WITZ Corp. (4440) AI Stock Analysis

• Market Cap: ¥6.18B
• Dividend Yield: 1.35%
• Average Volume (3M): 29.24K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.72
• Revenue Growth: 39.66%
• EPS Growth: 57.28%
• Country: JP
• Employees: 288
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 41.61
• Shares Outstanding: 4,176,000
• 10 Day Avg. Volume: 49,840
• 30 Day Avg. Volume: 29,240
• PEG Ratio: 0.22
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 10.97
• 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: 80 Outperform
• Price Target: ¥1,702.00 ▲(56.43% Upside)

The score is driven primarily by strong financial health (rapidly improving revenue with solid margins and essentially no debt) and attractive valuation (low P/E with a dividend). Technicals are supportive given the strong uptrend, but very overbought RSI/Stoch readings increase near-term pullback risk and temper the overall score.

Positive Factors

Sustained revenue acceleration

Revenue nearly doubled from 2020–2025, with especially strong growth in 2024–2025. This durable top-line expansion indicates successful product-market fit and scale benefits, supporting long-term investment in R&D, sales capacity, and competitive positioning.

Solid, category-competitive margins

Margins in 2025 are healthy for an application software firm, showing the business can convert sales into operating profits. Sustained mid-to-high gross margins with double-digit operating margin imply pricing power and efficient cost structure that support durable cash generation.

Exceptionally conservative balance sheet

Effectively zero debt and rising equity provide resilience to downturns and reduce refinancing risk. Strengthened ROE shows capital is being deployed profitably, enabling stable operations and flexibility to fund organic initiatives without leverage dependence.

Negative Factors

Margin variability over time

Historical swings in net margin point to variability in cost control, pricing or product mix. That inconsistency reduces earnings predictability and may indicate exposure to competitive or cost pressures that could limit consistent profit expansion over the medium term.

Moderate cash conversion relative to revenue

Operating cash flow at mid-single-digit to low-teens percent of revenue suggests working-capital swings and less efficient cash conversion. Even with positive free cash flow, modest conversion limits excess cash for large-scale reinvestment or accelerated capital deployment without changing working-capital dynamics.

Reliance on internal capital due to no leverage

An unlevered balance sheet reduces risk but constrains options: funding rapid expansion, big M&A, or large capex may be slower absent external financing. Dependence on internal cash can limit pace of growth relative to competitors who use moderate leverage strategically.

WITZ Corp. Business Overview & Revenue Model

Company Description

WITZ Corporation engages in the service design and software development businesses in Japan. The company offers Jasmy Personal Data Locker, an entrance/exit management system that provides valuable information while protecting personal information using blockchain technology for the management of stakeholders, related parties, and visitors at sporting and music events, and other events; automobile cyber security solutions; product – security incident response team (P-SIRT) services; and Kitahiro Ride, which combines a demand taxi and an electric cart to provide a transportation service between the homes of users living in the target area and Kitahiroshima Station. It also provides Intersection risk prediction systems for risk visualization using sensors; AUTOSAR Adaptive Platform, which includes advanced and diverse sensor information handling, the need for service-oriented dynamic communication, ensuring security as external connections grow, and upgrading over-the-air applications; virtual space technology for automobile development; and simulation development technology. The company was incorporated in 1997 and is headquartered in Nagoya, Japan.

How the Company Makes Money

WITZ Corp. generates revenue primarily through a subscription-based model for its software as a service (SaaS) offerings. Customers pay recurring fees to access the company's suite of cloud-based applications, which are designed to streamline business operations and improve data-driven decision-making. Key revenue streams include enterprise licenses, custom software development contracts, and consulting services that provide tailored solutions to meet specific business needs. Additionally, WITZ Corp. partners with major technology firms to integrate its tools with existing systems, further expanding its market reach and enhancing its revenue potential.

WITZ Corp. Financial Statement Overview

Summary

Strong revenue acceleration (2.22B in 2020 to 4.86B in 2025) with solid profitability (2025 operating margin ~12%, net margin ~8.7%) and an exceptionally conservative balance sheet with effectively zero debt. Cash flow is positive and improving, though cash conversion is not consistently strong and margins have shown variability versus earlier peak levels.

Income Statement

Revenue has accelerated meaningfully, rising from 2.22B (2020) to 4.86B (2025), with especially strong growth in 2024–2025. Profitability is solid for the category: 2025 gross margin is ~37% and operating margin is ~12%, with net margin ~8.7%. The main drawback is margin variability—net margin was ~10% in 2020, dipped mid-period, and while it has improved recently, it remains below earlier peak levels.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is effectively zero in recent years, resulting in no meaningful leverage risk. Equity has steadily grown (to ~2.83B in 2025) alongside asset growth, and returns on equity have strengthened to ~15% in 2025 from mid-single digits in 2023. The primary limitation is that, with no debt, future growth is more reliant on internally generated capital rather than financial leverage (which can be either a strength or a constraint depending on growth opportunities).

Cash Flow

Cash generation is positive and improving: operating cash flow rose to ~571M in 2025 and free cash flow to ~489M, and free cash flow is consistently below operating cash flow as expected. Free cash flow tracks earnings reasonably well (free cash flow is ~86% of net income in 2025), supporting earnings quality. The key weakness is that operating cash flow covers a relatively modest portion of the revenue base (mid-single-digit to low-teens percent range historically, and ~12% in 2025), indicating working-capital swings and/or cash conversion that is good but not consistently strong.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.72B	4.86B	3.48B	2.50B	2.35B	2.20B
Gross Profit	1.71B	1.81B	1.22B	892.42M	887.06M	770.04M
EBITDA	643.28M	673.72M	430.11M	225.43M	288.13M	313.46M
Net Income	446.21M	424.22M	275.08M	133.49M	175.83M	206.17M
Balance Sheet
Total Assets	3.78B	4.07B	3.56B	2.92B	2.86B	2.65B
Cash, Cash Equivalents and Short-Term Investments	2.02B	2.15B	1.77B	1.92B	2.06B	2.05B
Total Debt	0.00	0.00	0.00	0.00	0.00	632.00K
Total Liabilities	1.04B	1.23B	1.08B	611.43M	559.44M	527.98M
Stockholders Equity	2.74B	2.83B	2.45B	2.28B	2.27B	2.10B
Cash Flow
Free Cash Flow	0.00	489.48M	294.54M	204.25M	156.92M	252.27M
Operating Cash Flow	0.00	571.37M	355.54M	248.28M	206.78M	257.37M
Investing Cash Flow	0.00	85.39M	170.60M	-459.60M	-136.53M	-219.79M
Financing Cash Flow	0.00	-79.72M	-272.68M	-128.86M	-58.00M	14.12M

WITZ Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1088.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4440, the sentiment is Positive. The current price of 1088 is below the 20-day moving average (MA) of 1137.00, below the 50-day MA of 1091.98, and below the 200-day MA of 1163.60, indicating a bullish trend. The MACD of 49.28 indicates Negative momentum. The RSI at 83.85 is Negative, neither overbought nor oversold. The STOCH value of 90.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4440.

WITZ Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4440	80 Outperform	¥6.18B	11.70	―	1.35%	39.66%	57.28%
3816	71 Outperform	¥4.37B	12.01	7.21%	1.70%	-0.23%	23.25%
3826	70 Outperform	¥5.29B	7.33	―	2.28%	―	―
3965	69 Neutral	¥4.78B	11.89	―	2.20%	18.47%	155.94%
4060	64 Neutral	¥5.86B	20.71	―	0.57%	21.03%	32.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3681	48 Neutral	¥3.99B	-2.31	-282.36%	―	-8.32%	71.98%

WITZ Corp. Corporate Events

WITZ Corporation Reports Strong Financial Growth in FY2025

WITZ Corporation reported a significant increase in its financial performance for the fiscal year ended August 31, 2025, with net sales rising by 39.7% and operating profit doubling. The company’s strong financial position is further supported by a healthy equity ratio and increased cash and cash equivalents, indicating robust operational efficiency and potential for future growth.