WingArc1st Inc. (4432) AI Stock Analysis

• Market Cap: ¥130.63B
• Dividend Yield: 2.24%
• Average Volume (3M): 78.80K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.65
• Revenue Growth: 11.37%
• EPS Growth: 5.43%
• Country: JP
• Employees: 881
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 42.36
• Shares Outstanding: 34,968,070
• 10 Day Avg. Volume: 70,220
• 30 Day Avg. Volume: 78,796
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,144.00
• Price Target Upside: 10.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥4,144.00 ▲(10.36% Upside)

WingArc1st Inc. demonstrates strong financial performance with impressive revenue and profit growth, which is the most significant factor in its overall score. The technical analysis presents mixed signals, with some bearish momentum indicators. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

WingArc1st Inc. Business Overview & Revenue Model

Company Description

WingArc1st Inc. (4432) is a Japanese company specializing in data empowerment solutions, primarily in the fields of business intelligence and data analytics. The company offers a suite of software products designed to help businesses leverage data for informed decision-making, efficiency improvements, and strategic planning. With a focus on both domestic and international markets, WingArc1st provides innovative tools that facilitate data visualization, analysis, and integration across various industries.

How the Company Makes Money

WingArc1st Inc. generates revenue through the sale and licensing of its software products and solutions. Its key revenue streams include subscription fees for its cloud-based services, one-time sales of software licenses, and maintenance and support services. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. Consulting and implementation services provide additional income, as businesses often require assistance in integrating WingArc1st's solutions into their existing systems. The company's focus on innovation and customer-centric solutions helps maintain a steady flow of revenue from both new and returning clients.

WingArc1st Inc. Financial Statement Overview

Summary

WingArc1st Inc. presents a strong financial profile with impressive revenue and profit growth, supported by effective cost management and operational efficiency. The balance sheet reflects greater financial stability with reduced leverage, and strong cash flow generation adds to resilience. However, there is room for improvement in maximizing Return on Equity.

Income Statement

WingArc1st Inc. has demonstrated a strong revenue growth trajectory, with Total Revenue increasing from ¥18.7B in 2020 to ¥28.7B in 2025. Gross Profit Margin remains high, indicating effective cost management, while Net Profit Margin has improved from 13.1% in 2020 to 20.6% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, supporting strong operational performance.

Balance Sheet

The company's balance sheet reflects a solid Equity Ratio, improving from 40.6% in 2020 to 61.0% in 2025, suggesting increased financial stability. The Debt-to-Equity Ratio has decreased over time, indicating reduced leverage, which is favorable for risk management. However, the Return on Equity, while stable, shows potential for further improvement to maximize shareholder returns.

Cash Flow

WingArc1st Inc. has maintained a healthy Free Cash Flow, with a notable increase from ¥6.1B in 2020 to ¥7.8B in 2025, highlighting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio remains robust, ensuring sufficient liquidity to support operations and growth initiatives. The company's strategic capital expenditure control further supports its positive cash flow position.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.71B	25.75B	22.35B	19.83B	18.29B
Gross Profit	25.80B	25.75B	22.35B	19.83B	13.30B
EBITDA	10.12B	9.01B	7.46B	7.57B	6.40B
Net Income	5.93B	5.41B	4.40B	4.35B	2.45B
Balance Sheet
Total Assets	68.44B	65.95B	62.55B	58.92B	55.91B
Cash, Cash Equivalents and Short-Term Investments	14.72B	13.04B	11.22B	9.05B	5.19B
Total Debt	8.56B	9.94B	12.21B	14.19B	16.16B
Total Liabilities	26.59B	26.85B	27.98B	28.30B	30.23B
Stockholders Equity	41.79B	39.07B	34.52B	30.54B	25.68B
Cash Flow
Free Cash Flow	7.81B	6.77B	6.31B	5.94B	4.45B
Operating Cash Flow	8.20B	7.84B	6.87B	6.44B	4.95B
Investing Cash Flow	-1.60B	-1.60B	-1.02B	-532.55M	-134.88M
Financing Cash Flow	-4.86B	-4.46B	-3.73B	-2.08B	-4.65B

WingArc1st Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3755.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4432, the sentiment is Positive. The current price of 3755 is above the 20-day moving average (MA) of 3644.25, below the 50-day MA of 3856.20, and above the 200-day MA of 3577.77, indicating a neutral trend. The MACD of -43.93 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4432.

WingArc1st Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2326	76 Outperform	¥106.94B	32.91		1.15%	-10.59%	-26.51%
4071	74 Outperform	¥105.74B	26.26		0.68%	27.18%	35.88%
4432	73 Outperform	¥130.63B	23.17		2.24%	11.37%	5.43%
4776	72 Outperform	¥180.07B	34.27		0.76%	22.97%	107.52%
4477	64 Neutral	¥47.36B	137.59		―	30.45%	56.35%
Sector *	61 Neutral	$36.26B	7.13	-7.27%	1.97%	7.78%	-8.61%
4259	61 Neutral	¥38.45B	―		―	10.39%	-322.87%

WingArc1st Inc. Corporate Events

WingArc1st Inc. Revises Earnings Forecasts Following Subsidiary Consolidation

WingArc1st Inc. has revised its earnings forecasts for the fiscal year ending February 28, 2026, due to the consolidation of WingArcNEX Inc. as a wholly owned subsidiary. The updated forecast predicts a 3% increase in revenue and slight increases in EBITDA and profit attributable to equity holders, indicating positive growth and strategic expansion.

WingArc1st Inc. Reports Q1 2025 Financial Results and Positive Outlook

WingArc1st Inc. reported its consolidated financial results for the three months ending May 31, 2025, showing a slight increase in revenue by 2.7% compared to the previous year, reaching 7,314 million yen. However, the company experienced a decline in operating profit and profit before income taxes, with decreases of 13.1% and 13.2% respectively. Despite these challenges, the company has revised its earnings forecasts for the fiscal year ending February 28, 2026, anticipating an 8.7% increase in revenue and an 8.9% increase in operating profit, indicating a positive outlook for future growth.

WingArc1st Inc. Completes Acquisition of WingArc NEX Inc.

WingArc1st Inc. has completed the acquisition of WingArc NEX Inc., making it a wholly owned subsidiary. This strategic move aims to strengthen WingArc1st’s position in the municipal CMS market and accelerate digital transformation in front-end municipal services, contributing to sustainable growth. The financial results of WingArc NEX Inc. will be included in WingArc1st’s consolidated financial statements from the second quarter of the fiscal year ending February 2026.

WingArc1st Strengthens Ties with ITOCHU and Toshiba for Digital Expansion

WingArc1st Inc. has announced its relationship with ITOCHU Corporation and Toshiba Digital Solutions Corporation as controlling shareholders. The company emphasizes its independence while collaborating with these entities to accelerate digital transformation and expand data solutions. This strategic alignment aims to ensure sustainable growth and maximize shareholder value, while maintaining fair and appropriate conditions for minority shareholders in transactions.