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WingArc1st Inc. (JP:4432)
:4432
Japanese Market
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WingArc1st Inc. (4432) AI Stock Analysis

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JP:4432

WingArc1st Inc.

(4432)

Rating:69Neutral
Price Target:
¥4,079.00
▲(12.99%Upside)
WingArc1st Inc. exhibits strong financial performance with growth in revenue and profits, supported by effective cost management. However, technical analysis indicates bearish momentum, which impacts the overall score. Valuation suggests the stock is reasonably priced, with a moderate dividend yield offering additional appeal.

WingArc1st Inc. (4432) vs. iShares MSCI Japan ETF (EWJ)

WingArc1st Inc. Business Overview & Revenue Model

Company DescriptionWingArc1st Inc. (4432) is a leading provider of business software solutions, focusing primarily on data empowerment and visualization tools. The company offers a range of products designed to help businesses harness the power of their data, improve decision-making processes, and enhance operational efficiency. WingArc1st operates in sectors such as data management, business intelligence, and enterprise software, with its core offerings including data analytics platforms, visualization software, and business process automation solutions.
How the Company Makes MoneyWingArc1st Inc. generates revenue primarily through the sale of software licenses and subscription services for its data analytics and visualization products. The company offers both on-premise and cloud-based solutions, catering to a wide range of business needs and industries. In addition to software sales, WingArc1st earns income from consulting services, training, and support offered to help clients optimize their use of the company's products. Strategic partnerships with technology companies and resellers also play a significant role in expanding WingArc1st's market reach and contributing to its earnings. Furthermore, the company's focus on innovation and development of new features and products helps sustain its competitive edge and attract new 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
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue28.71B25.75B22.35B19.83B18.29B
Gross Profit25.80B25.75B22.35B19.83B13.30B
EBITDA10.12B9.01B7.46B7.57B6.40B
Net Income5.93B5.41B4.40B4.35B2.45B
Balance Sheet
Total Assets68.44B65.95B62.55B58.92B55.91B
Cash, Cash Equivalents and Short-Term Investments14.72B13.04B11.22B9.05B5.19B
Total Debt8.56B9.94B12.21B14.19B16.16B
Total Liabilities26.59B26.85B27.98B28.30B30.23B
Stockholders Equity41.79B39.07B34.52B30.54B25.68B
Cash Flow
Free Cash Flow7.81B6.77B6.31B5.94B4.45B
Operating Cash Flow8.20B7.84B6.87B6.44B4.95B
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
Negative
Last Price3610.00
Price Trends
50DMA
3868.10
Negative
100DMA
3764.20
Negative
200DMA
3549.55
Positive
Market Momentum
MACD
-105.85
Positive
RSI
33.81
Neutral
STOCH
21.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4432, the sentiment is Negative. The current price of 3610 is below the 20-day moving average (MA) of 3835.00, below the 50-day MA of 3868.10, and above the 200-day MA of 3549.55, indicating a neutral trend. The MACD of -105.85 indicates Positive momentum. The RSI at 33.81 is Neutral, neither overbought nor oversold. The STOCH value of 21.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4432.

WingArc1st Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥109.32B33.46
1.09%-5.73%49.33%
74
Outperform
¥93.58B26.66
0.72%25.27%9.70%
72
Outperform
¥181.22B41.78
0.76%16.68%43.49%
69
Neutral
¥124.43B21.95
2.37%11.37%5.43%
64
Neutral
¥46.66B101.39
36.82%
57
Neutral
HK$14.57B5.76-5.77%4.75%9.65%-43.80%
55
Neutral
¥38.80B
17.02%-314.32%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4432
WingArc1st Inc.
3,610.00
1,001.52
38.39%
JP:2326
Digital Arts Inc.
7,730.00
3,058.76
65.48%
JP:4071
Plus Alpha Consulting Co. LTD.
2,220.00
314.74
16.52%
JP:4259
ExaWizards Inc.
448.00
135.00
43.13%
JP:4477
BASE, Inc.
393.00
130.00
49.43%
JP:4776
Cybozu, Inc.
3,950.00
2,201.14
125.86%

WingArc1st Inc. Corporate Events

WingArc1st Inc. Revises Earnings Forecasts Following Subsidiary Consolidation
Jul 10, 2025

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
Jul 10, 2025

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.
Jun 30, 2025

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
May 29, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 11, 2025