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Wacom Co (JP:6727)
:6727

Wacom Co (6727) AI Stock Analysis

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Wacom Co

(OTC:6727)

Rating:76Outperform
Price Target:
¥766.00
▲(11.66%Upside)
The overall stock score reflects Wacom Co's strong financial performance and positive technical momentum. The company's robust balance sheet and profitability are key strengths, while the recent declines in revenue growth and free cash flow are notable risks. The technical analysis supports a bullish outlook, although the valuation is only moderately attractive. Earnings call and corporate events data are not available for further analysis.

Wacom Co (6727) vs. iShares MSCI Japan ETF (EWJ)

Wacom Co Business Overview & Revenue Model

Company DescriptionWacom Co., Ltd. develops, manufactures, and sells electronic devices and related software worldwide. It provides input components and sensor systems to manufacturers of smartphones, tablets, and notebook PCs. The company also offers pen computers, such as MobileStudio Pro; pen displays, including Wacom One, Cintiq 13HD, Cintiq 22HD, Cintiq 22HD touch, Cintiq 27QHD, Cintiq 27QHD touch, Wacom Cintiq, and Wacom Cintiq Pro; pen tablets comprising Wacom Intuos, Wacom Intuos Pro, and Wacom Intuos Pro Paper; and smart pads consisting of Bamboo Slate and Bamboo Folio. In addition, it provides Bamboo Ink, Bamboo Ink Plus, Bamboo Sketch, Bamboo Solo, Bamboo Duo, Bamboo Fineline, and Bamboo Alpha styluses; and apps and services, such as Bamboo Paper, Inkspace, and Wacom Notes. Wacom Co., Ltd. was incorporated in 1983 and is headquartered in Kazo, Japan.
How the Company Makes MoneyWacom generates revenue through the sale of its interactive pen tablets, displays, and digital interface devices to both individual consumers and enterprise clients. A significant portion of the company's earnings comes from its high-margin professional creative products, such as the Cintiq series, which are popular among artists and designers. Wacom also licenses its digital ink technology to other companies, creating an additional revenue stream. Furthermore, Wacom has established strategic partnerships with technology firms to integrate its solutions into third-party products, which helps expand its market reach and increase sales. The company's global distribution network, including direct sales, online platforms, and retail partnerships, also plays a crucial role in driving revenue.

Wacom Co Financial Statement Overview

Summary
Wacom Co demonstrates a solid overall financial position with strong profitability and a stable balance sheet. However, recent declines in revenue and free cash flow growth suggest potential areas for improvement. Maintaining growth and cash flow stability will be crucial to sustaining long-term financial health.
Income Statement
75
Positive
Wacom Co shows strong profitability with a consistent gross profit margin, though revenue has slightly declined recently. The net profit margin remains healthy, indicating efficient cost management. However, there is a need for caution as the revenue growth rate turned negative in the latest year, which could be a sign of potential challenges.
Balance Sheet
80
Positive
The company maintains a solid equity ratio, indicating a stable financial structure with strong equity backing. The debt-to-equity ratio is low, reflecting prudent leverage levels. Return on equity is robust, showcasing effective use of shareholder funds to generate profits.
Cash Flow
70
Positive
Wacom Co's free cash flow remains strong, although it has decreased recently, which may affect future investments. The operating cash flow to net income ratio is positive, indicating good cash generation relative to accounting profits. However, the reduction in free cash flow growth highlights the need to monitor cash flow sustainability.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue115.68B118.79B112.73B108.79B108.53B
Gross Profit40.15B36.77B31.17B39.61B41.41B
EBITDA9.11B8.57B4.43B16.46B16.36B
Net Income5.22B4.56B1.79B10.95B10.23B
Balance Sheet
Total Assets70.77B79.62B75.28B73.33B71.18B
Cash, Cash Equivalents and Short-Term Investments24.36B31.66B20.02B21.79B32.04B
Total Debt12.00B14.00B9.00B2.00B6.00B
Total Liabilities39.91B43.65B34.79B29.83B33.49B
Stockholders Equity30.86B35.97B40.49B43.50B37.69B
Cash Flow
Free Cash Flow7.41B15.16B-2.60B-1.76B13.35B
Operating Cash Flow8.33B17.48B-1.06B-235.53M14.58B
Investing Cash Flow-2.27B-2.28B-3.14B-1.37B-1.38B
Financing Cash Flow-13.17B-6.43B1.07B-10.52B-4.05B

Wacom Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price686.00
Price Trends
50DMA
601.68
Positive
100DMA
595.56
Positive
200DMA
634.81
Positive
Market Momentum
MACD
20.87
Negative
RSI
68.55
Neutral
STOCH
83.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6727, the sentiment is Positive. The current price of 686 is above the 20-day moving average (MA) of 648.30, above the 50-day MA of 601.68, and above the 200-day MA of 634.81, indicating a bullish trend. The MACD of 20.87 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 83.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6727.

Wacom Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥91.40B18.5615.32%3.21%-2.62%24.89%
63
Neutral
$33.22B5.99-11.76%1.91%5.54%-19.87%
DE9EL
€982.54M14.4110.97%2.61%
€949.58M4.8630.22%1.72%
76
Outperform
¥128.59B9.16
3.28%10.52%15.36%
75
Outperform
¥104.69B14.39
2.73%8.95%4.60%
71
Outperform
¥91.61B21.36
4.88%0.03%-23.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6727
Wacom Co
686.00
-63.11
-8.42%
DE:9EL
Elecom Co
10.60
1.73
19.50%
DE:TECA
Toshiba Tec Corp.
16.80
-2.22
-11.67%
JP:6670
MCJ Co., Ltd.
1,311.00
-162.90
-11.05%
JP:6737
EIZO Corp.
2,153.00
-195.89
-8.34%
JP:7739
Canon Electronics Inc.
2,562.00
308.89
13.71%

Wacom Co Corporate Events

Wacom Announces Change in Major Shareholder
Jun 5, 2025

Wacom Co., Ltd. announced a change in its major shareholder, with Asset Value Investors Limited increasing its stake from 9.97% to 11.07% as of May 29, 2025. This change in shareholding reflects a significant shift in the company’s ownership structure, although Wacom has not provided specific comments on the outlook or implications of this development.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom Consents to Partial Retraction of Shareholder Proposal
May 21, 2025

Wacom Co., Ltd. announced that its Board of Directors has consented to a partial retraction of a shareholder proposal from AVI Japan Opportunity Trust PLC. This decision follows the company’s initial opposition to the proposal concerning amendments to the Articles of Incorporation related to dividend decisions, indicating a possible shift in shareholder relations and governance strategies.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom Announces Correction to Board Skill Matrix Disclosure
May 19, 2025

Wacom Co., Ltd. announced a correction to the Japanese version of their ‘Opinion of Board of Directors on Shareholder Proposal’ initially disclosed on May 16, 2025. The correction pertains to the skill matrix of board members, which outlines the expertise and experience of each member, including a proposal to appoint Amane Kojima as a director at the upcoming shareholders’ meeting. This announcement highlights Wacom’s commitment to transparency and the strategic alignment of its board’s skills with the company’s global business objectives.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom Board Opposes Shareholder Proposal for Director Election
May 17, 2025

Wacom Co., Ltd.’s Board of Directors has resolved to oppose a shareholder proposal submitted by AVI Japan Opportunity Trust PLC at the upcoming Ordinary Shareholders’ Meeting. The proposal includes the election of a director and several amendments to the Articles of Incorporation. The Board believes its current governance structure, which emphasizes diversity and expertise, is sufficient and that the proposed candidate lacks necessary management experience, thus opposing the proposal to maintain the company’s strategic direction and enhance shareholder value.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom Proposes Amendments to Enhance Corporate Governance
May 16, 2025

Wacom Co., Ltd. has announced a proposal to amend its Articles of Incorporation, which will be presented at the upcoming Ordinary Shareholders’ Meeting. The key change involves shifting the decision-making authority for the distribution of surplus funds from the Board of Directors to the Shareholders’ Meeting, aligning with modern corporate governance practices. Additionally, an outdated rule regarding auditor liability will be removed, reflecting the expiration of the statute of limitations for claims against former auditors. These amendments are aimed at enhancing corporate governance and shareholder engagement.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom Announces Board of Directors Change
May 16, 2025

Wacom Co., Ltd. announced the appointment of Amane Kojima as a new candidate for its Board of Directors, pending approval at the upcoming shareholders’ meeting. This change follows the retirement of current Director Sadao Yamamoto and is expected to bring fresh financial expertise to the company’s leadership, potentially impacting its strategic direction and stakeholder engagement.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom Unveils ‘Wacom Chapter 4’ Business Plan for FY2025-2028
May 9, 2025

Wacom Co., Ltd. announced its new medium-term business plan, ‘Wacom Chapter 4,’ aimed at enhancing the digital inking experience from FY2025 to FY2028. The plan focuses on technological innovation, community engagement, and sustainable growth, with targets of 150 billion yen in sales and 15 billion yen in operating profit by FY2028. The company also aims to improve corporate value through profit-generating capabilities and market evaluation, with a strong emphasis on shareholder returns and strategic investments.

Wacom Co. to Cancel 11 Million Treasury Shares
May 9, 2025

Wacom Co., Ltd. announced the cancellation of 11 million shares of its treasury stock, representing 7.53% of its outstanding shares, as part of a strategic move to optimize its capital structure. This decision, effective May 16, 2025, is expected to enhance shareholder value and reflects the company’s commitment to efficient capital management.

Wacom Announces Stable Dividend Payment for FY 2025
May 9, 2025

Wacom Co., Ltd. announced a dividend payment of 22.00 yen per share for the fiscal year ended March 31, 2025, maintaining its commitment to stable and sustainable shareholder returns. This decision reflects the company’s policy to enhance future business development while ensuring financial soundness and aligns with their strategy to increase dividends over the medium to long term.

Wacom Co., Ltd. Reports FY 3/2025 Financial Results with Improved Profitability
May 9, 2025

Wacom Co., Ltd. reported its consolidated financial results for FY 3/2025, showing a slight decline in net sales by 2.6% to 115,681 million yen. However, the company experienced a significant increase in operating profit by 44.7% and profit attributable to owners of the parent by 14.5%. Despite the decrease in net sales, the company’s profitability improved, reflecting effective cost management and operational efficiency. The dividend per share increased to 22 yen, indicating a commitment to returning value to shareholders. The forecast for FY 3/2026 projects a further decline in net sales but an increase in profits, suggesting a focus on enhancing profitability amid challenging market conditions.

Wacom Receives Shareholder Proposal for Upcoming Meeting
May 8, 2025

Wacom Co., Ltd. has received a shareholder proposal from AVI Japan Opportunity Trust PLC for consideration at its upcoming 42nd Ordinary Shareholders’ Meeting in June 2025. The company’s Board of Directors will announce their opinion on the proposal once it is determined, indicating potential impacts on corporate governance and shareholder relations.

Wacom Revises Financial Forecasts and Increases Dividend for FY2024
Apr 23, 2025

Wacom Co., Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2025, noting an upward adjustment in operating profit and a downward revision in net profit due to an extraordinary loss from business restructuring expenses. Despite these changes, Wacom has increased its dividend forecast, reflecting its commitment to shareholder returns and financial stability as part of its ‘Wacom Chapter 3’ business direction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025