	28.63B	14.80B	29.03B	5.31B
Gross Profit	6.30B	5.84B	5.29B	5.53B	9.69B	866.03M
EBITDA	3.54B	3.14B	3.54B	4.90B	8.18B	-1.00B
Net Income	1.56B	1.10B	1.82B	3.73B	3.51B	-1.06B
Balance Sheet
Total Assets	59.26B	62.10B	55.23B	49.90B	39.39B	25.75B
Cash, Cash Equivalents and Short-Term Investments	6.42B	9.41B	16.39B	8.73B	5.70B	2.16B
Total Debt	30.79B	30.33B	29.79B	29.64B	23.75B	16.19B
Total Liabilities	40.98B	42.70B	36.68B	34.12B	28.46B	17.13B
Stockholders Equity	18.27B	19.40B	18.55B	15.79B	10.93B	7.59B
Cash Flow
Free Cash Flow	0.00	-3.61B	6.72B	-3.36B	19.23B	-3.76B
Operating Cash Flow	0.00	-3.08B	7.03B	-3.26B	19.28B	-3.72B
Investing Cash Flow	0.00	-3.85B	-457.44M	-314.78M	-4.59B	-315.54M
Financing Cash Flow	0.00	1.92B	-1.23B	6.59B	-11.23B	1.86B

Wealth Management Inc Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3772, the sentiment is Negative. The current price of 1041 is below the 20-day moving average (MA) of 1067.40, below the 50-day MA of 1065.62, and below the 200-day MA of 1059.72, indicating a bearish trend. The MACD of -4.38 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 14.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3772.

Wealth Management Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	78 Outperform	¥58.61B	10.05	17.21%	4.27%	7.60%	7.20%
8624	76 Outperform	¥42.63B	7.03	6.18%	4.42%	1.56%	-9.90%
8473	72 Outperform	$1.94T	3.01	20.02%	2.63%	23.96%	179.16%
8616	72 Outperform	¥181.06B	7.61	7.40%	5.60%	3.10%	17.73%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3772	54 Neutral	¥19.54B	169.87	―	1.85%	-40.77%	-91.81%
2134	42 Neutral	¥15.34B	-12.65	―	―	-21.88%	17.12%