W-SCOPE Corporation. (6619) AI Stock Analysis

• Market Cap: ¥9.12B
• Dividend Yield: N/A
• Average Volume (3M): 484.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 314
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -57.80
• Shares Outstanding: 56,625,700
• 10 Day Avg. Volume: 405,510
• 30 Day Avg. Volume: 484,786
• PEG Ratio: <0.01
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -0.58
• 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: 41 Neutral
• Price Target: ¥156.00 ▼(-5.45% Downside)

The overall stock score reflects significant financial and technical challenges. Declining revenue, negative profitability, and weak technical indicators are major concerns. The stock's valuation is poor due to negative earnings, making it a risky investment.

Positive Factors

Strategic Market Position

The company's focus on lithium-ion battery components positions it well in the growing EV and renewable energy markets, supporting long-term demand.

Strong Partnerships

Partnerships with major players ensure a steady revenue stream and enhance market credibility, supporting sustainable business growth.

Stable Equity Position

A strong equity position provides financial stability and flexibility, enabling the company to withstand market fluctuations and invest in growth opportunities.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or pricing power, potentially impacting long-term profitability and growth.

Negative Cash Flow

Negative cash flow suggests reliance on external financing, which can limit operational flexibility and increase financial risk over time.

Operational Inefficiencies

Operational inefficiencies reduce profitability and competitiveness, hindering the company's ability to capitalize on market opportunities.

W-SCOPE Corporation. Business Overview & Revenue Model

Company Description

W-SCOPE Corporation manufactures and sells plastic films and sheets in Japan. It offers separators for lithium-ion secondary batteries. It also markets its products in Korea, the United States, and Europe. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

W-SCOPE Corporation generates revenue through the sale of its battery separator films and related products to major battery manufacturers and electric vehicle producers. The company has established key partnerships with leading automotive and technology firms, which significantly contributes to its revenue growth. Additionally, W-SCOPE benefits from increasing global demand for electric vehicles and renewable energy solutions, positioning itself strategically to capitalize on these market trends. The company's revenue model is primarily based on direct sales, contracts, and long-term supply agreements, ensuring a steady cash flow from its customer base.

W-SCOPE Corporation. Financial Statement Overview

Summary

The company shows a mixed financial performance with declining revenue and profitability, weak gross profit margins, and negative net income. The balance sheet is stable with a strong equity position, but historical high leverage is a risk. Cash flow challenges are evident with negative free cash flow and 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.44B	31.05B	44.35B	45.10B	29.97B	18.48B
Gross Profit	-3.96B	1.09B	5.84B	9.91B	4.70B	-1.03B
EBITDA	-2.37B	2.25B	10.60B	15.75B	4.19B	-5.26B
Net Income	-10.42B	-3.71B	866.77M	4.41B	-2.94B	-11.18B
Balance Sheet
Total Assets	55.58B	60.08B	171.00B	139.53B	83.37B	70.23B
Cash, Cash Equivalents and Short-Term Investments	158.00M	262.00M	12.01B	32.84B	11.48B	6.54B
Total Debt	8.02B	8.31B	34.86B	17.62B	20.41B	46.79B
Total Liabilities	10.34B	10.41B	47.20B	26.26B	32.94B	60.29B
Stockholders Equity	45.24B	49.67B	53.63B	50.41B	30.61B	9.94B
Cash Flow
Free Cash Flow	0.00	-24.15B	-34.46B	-21.60B	-4.41B	-10.46B
Operating Cash Flow	0.00	4.01B	12.20B	6.60B	2.26B	85.00M
Investing Cash Flow	0.00	-28.75B	-51.01B	-28.33B	-2.37B	-14.62B
Financing Cash Flow	0.00	17.28B	15.02B	41.69B	8.88B	4.53B

W-SCOPE Corporation. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 165.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6619, the sentiment is Negative. The current price of 165 is below the 20-day moving average (MA) of 199.90, below the 50-day MA of 221.72, and below the 200-day MA of 241.57, indicating a bearish trend. The MACD of -15.26 indicates Positive momentum. The RSI at 26.96 is Positive, neither overbought nor oversold. The STOCH value of 6.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6619.

W-SCOPE Corporation. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6763	80 Outperform	¥25.70B	14.53	―	3.15%	12.72%	53.85%
6637	72 Outperform	¥59.67B	12.42	―	0.88%	5.28%	18.38%
6654	68 Neutral	¥6.10B	33.49	―	2.90%	-0.14%	-32.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6521	44 Neutral	¥16.51B	-5.97	―	―	36.90%	-311.02%
6619	41 Neutral	¥9.12B	-0.72	―	―	―	―

W-SCOPE Corporation. Corporate Events

W-SCOPE Completes Payment for Stock Acquisition Rights Issuance

W-SCOPE Corporation has completed the payment for the issuance of its 10th and 11th Stock Acquisition Rights, amounting to ¥3,660,000. This issuance, resolved by the Board of Directors, involves a third-party allotment method and is expected to enhance the company’s financial flexibility and market positioning by potentially increasing its share capital through the exercise of these rights.

W-SCOPE Corporation Announces New Stock Acquisition Rights to Boost Growth

W-SCOPE Corporation has announced the issuance of its 10th and 11th Stock Acquisition Rights through a third-party allotment to McCorley Bank Ltd. This strategic move aims to capitalize on the growing demand for lithium-ion batteries, particularly in the EV sector, and is expected to enhance the company’s market position by securing additional capital for future growth. The issuance is part of a Target Issue Program (TIP), which anticipates future stock price increases and allows for staged issuance of new shares.

W-SCOPE Corporation Reports Second Quarter Non-Operating Income and Expenses

W-SCOPE Corporation reported non-operating income and expenses for the second quarter of the fiscal year ending January 2026. The company recorded ¥148 million in compensation income due to surplus inventories from customers, while also incurring significant non-operating expenses, including ¥122 million in interest expenses and ¥2.402 billion in equity losses from its affiliate, W-SCOPE CHUNGJU PLANT CO., LTD. The announcement highlights the financial challenges faced by the company, impacting its operations and potentially affecting stakeholder confidence.

W-SCOPE Corporation Reports Earnings Shortfall, Shifts Focus to ESS

W-SCOPE Corporation announced a significant discrepancy between its forecasted and actual earnings for the second quarter of the fiscal year ending January 2026. The company experienced a substantial decline in net sales and income due to reduced demand in the EV sector and delays in product shipments. Despite these setbacks, W-SCOPE is shifting its focus from EV to ESS applications and has secured new contracts for its ion-exchange membrane business, anticipating improved performance in the latter half of the fiscal year.