Weathernews Inc. (4825) AI Stock Analysis

• Market Cap: ¥93.09B
• Dividend Yield: 2.17%
• Average Volume (3M): 123.48K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.62
• Revenue Growth: 5.17%
• EPS Growth: 52.84%
• Country: JP
• Employees: 1,152
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 30.34
• Shares Outstanding: 23,688,000
• 10 Day Avg. Volume: 258,570
• 30 Day Avg. Volume: 123,483
• PEG Ratio: 1.03
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 3.75
• P/FCF Ratio: 21.15
• 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: 74 Outperform
• Price Target: ¥4,407.00 ▲(11.99% Upside)

The score is primarily driven by strong financial performance—improving margins, excellent balance-sheet strength with negligible debt, and solid cash generation—tempered by mixed technical signals (negative MACD and weaker 100/200-day trend) and a moderate valuation (P/E 24.1) with some support from a ~2.03% dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth and strong profitability indicate a solid market position and effective business model, supporting long-term stability.

AI Integration

AI integration enhances operational efficiency and scalability, providing a durable competitive advantage and supporting future profitability.

Balance Sheet Health

A strong balance sheet with minimal debt enhances financial stability and flexibility, allowing for strategic investments and growth.

Negative Factors

Executive Restructuring

Executive restructuring can lead to transitional challenges and uncertainty, potentially impacting strategic continuity and operational focus.

Valuation Concerns

High valuation may limit stock attractiveness, potentially impacting investor sentiment and capital raising ability in the long term.

Market Saturation

Slower revenue growth rates could indicate market saturation, challenging the company to find new growth avenues and maintain momentum.

Weathernews Inc. Business Overview & Revenue Model

Company Description

Weathernews Inc. provides weather services for land, sea, and aviation, broadcasting, environment, mobile internet, and sport companies in Japan and internationally. The company was incorporated in 1986 and is headquartered in Chiba, Japan.

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

High-quality fundamentals supported by improving profitability (gross margin ~46% in 2025; operating margin ~19%; net margin ~13%), an exceptionally conservative balance sheet with effectively no debt, and strong cash conversion (operating cash flow ~1.24x net income; free cash flow ~0.94x net income). The main constraint is slowing revenue growth (~2% in 2025), making continued margin discipline more important.

Income Statement

The company shows steady top-line expansion, with revenue rising from 2020 to 2025 and a modest 2025 annual growth rate (~2%). Profitability is strong and improving: gross margin expanded to ~46% in 2025 (from ~37% in 2020), while operating profitability also strengthened (operating margin ~19% and EBITDA margin ~22% in 2025). Net margin improved to ~13% in 2025 versus ~9% in 2020, signaling better operating leverage. The main weakness is the recent slowdown in revenue growth, which suggests earnings momentum is increasingly driven by margin gains rather than rapid demand acceleration.

Balance Sheet

The balance sheet is exceptionally conservative with effectively no debt (2025 debt is 0; prior years show only minimal levels), resulting in near-zero leverage and strong financial flexibility. Equity has grown steadily alongside asset growth, supporting balance sheet resilience. Returns on equity are healthy and improving (mid-teens in 2025), indicating good profitability without relying on leverage. A potential drawback is that very low leverage can cap return enhancement, but overall financial risk appears very low.

Cash Flow

Cash generation is solid: operating cash flow consistently exceeds net income (around ~1.24x in 2025), supporting earnings quality. Free cash flow is also strong and closely tracks net income (roughly ~0.94x in 2025), indicating profits are translating into cash after investment needs. Free cash flow growth is volatile year-to-year (notably a decline in 2023 followed by a sharp rebound in 2025), which introduces some variability, but the overall direction into 2025 is favorable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.67B	23.51B	22.24B	21.11B	19.65B	18.84B
Gross Profit	10.90B	10.87B	9.41B	8.96B	8.18B	7.43B
EBITDA	5.58B	5.12B	3.87B	4.12B	3.78B	3.29B
Net Income	3.51B	3.12B	2.44B	2.40B	2.16B	1.86B
Balance Sheet
Total Assets	25.26B	25.76B	23.06B	20.98B	19.13B	17.69B
Cash, Cash Equivalents and Short-Term Investments	16.87B	16.98B	14.31B	12.52B	11.42B	9.25B
Total Debt	117.04M	0.00	15.16M	52.78M	83.19M	0.00
Total Liabilities	3.71B	4.21B	3.27B	2.58B	2.28B	2.25B
Stockholders Equity	21.53B	21.53B	19.78B	18.40B	16.84B	15.44B
Cash Flow
Free Cash Flow	0.00	4.17B	3.01B	1.96B	3.11B	1.87B
Operating Cash Flow	0.00	4.43B	3.39B	2.38B	3.57B	2.48B
Investing Cash Flow	0.00	-269.61M	-408.00M	-254.89M	-395.14M	-615.99M
Financing Cash Flow	0.00	-1.44B	-1.31B	-1.10B	-1.10B	-1.09B

Weathernews Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3935.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 3935 is below the 20-day moving average (MA) of 4012.25, above the 50-day MA of 3912.95, and below the 200-day MA of 4040.48, indicating a bullish trend. The MACD of 54.52 indicates Negative momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 50.89 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
4825	74 Outperform	¥93.09B	24.96	―	2.17%	5.17%	52.84%
3662	70 Outperform	¥19.94B	17.27	―	1.85%	0.63%	-1.84%
3930	61 Neutral	¥2.81B	15.70	―	―	7.20%	47.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3845	52 Neutral	¥5.40B	-44.01	―	―	-32.32%	-69.96%
2489	46 Neutral	¥10.18B	-17.53	―	1.09%	-5.70%	-215.73%

Weathernews Inc. Corporate Events

Weathernews Announces 2-for-1 Stock Split and 40th Anniversary Commemorative Dividend Plan

Weathernews Inc. has approved a 2-for-1 stock split effective March 1, 2026, aiming to improve share liquidity and broaden its investor base by lowering the investment unit price. In tandem, the company will amend its Articles of Incorporation to double the total number of authorized shares to 188 million, while keeping stated capital unchanged, reinforcing its capacity for future equity-related initiatives. The board also revised its year-end dividend forecast for the fiscal year ending May 2026 to reflect the stock split mechanics and announced plans for a 40th anniversary commemorative dividend, targeting a consolidated payout ratio of 100% and projecting total dividends of around 60–70 yen per share on a pre-split basis. These measures underscore management’s confidence in progress toward its mid-term goal of a 20% or higher operating profit margin and signal a continued emphasis on generous shareholder returns as the company marks its 40th year in business.

The most recent analyst rating on (JP:4825) stock is a Buy with a Yen4325.00 price target. To see the full list of analyst forecasts on Weathernews Inc. stock, see the JP:4825 Stock Forecast page.

Weathernews Books Strong First-Half Earnings and Plans Commemorative Dividend on Robust Outlook

Weathernews Inc. reported solid results for the six months ended November 30, 2025, with net sales rising 4.5% year on year to ¥12.1 billion and profit attributable to owners of parent jumping 44.4% to ¥1.64 billion, underpinned by higher operating and ordinary profit and a stronger equity ratio of 86.9%. Reflecting its robust balance sheet and earnings momentum, the company revised its dividend plans in connection with recent and upcoming stock splits, and announced a policy to pay a 40th-anniversary commemorative dividend on top of its ordinary payout for the fiscal year ending May 31, 2026, targeting a consolidated payout ratio of 100% and signaling continued shareholder-friendly capital allocation alongside its forecast of mid–single-digit sales growth and double-digit profit growth for the full year.

The most recent analyst rating on (JP:4825) stock is a Buy with a Yen4325.00 price target. To see the full list of analyst forecasts on Weathernews Inc. stock, see the JP:4825 Stock Forecast page.

Weathernews Inc. Reports Strong Q3 Financial Performance and Dividend Forecast

Weathernews Inc. reported a significant improvement in its financial performance for the three months ended August 31, 2025, with net sales increasing by 2.8% and operating profit surging by 100.5% compared to the previous year. The company’s strong results reflect its effective strategies and market positioning, with a notable rise in profit attributable to owners of the parent by 140.6%. Additionally, Weathernews Inc. announced a forecasted increase in annual dividends for the fiscal year ending May 31, 2026, indicating confidence in its continued growth and financial stability.

The most recent analyst rating on (JP:4825) stock is a Buy with a Yen4325.00 price target. To see the full list of analyst forecasts on Weathernews Inc. stock, see the JP:4825 Stock Forecast page.