W-SCOPE Corporation. (6619) AI Stock Analysis

• Market Cap: ¥14.69B
• Dividend Yield: N/A
• Average Volume (3M): 801.43K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 314
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): -72.48
• Shares Outstanding: 55,225,600
• 10 Day Avg. Volume: 869,860
• 30 Day Avg. Volume: 801,430
• PEG Ratio: <0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 52 Neutral
• Price Target: ¥264.00 ▼( -0.75% Downside)

W-SCOPE Corporation's overall stock score reflects significant financial performance challenges, particularly in terms of profitability and cash flow. While technical indicators suggest positive momentum, the valuation remains unattractive due to negative earnings. The lack of earnings call data or significant corporate events limits additional insights into future performance.

W-SCOPE Corporation. Business Overview & Revenue Model

Company Description

W-SCOPE Corporation is a Japanese company engaged in the development, production, and sale of separators for lithium-ion secondary batteries. These separators are critical components in the battery manufacturing sector, playing a crucial role in the performance, safety, and longevity of lithium-ion batteries. The company primarily serves the electric vehicle, electronics, and energy storage industries, which are rapidly growing due to the global shift towards renewable energy and electric mobility.

How the Company Makes Money

W-SCOPE Corporation generates revenue through the production and sale of high-quality separators for lithium-ion batteries. The company's key revenue streams include direct sales to battery manufacturers who integrate these separators into their battery production processes. As the demand for electric vehicles and portable electronic devices continues to rise, the need for efficient and reliable battery components like separators increases, driving W-SCOPE's sales. Additionally, W-SCOPE may engage in strategic partnerships and collaborations with major players in the battery and automotive industries to ensure a steady demand for their products. The company's focus on research and development also helps maintain its competitive edge by continuously improving product quality and expanding its product offerings.

W-SCOPE Corporation. Financial Statement Overview

Summary

The financial performance of W-SCOPE Corporation is concerning due to declining revenue, negative net income, and cash flow challenges. The income statement shows deteriorating operational efficiency, while the balance sheet indicates stability with a strong equity position but historical high leverage. Cash flow issues highlight a reliance on external financing.

Income Statement

The income statement reveals a concerning trend of declining revenue, with a significant drop from 2024 to 2025. Gross profit margin is weak, and the company is operating at a loss with negative net income and EBIT margins. The turn from positive to negative EBITDA and EBIT indicates deteriorating operational efficiency and profitability.

Balance Sheet

The balance sheet shows a strong equity position relative to total assets, indicating stability. However, the debt-to-equity ratio has improved significantly from previous periods due to reduced total debt, which is positive, but historical high leverage poses a risk. ROE has been negative due to recurring net losses, which is concerning.

Cash Flow

Cash flow analysis shows negative free cash flow, signaling cash outflow challenges. Operating cash flow is insufficient to cover capital expenditures, indicating reliance on external financing. The free cash flow to net income ratio is unfavorable, reflecting difficulties in converting profits into cash.

Breakdown
Mar 2025	Mar 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
31.05B	44.35B	45.10B	29.97B	18.48B
	Gross Profit
1.09B	5.84B	9.91B	4.70B	-1.03B
	EBIT
-1.01B	3.57B	7.83B	2.54B	-3.08B
	EBITDA
2.25B	10.60B	14.92B	4.19B	-5.26B
	Net Income Common Stockholders
-3.71B	866.77M	7.56B	-3.16B	-11.18B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
262.00M	12.01B	32.84B	11.48B	6.54B
	Total Assets
60.08B	171.00B	139.53B	83.37B	70.23B
	Total Debt
8.31B	34.86B	17.62B	20.41B	46.79B
	Net Debt
8.05B	22.85B	-15.22B	8.94B	40.25B
	Total Liabilities
10.41B	47.20B	26.26B	32.94B	60.29B
	Stockholders Equity
49.67B	53.63B	50.41B	30.61B	9.94B
Cash Flow		Free Cash Flow
-24.15B	-34.46B	-21.60B	-4.41B	-10.46B
	Operating Cash Flow
4.01B	12.20B	6.60B	2.26B	85.00M
	Investing Cash Flow
-28.75B	-47.08B	-28.33B	-2.37B	-14.62B
	Financing Cash Flow
17.28B	13.86B	41.69B	8.88B	4.53B

W-SCOPE Corporation. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 266.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6619, the sentiment is Positive. The current price of 266 is above the 20-day moving average (MA) of 253.40, above the 50-day MA of 241.08, and below the 200-day MA of 310.26, indicating a neutral trend. The MACD of 9.61 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 46.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6619.

W-SCOPE Corporation. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6981	77 Outperform	$3.79T	16.62	8.98%	2.46%	6.29%	30.68%
5351	68 Neutral	¥75.12B	7.44		5.57%	0.28%	-24.90%
5214	66 Neutral	¥273.46B	24.02	-0.56%	3.57%	3.02%	48.28%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
4183	64 Neutral	¥580.29B	17.89	3.69%	4.65%	5.15%	-8.48%
6619	52 Neutral	¥14.69B	9.97		―	―	―
4005	51 Neutral	$546.67B	14.16	3.96%	2.16%	4.08%	-6.32%

W-SCOPE Corporation. Corporate Events

W-SCOPE Corporation Extends Stock Acquisition Rights Exercise Period

W-SCOPE Corporation announced an extension of the exercise period for its 3rd stock acquisition rights from April 30, 2025, to April 30, 2030. This decision, approved at the 20th Ordinary General Meeting of Shareholders, is intended to maintain motivation and prevent insider trading while avoiding stock dilution. The extension is not expected to impact the company’s business performance.

W-SCOPE Secures Major BPED Module Order for South Korean Lithium Plant

W-SCOPE Corporation’s subsidiary, W-SCOPE KOREA CO., LTD., has secured a significant order for bipolar electrodialysis (BPED) modules from POSCO Pilbara Lithium Solution, a joint venture between POSCO Holdings and Philbara Minerals Ltd. This order, valued at approximately 1 billion JPY, is part of a larger project to supply a lithium hydroxide chemical plant in South Korea, which will enhance the country’s capacity to produce lithium hydroxide for electric vehicle batteries. The deal signifies W-SCOPE’s growing influence in the lithium processing industry and is expected to contribute positively to the company’s earnings forecast, with stable demand anticipated due to increased production volumes.

W-SCOPE Corporation Extends Stock Acquisition Rights Exercise Period

W-SCOPE Corporation has announced an extension of the exercise period for its first and second series of stock acquisition rights, originally issued in 2010 and 2011. This decision aims to maintain motivation and responsibility among stakeholders while preventing insider trading and stock dilution. The extension moves the deadline to April 30, 2030, and is not expected to impact the company’s business performance.

W-SCOPE Corporation Reports Increased Net Sales Amidst Operational Challenges

W-SCOPE Corporation reported a 27% increase in net sales for the fiscal year ending January 31, 2025, compared to the previous year. This growth is attributed to increased shipments driven by inventory adjustments at U.S. customers, although the company still faced challenges with operating and ordinary income remaining negative.

W-SCOPE Corporation Reports Non-Operating Income and Expenses for Fiscal Year 2025

W-SCOPE Corporation reported non-operating income and expenses for the fiscal year ending January 31, 2025, highlighting a foreign exchange gain of 1,014 million yen due to valuation gains on foreign currency-denominated receivables and payables. However, the company also faced non-operating expenses, including 367 million yen in interest expenses and 3,007 million yen in equity losses from changing WCP’s status from a consolidated subsidiary to an equity-method affiliate, impacting its financial results.

W-SCOPE Corporation Reports Fiscal Year 2025 Earnings Results

W-SCOPE Corporation announced a slight difference between its revised earnings forecast and actual results for the fiscal year ending January 2025. The company’s net sales were close to expectations, but operating and ordinary income were lower than anticipated due to a decline in the European EV market and increased inventory valuation losses. The company is implementing cost reduction strategies and seeking new contracts to mitigate these impacts.