Weathernews Inc. (4825) AI Stock Analysis

• Market Cap: ¥107.71B
• Dividend Yield: 1.48%
• Average Volume (3M): 74.59K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.61
• Revenue Growth: 5.68%
• EPS Growth: 27.44%
• Country: JP
• Employees: 1,152
• Sector: Communication Services
• Sector Strength: 96
• Industry: Internet Content & Information
• EPS (TTM): 43.34
• Shares Outstanding: 23,688,000
• 10 Day Avg. Volume: 63,300
• 30 Day Avg. Volume: 74,586
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,325.00
• Price Target Upside: -7.98% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥4,325.00 ▼(-7.98% Downside)

The overall score is driven primarily by strong financial performance, marked by revenue growth, profitability, and low debt. Technical analysis supports a positive trend, though valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events leaves these factors unconsidered.

Weathernews Inc. Business Overview & Revenue Model

Company Description

Weathernews Inc. (4825) is a global weather content and service company based in Japan. It specializes in providing comprehensive weather information and solutions tailored for various industries such as shipping, aviation, media, retail, and more. Leveraging cutting-edge technology and a vast network of meteorological data, Weathernews delivers accurate forecasts, risk management services, and decision-making tools to businesses and consumers worldwide.

How the Company Makes Money

Weathernews Inc. generates revenue through a multifaceted business model focused on subscription-based services, data analytics, and customized weather solutions. The company offers subscription packages for businesses and industries that rely heavily on weather data for operational efficiency and safety, such as maritime and aviation sectors. Additionally, Weathernews partners with media outlets and digital platforms to provide weather content, which contributes to their revenue through licensing agreements. The company also engages in bespoke consulting projects, offering tailored weather insights and risk mitigation strategies to help clients minimize weather-related disruptions. Key partnerships with governmental agencies, corporations, and media companies play a significant role in expanding its reach and enhancing its service offerings, thereby driving its revenue growth.

Weathernews Inc. Financial Statement Overview

Summary

Weathernews Inc. has consistent revenue growth, strong profitability, minimal debt, and robust cash generation. This positions the company as financially stable and well-managed within its industry, with minimal risks due to low leverage and high cash reserves.

Income Statement

Weathernews Inc. has demonstrated consistent revenue growth with a 5.34% increase from the previous year, reaching ¥22.24 billion in 2024. Their gross profit margin is strong at 42.3%, and the net profit margin is impressive at 10.96%, indicating effective management of expenses. Both EBIT and EBITDA margins are solid at 14.7% and 17.4%, respectively, showcasing operational efficiency. Overall, the income statement reflects a healthy and growing business with robust profitability.

Balance Sheet

The company's balance sheet is strong, with a very low debt-to-equity ratio of 0.0008, indicating minimal reliance on debt financing. The equity ratio is high at 85.8%, reflecting a stable financial structure with significant equity backing. Return on equity stands at 12.32%, demonstrating effective utilization of shareholders' funds. The company maintains a substantial cash reserve, enhancing its financial flexibility. Overall, the balance sheet indicates financial stability and low risk.

Cash Flow

Weathernews Inc. shows positive cash flow trends, with operating cash flow coverage of net income at 1.39, indicating strong cash generation relative to profits. Free cash flow grew by 53.29% year-over-year, highlighting efficient cash management and investment capability. The free cash flow to net income ratio is robust at 1.23, affirming the company's ability to convert earnings into cash. Overall, the cash flow statement reflects healthy cash generation and effective capital allocation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.01B	23.51B	22.24B	21.11B	19.65B	18.84B
Gross Profit	10.44B	10.87B	9.41B	8.96B	8.18B	7.43B
EBITDA	4.68B	5.12B	3.87B	4.12B	3.78B	3.29B
Net Income	2.84B	3.12B	2.44B	2.40B	2.16B	1.86B
Balance Sheet
Total Assets	23.49B	25.76B	23.06B	20.98B	19.13B	17.69B
Cash, Cash Equivalents and Short-Term Investments	14.55B	16.98B	14.31B	12.52B	11.42B	9.25B
Total Debt	0.00	0.00	15.16M	52.78M	83.19M	0.00
Total Liabilities	2.84B	4.21B	3.27B	2.58B	2.28B	2.25B
Stockholders Equity	20.65B	21.53B	19.78B	18.40B	16.84B	15.44B
Cash Flow
Free Cash Flow	2.05B	4.17B	3.01B	1.96B	3.11B	1.87B
Operating Cash Flow	2.09B	4.43B	3.39B	2.38B	3.57B	2.48B
Investing Cash Flow	-48.41M	-269.61M	-408.00M	-254.89M	-395.14M	-615.99M
Financing Cash Flow	-2.54M	-1.44B	-1.31B	-1.10B	-1.10B	-1.09B

Weathernews Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4700.00
• 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:4825, the sentiment is Positive. The current price of 4700 is above the 20-day moving average (MA) of 4553.75, above the 50-day MA of 4269.80, and above the 200-day MA of 3630.90, indicating a bullish trend. The MACD of 95.26 indicates Positive momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4825.

Weathernews Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	76 Outperform	¥4.23B	14.75		―	19.99%	4285.55%
4825	73 Outperform	¥107.71B	33.49		1.48%	5.68%	27.44%
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%
2489	―	¥11.88B	23.14		1.03%	―	―
3662	71 Outperform	¥22.69B	22.82		1.73%	-3.20%	95.08%
3675	―	¥13.77B	9.84		1.99%	―	―
3845	58 Neutral	¥4.78B	―		―	-26.88%	26.91%

Weathernews Inc. Corporate Events

Weathernews Inc. Announces Executive Restructuring

Weathernews Inc. announced changes in its executive structure, with reappointments of current directors and new appointments of executive officers, effective June 1, 2025. These changes, including the introduction of a new Creative Director role, aim to strengthen the company’s strategic positioning and operational efficiency across various business divisions.

Weathernews Inc. Reports Strong Financial Performance and Upward Forecast Revisions

Weathernews Inc. reported a significant improvement in its financial performance for the nine months ended February 28, 2025, with net sales increasing by 4.6% and operating profit rising by 37.1% year-on-year. The company has revised its earnings forecasts upward due to better-than-expected progress in AI-driven initiatives, indicating a positive outlook for stakeholders.

Weathernews Inc. Revises Financial Forecasts Upward Amid AI Integration

Weathernews Inc. has revised its financial forecast for the fiscal year ending May 31, 2025, indicating an expected improvement in profitability. The company attributes this to the efficient systemization of its operations using AI, which has allowed it to maintain quality while limiting personnel increases. As a result, operating profit, ordinary profit, and profit attributable to owners are anticipated to surpass previous forecasts, reflecting a positive outlook for stakeholders.

Weathernews Inc. Reports Strong Financial Performance and Upward Forecast Revision

Weathernews Inc. reported a significant improvement in its financial performance for the nine months ending February 28, 2025, with net sales increasing by 4.6% and operating profit rising by 37.1% compared to the previous year. The company has revised its earnings forecasts upward due to successful implementation of AI operation models, indicating a positive outlook for stakeholders.