Waida Mfg. Co., Ltd. (6158) AI Stock Analysis

• Market Cap: ¥7.10B
• Dividend Yield: 4.08%
• Average Volume (3M): 3.19K
• Price to Earnings (P/E): 61.1
• Beta (1Y): 0.46
• Revenue Growth: -11.74%
• EPS Growth: -46.96%
• Country: JP
• Employees: 186
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 13.21
• Shares Outstanding: 7,028,000
• 10 Day Avg. Volume: 3,100
• 30 Day Avg. Volume: 3,186
• PEG Ratio: -0.34
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 7.96
• 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: 71 Outperform
• Price Target: ¥1,270.00 ▲(43.02% Upside)
• Action: Upgraded Date: 02/20/26
• Date: Action: Upgraded 02/20/26

The score is driven mainly by strong financial stability and solid profitability, supported by clear technical uptrend signals. The biggest constraint is valuation, with a very high P/E despite a supportive dividend yield.

Positive Factors

Balance Sheet Strength

Very low leverage (debt-to-equity ~0.07) provides durable financial flexibility. It supports capital spending, dividends, or M&A without stressing cash flows, lowers refinancing risk in downturns, and preserves the company's ability to invest in long-term initiatives.

High Gross Margins

A sustained gross margin near 39% implies structural cost advantages or pricing power in its machinery niche. High gross margins create a buffer for SG&A and R&D, help sustain operating profits when revenue growth is modest, and support long-term cash generation.

Cash Generation

Consistent positive free cash flow and good operating cash conversion indicate reliable internal funding for capex, dividends, and debt servicing. Even with slowed FCF growth in 2025, the company's cash conversion quality supports sustained financial stability and reinvestment capacity.

Negative Factors

Revenue Decline

A ~21.6% decline in revenue materially reduces scale and raises concerns about demand for core products or contract losses. Prolonged top-line contraction pressures operating leverage, limits reinvestment, and could force margin trade-offs or restructuring to restore growth.

Earnings Volatility

An ~82% drop in EPS reflects acute profitability pressure or significant one-off items, reducing earnings predictability. High EPS volatility complicates capital allocation, undermines confidence in sustained profitability, and may constrain dividends or strategic investments.

Net Margin Compression

Net margin softening to 5.8% weakens the company's ability to absorb cost inflation and diminishes retained earnings for growth. If margins do not stabilize, management may face tougher choices between raising prices, cutting costs, or curtailing investment, which can hinder long-term competitiveness.

Waida Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Waida Mfg. Co.,Ltd. operates in the mold-related and the cutting tool-related industry in Japan, China, rest of Asia, Africa, Europe, and the United States. It offers various grinders, including profile, jig, grooving insert, digital profile, wafer surface, and milling tool grinders, as well as HAAS Multigrind grinding centers; and automatic chart marking systems. The company was founded in 1933 and is headquartered in Takayama, Japan.

How the Company Makes Money

Waida Mfg. Co., Ltd. generates revenue primarily through the sale of its precision machinery and equipment, which includes cutting tools and grinding machines. The company targets a diverse customer base across multiple industries, ensuring a steady demand for its products. Key revenue streams include direct sales to manufacturers, as well as partnerships with distributors and resellers who help expand market reach. Additionally, the company may earn income from after-sales services such as maintenance, repairs, and technical support, which create ongoing customer relationships and recurring revenue. Strategic partnerships with industry players also enhance its market position and contribute to its earnings.

Waida Mfg. Co., Ltd. Financial Statement Overview

Summary

Strong overall financial health supported by a robust balance sheet (very low leverage and high stability). Profitability is solid, though net margin has softened recently and revenue growth remains modest. Cash flow is consistently positive, but free cash flow growth slowed in 2025.

Income Statement

Waida Mfg. Co., Ltd. shows strong profitability with a consistent gross profit margin averaging around 39% over the years. The net profit margin has slightly decreased to 5.8% in 2025 from previous years. However, revenue growth has been modest, with a recent slight increase in 2025 compared to 2024.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of approximately 0.07 in 2025, indicating low leverage. Return on equity remains steady, reflecting efficient use of equity. The equity ratio is strong, indicating high financial stability.

Cash Flow

Waida Mfg. Co., Ltd.'s cash flow generation is solid, with consistent positive free cash flow, although there was a decline in free cash flow growth in 2025. The operating cash flow to net income ratio suggests good cash conversion, while free cash flow to net income remains healthy.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.24B	7.55B	7.54B	7.58B	6.49B	4.21B
Gross Profit	2.88B	2.97B	2.96B	2.99B	2.57B	1.59B
EBITDA	984.00M	1.13B	1.38B	1.56B	1.31B	580.79M
Net Income	377.17M	435.09M	727.45M	868.11M	694.10M	222.31M
Balance Sheet
Total Assets	12.16B	12.60B	12.15B	11.70B	11.92B	10.63B
Cash, Cash Equivalents and Short-Term Investments	4.87B	4.81B	4.34B	3.97B	5.94B	5.03B
Total Debt	629.53M	744.23M	509.84M	649.82M	1.40B	1.56B
Total Liabilities	1.94B	2.25B	1.99B	2.19B	3.13B	2.39B
Stockholders Equity	10.13B	10.27B	10.06B	9.43B	8.72B	8.17B
Cash Flow
Free Cash Flow	0.00	756.20M	802.00M	-1.04B	1.19B	-419.47M
Operating Cash Flow	0.00	917.74M	1.14B	-282.73M	1.34B	-311.06M
Investing Cash Flow	0.00	-401.12M	-330.75M	-753.22M	-140.84M	-108.41M
Financing Cash Flow	0.00	-12.16M	-513.63M	-958.97M	-333.69M	563.06M

Waida Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 888.00
• 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:6158, the sentiment is Positive. The current price of 888 is below the 20-day moving average (MA) of 1030.35, below the 50-day MA of 947.60, and below the 200-day MA of 888.81, indicating a bullish trend. The MACD of 40.52 indicates Positive momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 24.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6158.

Waida Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6286	79 Outperform	¥11.70B	9.62	―	1.60%	11.62%	16.48%
6159	76 Outperform	¥14.11B	11.91	―	0.93%	23.05%	89.17%
6158	71 Outperform	¥7.10B	61.07	―	4.08%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6155	58 Neutral	¥5.26B	-35.12	―	2.10%	-0.59%	89.24%
6495	55 Neutral	¥13.20B	242.29	―	1.65%	3.96%	―