WonderPlanet Inc. (4199) AI Stock Analysis

• Market Cap: ¥2.55B
• Dividend Yield: N/A
• Average Volume (3M): 38.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• 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: 41 Neutral
• Price Target: ¥917.00 ▲(24.25% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial performance (declining revenue, negative profitability, higher leverage, and negative operating/free cash flow). Technicals add further pressure with the stock trading below key moving averages and negative MACD, while valuation offers limited support due to loss-making results (negative P/E) and no dividend data.

Positive Factors

Recurring mobile monetization

WonderPlanet's core business relies on in-app purchases, ads and subscriptions, a durable freemium model that produces recurring, high-margin revenue per user. Over months, this monetization mix supports scalability and margin recovery if engagement and retention stabilize.

Lean development organization

A relatively small headcount implies a lean cost base and operational agility typical in successful mobile studios. This structure can enable faster iteration, lower fixed overhead and more efficient allocation of limited cash toward high-return content updates or marketing.

Established game portfolio and IP

Maintaining multiple popular titles creates durable advantages: user bases to cross-promote, IP reuse, and lower marginal costs to monetize existing players. Over a multi-month horizon, this content depth supports retention, recurring spend and lower acquisition costs versus single-title peers.

Negative Factors

Material revenue decline

A near-30% revenue drop is a persistent structural concern: it reduces cash available for content creation, marketing and platform support. If top-line contraction continues, the company will face harder trade-offs between growth investment and repairing margins or servicing liabilities.

Negative operating and free cash flow

Sustained negative operating and free cash flows undermine financial flexibility and force reliance on external funding or asset sales. Over months this limits the company's ability to sustain live-ops, run paid user acquisition, or invest in new titles—key drivers for mobile game recoveries.

Elevated leverage and weakened equity

High leverage paired with negative ROE raises solvency and refinancing risks. Interest and principal obligations will pressure cash flows and constrain strategic choices (M&A, marketing spend). In a cyclical gaming market, leverage amplifies downside if revenue recovery stalls.

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 fell 28.9% most recently, profitability is negative (net profit and EBIT margins), leverage is elevated (debt-to-equity 1.96) with negative ROE, and both operating and free cash flows are negative—indicating strained operating performance and cash generation.

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	481.55M	715.99M	676.42M	176.59M	804.52M
EBITDA	445.39M	-50.59M	198.24M	154.39M	-1.24B	273.50M
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	0.00	-320.96M	289.00M	-334.78M	-920.32M	-2.96M
Operating Cash Flow	0.00	-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: Negative
• Last Price: 738.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 738 is below the 20-day moving average (MA) of 1125.80, below the 50-day MA of 1337.96, and below the 200-day MA of 1098.19, indicating a bearish trend. The MACD of -98.28 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 39.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4199.

WonderPlanet Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4255	66 Neutral	¥4.12B	28.86	―	―	12.56%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5031	61 Neutral	¥4.16B	39.83	―	―	1.26%	-96.90%
4382	52 Neutral	¥12.50B	-90.49	―	―	16.29%	93.98%
2138	51 Neutral	¥5.96B	-8.89	―	―	-12.37%	12.44%
4424	45 Neutral	¥1.67B	-7.88	―	―	-20.74%	36.84%
4199	41 Neutral	¥2.55B	-4.15	―	―	-5.44%	-242.43%