Wealth Management Inc (3772) AI Stock Analysis

• Market Cap: ¥19.83B
• Dividend Yield: 1.93%
• Average Volume (3M): 39.71K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.55
• Revenue Growth: -30.94%
• EPS Growth: 26.14%
• Country: JP
• Employees: 344
• Sector: Real Estate
• Sector Strength: 53
• Industry: Asset Management
• EPS (TTM): -29.97
• 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: ¥1,104.00
• Price Target Upside: 6.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥1,104.00 ▲(6.77% Upside)

The overall stock score of 60 reflects a mixed financial performance with moderate profitability but weak cash flow generation. Technical indicators suggest a bearish trend, although the stock is oversold, which might attract value investors. The valuation is reasonable, providing some support to the stock price.

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 management fees charged for overseeing client assets under management (AUM). These fees are typically calculated as a percentage of the total assets managed by the company. Additionally, the firm may earn income from performance-based fees, which are contingent on achieving specific investment return benchmarks for clients. Wealth Management Inc also derives revenue from offering financial planning services, which may involve one-time or subscription-based fees. The company's earnings are further supported by strategic partnerships with financial institutions and investment firms that provide access to a broad range of investment products and services.

Wealth Management Inc Financial Statement Overview

Summary

The company shows moderate profitability with stable gross profit margins but fluctuating net profit margins. Revenue growth is inconsistent, and recent declines in EBIT and EBITDA margins indicate operational challenges. The balance sheet is strong with manageable leverage, but cash flow generation is weak, highlighting liquidity issues.

Income Statement

The company has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin has experienced fluctuations. Revenue growth has been inconsistent, with a significant drop in the most recent year. The EBIT and EBITDA margins indicate operational efficiency, although they have declined recently. Overall, the company demonstrates moderate profitability with some volatility in revenue and profit margins.

Balance Sheet

The balance sheet reflects a strong equity base with a reasonable debt-to-equity ratio, indicating moderate leverage. The return on equity has been positive, showcasing the company's ability to generate returns for shareholders. The equity ratio suggests a stable financial structure, although the total liabilities have increased over time. Overall, the company maintains a solid financial position with manageable leverage.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating cash flow in recent periods. The free cash flow has also been negative, indicating potential liquidity issues. The operating cash flow to net income ratio suggests inefficiencies in converting income to cash. Despite these challenges, the company has managed its financing activities effectively. Overall, the cash flow position is weak, with significant room for improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.98B	18.31B	28.63B	14.80B	29.03B	5.31B
Gross Profit	6.30B	5.71B	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: 1034.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3772, the sentiment is Negative. The current price of 1034 is below the 20-day moving average (MA) of 1074.10, below the 50-day MA of 1076.36, and above the 200-day MA of 1027.77, indicating a neutral trend. The MACD of -16.26 indicates Positive momentum. The RSI at 37.37 is Neutral, neither overbought nor oversold. The STOCH value of 37.95 is Neutral, 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
8737	73 Outperform	¥16.52B	6.19	―	5.55%	17.92%	15.44%
8624	69 Neutral	€26.55B	14.90	4.48%	5.36%	24.83%	-9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
7347	65 Neutral	¥16.27B	236.19	―	2.62%	11.20%	-93.41%
3454	61 Neutral	¥16.67B	10.59	―	5.63%	36.31%	52.62%
3772	60 Neutral	¥19.83B	12.70	―	1.93%	-30.94%	26.14%
8783	41 Neutral	¥9.08B	―	―	―	-17.04%	46.36%