WingArc1st Inc. (4432) AI Stock Analysis

• Market Cap: ¥115.39B
• Dividend Yield: 2.77%
• Average Volume (3M): 92.81K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.72
• Revenue Growth: 5.22%
• EPS Growth: -6.62%
• Country: JP
• Employees: 881
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 42.48
• Shares Outstanding: 34,996,170
• 10 Day Avg. Volume: 70,430
• 30 Day Avg. Volume: 92,813
• PEG Ratio: 2.29
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 4.16
• P/FCF Ratio: 15.31
• 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): 189.4
• Revenue Forecast (FY): ¥31.35B

• Rating: 64 Neutral
• Price Target: ¥3,301.00 ▲(8.41% Upside)

WingArc1st Inc. has strong financial performance and reasonable valuation, but the bearish technical indicators significantly impact the overall score. The lack of earnings call data and corporate events limits additional insights.

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. shows strong revenue growth and profitability with efficient operations and a solid balance sheet. However, the decline in free cash flow growth and slight margin pressures need monitoring.

Income Statement

WingArc1st Inc. demonstrates strong profitability with a high gross profit margin of 87.28% TTM and a consistent net profit margin around 20.65%. Revenue growth is robust at 67.5% TTM, indicating significant expansion. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, a slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.20 TTM, indicating prudent leverage management. Return on equity is strong at 13.64%, showcasing effective use of equity capital. The equity ratio is stable, reflecting a balanced asset structure. However, a gradual increase in debt levels over the years warrants monitoring.

Cash Flow

Operating cash flow remains strong, but free cash flow growth has turned negative at -2.97% TTM, which could impact future liquidity. The operating cash flow to net income ratio is moderate at 0.55, suggesting room for improvement in cash generation efficiency. The free cash flow to net income ratio is high at 92.61%, indicating good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2022	Dec 2021	Dec 2020	Dec 2018
Income Statement
Total Revenue	28.90B	28.71B	22.35B	19.83B	18.29B	17.29B
Gross Profit	24.38B	25.80B	22.35B	19.83B	13.70B	14.37B
EBITDA	9.78B	10.12B	7.51B	7.57B	6.40B	6.11B
Net Income	5.65B	5.93B	4.40B	4.35B	2.45B	3.29B
Balance Sheet
Total Assets	69.18B	68.44B	62.55B	58.92B	55.91B	54.70B
Cash, Cash Equivalents and Short-Term Investments	14.14B	14.72B	11.22B	9.05B	5.19B	3.44B
Total Debt	8.55B	8.56B	12.21B	14.19B	16.16B	21.94B
Total Liabilities	27.21B	26.59B	27.98B	28.30B	30.23B	35.45B
Stockholders Equity	41.92B	41.79B	34.52B	30.54B	25.68B	19.25B
Cash Flow
Free Cash Flow	7.37B	7.81B	6.31B	5.94B	4.45B	2.47B
Operating Cash Flow	7.89B	8.20B	6.87B	6.44B	4.95B	3.34B
Investing Cash Flow	-1.25B	-1.60B	-1.02B	-532.55M	-134.88M	-1.65B
Financing Cash Flow	-5.45B	-4.86B	-3.73B	-2.08B	-4.65B	-2.96B

WingArc1st Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3045.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 3045 is below the 20-day moving average (MA) of 3254.75, below the 50-day MA of 3290.92, and below the 200-day MA of 3543.21, indicating a neutral trend. The MACD of 26.78 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 63.54 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	¥104.27B	31.82	―	1.23%	-6.04%	-24.88%
4071	74 Outperform	¥102.82B	25.34	―	1.21%	27.18%	35.88%
4776	72 Outperform	¥137.59B	26.19	―	1.00%	22.97%	107.52%
4432	64 Neutral	¥115.39B	21.95	―	2.77%	5.22%	-6.62%
4477	64 Neutral	¥42.77B	74.39	―	―	27.97%	-5.25%
4259	63 Neutral	¥55.18B	―	―	―	10.39%	-322.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.