WonderPlanet Inc. (4199) AI Stock Analysis

• Market Cap: ¥3.06B
• Dividend Yield: N/A
• Average Volume (3M): 94.70K
• Price to Earnings (P/E): 223.9
• Beta (1Y): 1.18
• Revenue Growth: -4.31%
• EPS Growth: -525.60%
• Country: JP
• Employees: 175
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): -45.84
• Shares Outstanding: 2,598,212
• 10 Day Avg. Volume: 221,810
• 30 Day Avg. Volume: 94,700
• PEG Ratio: 0.02
• Price to Book (P/B): 4.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 80.99
• 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: ¥1,093.00
• Price Target Upside: -5.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥1,171.00 ▲(1.47%Upside)

WonderPlanet Inc.'s stock score is moderately positive due to strong financial performance driven by improved profitability and cash flow, along with bullish technical indicators. However, the valuation is a concern due to a negative P/E ratio and no dividend yield. Investors should consider the risks of revenue decline and moderate leverage.

WonderPlanet Inc. Business Overview & Revenue Model

Company Description

WonderPlanet Inc. is a Japanese company that specializes in the development and distribution of mobile gaming applications. The company operates within the digital entertainment sector, focusing on creating engaging and interactive gaming experiences for users worldwide. Its core products primarily include mobile games, with a strong emphasis on creativity and user engagement.

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

WonderPlanet Inc. has shown a strong recovery in profitability and cash generation, with improved cost management leading to better profit margins. The significant improvement in cash flow and a stable balance sheet further support this positive outlook. However, the decline in revenue and moderate leverage pose some 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.45B	3.46B	3.42B	3.59B	3.43B
Gross Profit	717.42M	682.74M	178.76M	806.04M	897.54M
EBITDA	196.20M	142.31M	-1.23B	276.82M	308.93M
Net Income	92.26M	-236.13M	-1.89B	825.46M	224.24M
Balance Sheet
Total Assets	2.15B	2.06B	3.00B	3.71B	2.38B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.03B	1.20B	1.85B	1.06B
Total Debt	925.44M	919.26M	1.19B	437.09M	240.20M
Total Liabilities	1.41B	1.43B	2.57B	1.35B	1.33B
Stockholders Equity	736.87M	629.76M	427.87M	2.37B	1.04B
Cash Flow
Free Cash Flow	289.00M	-334.78M	-1.27B	-2.96M	504.04M
Operating Cash Flow	298.89M	-331.24M	-890.00M	17.03M	532.93M
Investing Cash Flow	248.36M	-255.16M	-399.57M	83.52M	-45.56M
Financing Cash Flow	13.44M	152.31M	645.75M	684.91M	-17.32M

WonderPlanet Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1154.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4199, the sentiment is Positive. The current price of 1154 is above the 20-day moving average (MA) of 1043.90, above the 50-day MA of 1039.18, and above the 200-day MA of 862.66, indicating a bullish trend. The MACD of 53.90 indicates Negative momentum. The RSI at 67.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4199.

WonderPlanet Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5028	77 Outperform	¥3.24B	27.32		―	28.48%	159.39%
5256	75 Outperform	¥2.88B	17.22		―	6.62%	13.88%
7035	64 Neutral	¥3.21B	22.98		―	-36.80%	40.37%
Sector *	63 Neutral	$34.16B	5.47	-11.67%	1.85%	5.30%	-18.30%
4199	60 Neutral	¥3.06B	223.88		―	-4.31%	-525.60%
2334	60 Neutral	¥12.14B	―		―	-17.53%	-928.54%
4052	52 Neutral	¥2.23B	15,854.70		―	16.45%	―