WonderPlanet Inc. (4199) AI Stock Analysis

• Market Cap: ¥2.58B
• Dividend Yield: N/A
• Average Volume (3M): 42.48K
• Price to Earnings (P/E): 223.9
• Beta (1Y): 1.17
• Revenue Growth: -22.80%
• EPS Growth: -147.34%
• Country: JP
• Employees: 175
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -41.20
• Shares Outstanding: 2,598,212
• 10 Day Avg. Volume: 49,460
• 30 Day Avg. Volume: 42,480
• PEG Ratio: -0.19
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.17
• 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

• Rating: 60 Neutral
• Price Target: ¥1,093.00 ▲(11.08%Upside)

The stock's overall score is driven by strong financial performance and positive technical analysis, but its valuation is unattractive due to a negative P/E ratio and lack of dividend yield. Despite profitability improvements, revenue contraction and moderate leverage remain concerns.

WonderPlanet Inc. Business Overview & Revenue Model

Company Description

WonderPlanet Inc. (4199) is a Japanese company specializing in the development and operation of mobile games. The company is renowned for its engaging and interactive gaming experiences, primarily targeting smartphone users. WonderPlanet's core products include a variety of mobile games that cater to diverse gaming preferences, emphasizing entertainment and innovation within the digital gaming sector.

How the Company Makes Money

WonderPlanet Inc. generates revenue primarily through the development and operation of mobile games. The company's primary revenue streams include in-app purchases, where players buy virtual goods or enhancements to improve their gaming experience, and advertising, where advertisers pay to display ads within the games. Additionally, WonderPlanet may engage in strategic partnerships and collaborations with other companies in the gaming industry to expand its reach and enhance its offerings, contributing to its earnings.

WonderPlanet Inc. Financial Statement Overview

Summary

WonderPlanet Inc. shows a robust recovery in profitability with a positive net income and improved cash flow, despite a decline in revenue. The company has improved its cost structure, leading to better profit margins. However, moderate leverage and revenue contraction are risks.

Income Statement

WonderPlanet Inc. has shown a significant improvement in profitability with a positive turn in net income from a loss of -236.13 million in 2023 to a gain of 92.26 million in 2024. The Gross Profit Margin increased to 29.28% from 19.71% in the previous year, indicating better cost management. However, the revenue has decreased by 29.30% over the past year, which is a concern for growth trajectory.

Balance Sheet

The company maintains a solid equity position, with an equity ratio of 34.33% in 2024. The Debt-to-Equity Ratio stands at 1.26, reflecting moderate leverage. While stockholder equity has grown, the total assets have decreased, which might indicate asset optimization or divestment.

Cash Flow

The cash flow position has improved significantly, with free cash flow turning positive at 289.00 million in 2024 from a negative position. Operating Cash Flow to Net Income Ratio is healthy at 3.24, indicating strong cash generation relative to net income. The company has effectively managed capital expenditures and financing activities.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.26B	2.45B	3.46B	3.42B	3.59B	3.43B
	Gross Profit
928.93M	717.42M	682.74M	178.76M	806.04M	897.54M
	EBIT
350.98M	121.00M	49.82M	-1.27B	260.62M	312.96M
	EBITDA
432.54M	196.20M	142.31M	-1.23B	276.82M	308.93M
	Net Income Common Stockholders
18.73M	92.26M	-236.13M	-1.89B	825.46M	224.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
979.79M	1.33B	1.03B	1.20B	1.85B	1.06B
	Total Assets
1.86B	2.15B	2.06B	3.00B	3.71B	2.38B
	Total Debt
810.19M	925.44M	919.26M	1.19B	437.09M	240.20M
	Net Debt
-169.60M	-404.67M	-110.15M	-9.62M	-1.41B	-823.64M
	Total Liabilities
1.21B	1.41B	1.43B	2.57B	1.35B	1.33B
	Stockholders Equity
646.30M	736.87M	629.76M	427.87M	2.37B	1.04B
Cash Flow		Free Cash Flow
188.82M	289.00M	-334.78M	-1.27B	-2.96M	504.04M
	Operating Cash Flow
188.82M	298.89M	-331.24M	-890.00M	17.03M	532.93M
	Investing Cash Flow
0.00	248.36M	-255.16M	-399.57M	83.52M	-45.56M
	Financing Cash Flow
0.00	13.44M	152.31M	645.75M	684.91M	-17.32M

WonderPlanet Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 984.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4199, the sentiment is Neutral. The current price of 984 is below the 20-day moving average (MA) of 1018.70, above the 50-day MA of 973.16, and above the 200-day MA of 850.19, indicating a neutral trend. The MACD of -3.99 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 15.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4199.

WonderPlanet Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5028	80 Outperform	¥2.87B	24.23		―	28.48%	159.39%
5256	68 Neutral	¥2.85B	17.00		―	6.62%	13.88%
7035	62 Neutral	¥2.77B	22.98		―	-36.63%	-214.65%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
4199	60 Neutral	¥2.58B	223.88		―	-22.80%	-147.34%
2334	60 Neutral	¥4.68B	―		―	-17.53%	-928.54%
4052	52 Neutral	¥2.57B	17,051.28		―	16.45%	―