W-SCOPE Corporation. (6619) AI Stock Analysis

• Market Cap: ¥13.25B
• Dividend Yield: N/A
• Average Volume (3M): 966.90K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.46
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 314
• Sector: Industrials
• Sector Strength: 89
• Industry: Electrical Equipment & Parts
• EPS (TTM): -51.87
• Shares Outstanding: 55,225,600
• 10 Day Avg. Volume: 738,850
• 30 Day Avg. Volume: 966,896
• PEG Ratio: -0.03
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.37
• 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: ¥214.00
• Price Target Upside: -10.83% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: ¥241.00 ▲(0.42%Upside)

The overall stock score is driven by weak financial performance and bearish technical indicators. The company's valuation further detracts from the investment appeal due to negative earnings. While there is some stability in the balance sheet, the lack of positive earnings and cash flow is a significant risk.

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

Mixed financial performance with declining revenue, negative net income, and weak cash flows. However, the balance sheet shows relative stability with a strong equity position.

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
EBITDA	2.25B	10.60B	14.92B	4.19B	-5.26B
Net Income	-3.71B	866.77M	7.56B	-3.16B	-11.18B
Balance Sheet
Total Assets	60.08B	171.00B	139.53B	83.37B	70.23B
Cash, Cash Equivalents and Short-Term Investments	262.00M	12.01B	32.84B	11.48B	6.54B
Total Debt	8.31B	34.86B	17.62B	20.41B	46.79B
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: Negative
• Last Price: 240.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 240 is below the 20-day moving average (MA) of 240.10, below the 50-day MA of 259.28, and below the 200-day MA of 279.90, indicating a bearish trend. The MACD of -6.78 indicates Positive momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 14.61 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
6637	75 Outperform	¥47.36B	10.64		1.16%	8.33%	10.87%
6763	74 Outperform	¥21.13B	10.45		3.15%	10.29%	50.74%
6654	70 Neutral	¥6.06B	28.63		2.92%	2.75%	-22.26%
Sector *	59 Neutral	AU$1.63B	9.68	11.24%	3.66%	6.75%	3.18%
6521	54 Neutral	¥24.72B	―		―	27.06%	-473.48%
6619	43 Neutral	¥13.25B	9.97		―	―	―

W-SCOPE Corporation. Corporate Events

W-SCOPE Corporation Reports Non-Operating Expenses for Q1 FY2026

W-SCOPE Corporation has reported non-operating expenses for the first quarter of the fiscal year ending January 2026, amounting to 1,347 million yen due to equity losses from its affiliate, W-SCOPE CHUNGJU PLANT CO., LTD. This financial development may impact the company’s financial results and has been detailed in their consolidated financial results announcement.

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.