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

• Market Cap: ¥6.22B
• Dividend Yield: 4.08%
• Average Volume (3M): 3.19K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.55
• 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: ¥1,031.00 ▲(16.10% 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 provides durable financial flexibility and resilience. A debt-to-equity of ~0.07 limits interest burden, supports capital spending or cyclical cushioning without relying on markets, and preserves the ability to sustain dividends or pursue strategic investments over months.

High Gross Margins

A long-run gross margin near 39% indicates manufacturing efficiency and structural pricing power. High product-level margins create a durable buffer against cost swings, allowing the company to fund SG&A and R&D while maintaining operating profitability across business cycles.

Consistent Cash Generation

Sustained positive free cash flow demonstrates reliable cash conversion from operations, supporting dividends, debt service, and reinvestment without heavy financing. Even with slower FCF growth in 2025, ongoing cash generation is a durable foundation for financial policy and strategic optionality.

Negative Factors

Revenue Contraction

A steep ~21.6% revenue decline signals structural demand or order-book weakness that can persist beyond a single quarter. Reduced top-line scale pressures operating leverage, limits reinvestment, and can force margin trade-offs, making near-term recovery and growth uncertain over months.

Earnings Volatility

An ~82% drop in EPS indicates material earnings volatility or one-off shocks that undermine confidence in recurring profitability. Persistent earnings weakness would strain retained earnings, dividend coverage and reduce room for strategic investments, affecting medium-term financial durability.

Net Margin Softening

A decline to a 5.8% net margin narrows the profitability cushion from gross margins and magnifies sensitivity to revenue swings. With modest or negative top-line trends, sustained margin pressure could limit free cash flow growth and constrain capital allocation over the coming months.

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

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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	1.07B	1.12B	1.31B	1.51B	1.24B	529.29M
Net Income	376.81M	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	965.01M	-1.03B	1.21B	-387.22M
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: Neutral
• Last Price: 888.00
• 50DMA: Negative
• 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 Neutral. The current price of 888 is below the 20-day moving average (MA) of 999.15, below the 50-day MA of 974.56, and below the 200-day MA of 896.71, indicating a neutral trend. The MACD of -11.57 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 52.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6391	74 Outperform	¥8.29B	3.84	―	1.19%	-14.09%	-36.08%
6158	71 Outperform	¥6.22B	16.81	―	4.08%	-11.74%	-46.96%
5903	69 Neutral	¥6.88B	14.36	―	3.51%	4.29%	3.00%
6408	67 Neutral	¥6.89B	3.03	―	1.37%	-3.05%	―
9930	64 Neutral	¥6.53B	-638.57	―	2.29%	-5.85%	-17.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6494	62 Neutral	¥5.70B	17.92	―	―	9.59%	54.63%