WonderPlanet Inc. (4199) AI Stock Analysis

• Market Cap: ¥3.12B
• Dividend Yield: N/A
• Average Volume (3M): 38.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -5.44%
• EPS Growth: -242.43%
• Country: JP
• Employees: 175
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -47.26
• Shares Outstanding: 2,598,212
• 10 Day Avg. Volume: 48,990
• 30 Day Avg. Volume: 38,920
• PEG Ratio: 0.10
• Price to Book (P/B): 5.29
• Price to Sales (P/S): 1.36
• P/FCF Ratio: -9.81
• 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: 48 Neutral
• Price Target: ¥1,212.00 ▲(64.23% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is held down primarily by weak financial performance (shrinking revenue, ongoing losses, higher leverage, and negative operating/free cash flow). Technical indicators are a meaningful offset with strong trend/momentum, but valuation remains challenged given the negative P/E and lack of dividend yield data.

Positive Factors

Diversified monetization

Multiple, complementary revenue streams (in‑app purchases, ads, subscriptions and partnerships) create durable monetization levers. This reduces dependence on any single title, helps smooth revenue cyclicality, and supports longer-term ARPU and lifetime value improvements through analytics-driven optimization.

Mobile game product focus

A concentrated product focus on mobile games and a portfolio of popular titles provides structural advantages: IP, design expertise, and user engagement patterns that produce long revenue tails, enable content re-use and cross-promotion, and support competitive defensibility in a large, growing mobile gaming market.

Lean team and product analytics

A relatively small headcount combined with stated use of data analytics and user feedback supports a scalable, low‑fixed‑cost operating model. This structure can preserve margins as titles scale, enable faster iteration on content, and limit overhead when revenue is variable, aiding long‑term operational resilience.

Negative Factors

Declining revenue & margins

Steep top‑line decline and persistent negative operating profitability indicate structural issues in product monetization or cost control. Sustained revenue shrinkage reduces scale economies, pressures unit economics, and constrains reinvestment in content and user acquisition necessary to restore growth and long‑term competitiveness.

Elevated leverage

High leverage with negative ROE limits financial flexibility and raises interest and refinancing risk. When combined with losses, elevated debt constrains strategic choices (M&A, marketing spend, development budgets), increases vulnerability to macro shocks, and can force dilutive or asset‑sale remedies over the medium term.

Negative operating and free cash flow

Consistent negative operating and free cash flow undermines the company's ability to self‑fund game development and marketing. Over time this increases reliance on external financing, heightens liquidity and refinancing risk, and can curtail content investment that is critical to restoring growth and retaining users.

WonderPlanet Inc. Business Overview & Revenue Model

Company Description

WonderPlanet Inc. engages in the development and sale of mobile games in Japan and worldwide. It provides games for iOS and android. The company was founded in 2012 and is headquartered in Nagoya, Japan.

How the Company Makes Money

WonderPlanet Inc. generates revenue primarily through in-app purchases and advertisements within its mobile games. The company designs its games with features that encourage players to make micropayments for virtual goods, enhancements, or additional levels. Additionally, partnerships with advertisers allow WonderPlanet to monetize user engagement by displaying ads within its gaming platforms. The company's ability to attract a large user base and maintain high levels of user interaction is crucial to its revenue generation strategy.

WonderPlanet Inc. Financial Statement Overview

Summary

Weak fundamentals: revenue declined 28.9% most recently, profitability is negative (net profit and EBIT margins), leverage is elevated (debt-to-equity 1.96) with negative ROE, and cash generation is poor with negative operating and free cash flow.

Income Statement

WonderPlanet Inc. has experienced a significant decline in revenue growth, with a notable drop of 28.9% in the most recent year. The company also reported negative net profit and EBIT margins, indicating operational challenges. Historically, the company had better profitability, but recent trends show a downturn in financial performance.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.96, suggesting higher leverage and potential financial risk. Return on equity is negative, reflecting losses. The equity ratio has decreased, indicating reduced financial stability compared to previous years.

Cash Flow

WonderPlanet Inc. has negative operating and free cash flows, with a substantial decline in free cash flow growth. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The company needs to improve cash generation to support its operations.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	3.26B	2.32B	2.45B	3.46B	3.42B	3.59B
Gross Profit	928.93M	483.08M	717.42M	682.74M	178.76M	806.04M
EBITDA	432.54M	-50.99M	196.20M	142.31M	-1.23B	276.82M
Net Income	18.73M	-131.58M	92.26M	-236.13M	-1.89B	825.46M
Balance Sheet
Total Assets	1.86B	1.98B	2.15B	2.06B	3.00B	3.71B
Cash, Cash Equivalents and Short-Term Investments	979.79M	1.26B	1.33B	1.03B	1.20B	1.85B
Total Debt	810.19M	1.17B	925.44M	919.26M	1.19B	437.09M
Total Liabilities	1.21B	1.39B	1.41B	1.43B	2.57B	1.35B
Stockholders Equity	646.30M	595.37M	736.87M	629.76M	427.87M	2.37B
Cash Flow
Free Cash Flow	188.82M	-320.96M	289.00M	-334.78M	-1.27B	-2.96M
Operating Cash Flow	188.82M	-310.08M	298.89M	-331.24M	-890.00M	17.03M
Investing Cash Flow	0.00	4.13M	248.36M	-255.16M	-399.57M	83.52M
Financing Cash Flow	0.00	231.02M	13.44M	152.31M	645.75M	684.91M

WonderPlanet Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 738.00
• 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 738 is below the 20-day moving average (MA) of 1451.55, below the 50-day MA of 1405.24, and below the 200-day MA of 1098.84, indicating a neutral trend. The MACD of -28.94 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 19.00 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
5031	71 Outperform	¥4.37B	583.41	―	―	1.26%	-96.90%
4255	66 Neutral	¥4.20B	24.05	―	―	12.56%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4382	52 Neutral	¥12.93B	-173.88	―	―	16.29%	93.98%
2138	51 Neutral	¥6.56B	-15.24	―	―	-12.37%	12.44%
4199	48 Neutral	¥3.12B	-16.85	―	―	-5.44%	-242.43%
4424	45 Neutral	¥1.78B	-5.61	―	―	-20.74%	36.84%