WingArc1st Inc. (4432) AI Stock Analysis

• Market Cap: ¥119.53B
• Dividend Yield: 2.66%
• Average Volume (3M): 80.93K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.73
• 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: 79,870
• 30 Day Avg. Volume: 80,930
• 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: 74 Outperform
• Price Target: ¥3,976.00 ▲(30.57% Upside)

WingArc1st Inc. benefits from strong financial performance and positive technical indicators, though valuation is moderate. The absence of significant earnings call insights or corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth reflects the company's ability to expand its market presence and increase sales, supporting long-term business sustainability.

Profitability

High profitability margins indicate efficient operations and strong pricing power, which are crucial for maintaining competitive advantages.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, enabling the company to invest in growth opportunities without excessive risk.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to fund new projects or return capital to shareholders, impacting future growth prospects.

Margin Pressures

Decreasing margins could indicate rising costs or pricing challenges, which may affect profitability if not addressed effectively.

Earnings Per Share Decline

A decline in EPS growth suggests potential challenges in maintaining profitability, which could impact investor confidence and stock performance.

WingArc1st Inc. Business Overview & Revenue Model

Company Description

WingArc1st Inc. (4432) is a leading provider of data analytics and business intelligence solutions in Japan. The company specializes in software applications that enable organizations to visualize, analyze, and leverage their data for informed decision-making. Its core products include data visualization tools, reporting solutions, and cloud-based analytics services, catering to various sectors such as finance, manufacturing, and healthcare.

How the Company Makes Money

WingArc1st generates revenue primarily through the sale of software licenses and subscription services for its analytics platforms. The company offers both on-premises and cloud-based solutions, allowing businesses to choose the model that best fits their needs. Additionally, WingArc1st earns income from maintenance and support services, as well as consulting services that help organizations implement and optimize their use of the company's software. Strategic partnerships with other technology firms and system integrators enhance its market reach and contribute to its revenue streams by facilitating bundled offerings and cross-selling opportunities.

WingArc1st Inc. Financial Statement Overview

Summary

WingArc1st Inc. shows strong revenue growth and profitability with efficient operations and a solid balance sheet. However, a decline in free cash flow growth and slight margin pressures should be monitored.

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.90B	28.71B	25.75B	22.35B	19.83B	18.29B
Gross Profit	24.38B	25.80B	25.75B	22.35B	19.83B	13.70B
EBITDA	9.78B	10.12B	9.01B	7.51B	7.57B	6.40B
Net Income	5.65B	5.93B	5.41B	4.40B	4.35B	2.45B
Balance Sheet
Total Assets	69.18B	68.44B	65.95B	62.55B	58.92B	55.91B
Cash, Cash Equivalents and Short-Term Investments	14.14B	14.72B	13.04B	11.22B	9.05B	5.19B
Total Debt	8.55B	8.56B	9.94B	12.21B	14.19B	16.16B
Total Liabilities	27.21B	26.59B	26.85B	27.98B	28.30B	30.23B
Stockholders Equity	41.92B	41.79B	39.07B	34.52B	30.54B	25.68B
Cash Flow
Free Cash Flow	7.37B	7.81B	6.77B	6.31B	5.94B	4.45B
Operating Cash Flow	7.89B	8.20B	7.84B	6.87B	6.44B	4.95B
Investing Cash Flow	-1.25B	-1.60B	-1.60B	-1.02B	-532.55M	-134.88M
Financing Cash Flow	-5.45B	-4.86B	-4.46B	-3.73B	-2.08B	-4.65B

WingArc1st Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3045.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4432, the sentiment is Neutral. The current price of 3045 is below the 20-day moving average (MA) of 3480.75, below the 50-day MA of 3342.50, and below the 200-day MA of 3561.25, indicating a neutral trend. The MACD of 44.17 indicates Positive momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 48.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥99.64B	30.41	―	1.23%	-6.04%	-24.88%
4432	74 Outperform	¥119.53B	22.74	―	2.66%	5.22%	-6.62%
4071	74 Outperform	¥98.71B	29.31	―	1.23%	22.78%	7.57%
4776	72 Outperform	¥150.94B	23.78	―	0.91%	26.47%	142.77%
4477	64 Neutral	¥38.76B	67.42	―	―	27.97%	-5.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4259	61 Neutral	¥60.35B	―	―	―	8.98%	-581.59%

WingArc1st Inc. Corporate Events

WingArc1st Inc. Reports Decline in Semi-Annual Financial Results

WingArc1st Inc. reported a decline in its financial performance for the six months ended August 31, 2025, with revenue decreasing by 1.1% and operating profit dropping by 17.2% compared to the previous year. Despite the downturn, the company maintains a stable financial position with a slight increase in total assets and equity, and it has announced a consistent dividend forecast, indicating confidence in its long-term growth strategy.

The most recent analyst rating on (JP:4432) stock is a Hold with a Yen3301.00 price target. To see the full list of analyst forecasts on WingArc1st Inc. stock, see the JP:4432 Stock Forecast page.