WITZ Corp. (4440) AI Stock Analysis

• Market Cap: ¥6.49B
• Dividend Yield: 1.35%
• Average Volume (3M): 29.24K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.71
• 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: 77 Outperform
• Price Target: ¥1,936.00 ▲(77.94% Upside)

Score is driven primarily by strong financial performance (rapid revenue growth, solid margins, and an exceptionally low-risk balance sheet) and supportive valuation (low P/E). The main constraint is technical risk: price momentum is strong but indicators are overbought, increasing the chance of a near-term pullback.

Positive Factors

Sustained Revenue Acceleration

Multi-year revenue acceleration more than doubles scale over five years, evidencing durable market demand and product traction. Higher recurring top-line supports investment in R&D and sales, improves fixed-cost absorption, and enhances long-term cash generation potential.

Exceptionally Conservative Balance Sheet

Near-zero leverage materially reduces solvency and refinancing risk, providing resilience through downturns and strategic optionality. Improving ROE indicates the company is deploying capital more efficiently, supporting sustainable returns and allowing patient capital allocation.

Improving Cash Generation and FCF Quality

Rising operating cash flow and high FCF-to-income ratio signal earnings quality and reliable internal funding for capex, dividends, or buybacks. Consistent positive FCF underpins durable financial flexibility and reduces dependence on external financing.

Negative Factors

Margin Variability Over Time

Volatile margins weaken predictability of long-term profitability and complicate planning for reinvestment and payouts. Persistent swings suggest sensitivity to cost structure or pricing dynamics, raising the risk that earnings and cash flow may not scale linearly with revenue.

Modest Cash Conversion Relative to Revenue

An OCF-to-revenue ratio near low-teens implies working-capital dynamics or limited cash margins versus sales. This constrains the pace at which operating growth can be self-funded and increases sensitivity to receivables or inventory swings over medium-term horizons.

Limited Financial Leverage Could Constrain Rapid Expansion

Zero leverage reduces risk but limits access to low-cost external capital for large, time-sensitive investments or M&A. If rapid scaling or acquisitive moves are required, reliance on internal cash may slow execution and cede opportunities to competitors using leverage.

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 financial foundation with accelerating revenue growth (2020–2025) and solid profitability (2025 operating margin ~12%, net margin ~8.7%). Balance sheet is exceptionally conservative with effectively zero debt and improving ROE (~15% in 2025). Main offsets are margin variability over time and only moderately consistent cash conversion relative to revenue.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 1494.50, below the 50-day MA of 1246.46, and below the 200-day MA of 1211.94, indicating a bullish trend. The MACD of 106.66 indicates Positive momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 23.98 is Neutral, 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	77 Outperform	¥6.49B	12.29	―	1.35%	39.66%	57.28%
3816	71 Outperform	¥4.36B	12.00	7.21%	1.70%	-0.23%	23.25%
3826	70 Outperform	¥5.57B	7.35	―	2.28%	―	―
3965	69 Neutral	¥4.58B	11.36	―	2.20%	18.47%	155.94%
4060	64 Neutral	¥6.24B	22.07	―	0.57%	21.03%	32.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3681	48 Neutral	¥3.86B	-2.23	-282.36%	―	-8.32%	71.98%

WITZ Corp. Corporate Events

WITZ Corp. Delivers Strong Q1 Growth and Affirms FY2026 Outlook with Higher Dividend Plan

WITZ Corporation reported strong consolidated results for the three months ended November 30, 2025, with net sales rising 34.6% year on year to ¥1,416 million and profit attributable to owners of parent nearly doubling to ¥165 million, driving earnings per share up to ¥41.61. The company’s financial position remained solid with an equity ratio of 68.9%, and it maintained its full‑year forecast for fiscal 2026, targeting ¥5,600 million in net sales and modest profit growth, alongside a planned increase in the annual dividend to ¥18 per share, signaling continued confidence in earnings and shareholder returns.

The most recent analyst rating on (JP:4440) stock is a Buy with a Yen1717.00 price target. To see the full list of analyst forecasts on WITZ Corp. stock, see the JP:4440 Stock Forecast page.

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.