Wacom Co (6727) AI Stock Analysis

• Market Cap: ¥109.25B
• Dividend Yield: 4.06%
• Average Volume (3M): 289.75K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.34
• Revenue Growth: -8.93%
• EPS Growth: 48.98%
• Country: JP
• Employees: 1,066
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 24.58
• Shares Outstanding: 135,000,000
• 10 Day Avg. Volume: 275,230
• 30 Day Avg. Volume: 289,753
• PEG Ratio: 0.63
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 10.91
• 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: 72 Outperform
• Price Target: ¥910.00 ▲(11.66% Upside)

The score is driven primarily by improved TTM financial performance (better margins, solid ROE, and strong free cash flow), supported by reasonable valuation and a high dividend yield. Technicals are moderately positive due to price strength vs. moving averages, but negative MACD and mixed momentum indicators temper the overall rating.

Positive Factors

Free Cash Flow

Consistent TTM operating cash flow (~13.8B) and substantial FCF (~12.0B), aligned at ~87% of net income, indicate high-quality earnings and strong internal funding capacity. Durable cash generation supports R&D, dividends, or buybacks and enhances resilience across cycles.

Improved Profitability

Improved TTM margins and a solid ROE (~18%) point to stronger unit economics and efficient capital deployment. For a product plus licensing business, healthier gross and operating margins support reinvestment in IP and product development, reinforcing long-term competitive positioning.

Low Leverage

Low and improving debt-to-equity provides balance-sheet flexibility to fund product development and OEM relationships without heavy reliance on external financing. Manageable leverage reduces solvency risk and preserves strategic optionality during demand downturns.

Negative Factors

Uneven Revenue Trend

A multi-year, uneven revenue pattern with a recent annual decline (~-2.6%) highlights sensitivity to hardware demand cycles and end-market variability. For a hardware-centric firm, this cyclicality weakens visibility into sustainable top-line growth and complicates multi-quarter investment planning.

Historical Cash-Flow Volatility

While recent FCF is strong, historical episodes of negative operating and free cash flow show inconsistent cash conversion. This volatility raises execution risk for maintaining payouts and funding innovation, necessitating larger liquidity buffers or conservative capital allocation policies.

Inconsistent Capital Base Growth

Fluctuating equity and asset levels suggest the company has struggled to steadily expand its capital base. Limited and inconsistent scale can restrict sustained R&D investment, global expansion, and bargaining power with channels, constraining longer-term strategic initiatives.

Wacom Co Business Overview & Revenue Model

Company Description

Wacom Co., Ltd. (6727) is a leading global provider of digital pen tablets, interactive pen displays, and stylus technology. Founded in 1983, the company operates primarily in the sectors of digital art, design, and education, offering innovative solutions that enhance creativity and productivity. Wacom's core products include the Intuos and Cintiq series tablets, as well as software solutions that support various applications, from graphic design and illustration to animation and 3D modeling.

How the Company Makes Money

Wacom generates revenue primarily through the sale of its hardware products, including pen tablets and displays, which are popular among artists, designers, and professionals in various fields. Additionally, the company offers software solutions and services that complement its hardware, contributing to its revenue. Wacom's business model is further supported by strategic partnerships with software developers and companies in the creative industry, which help to create an integrated ecosystem that enhances user experience and drives sales. The company also benefits from recurring revenue through the sale of accessories and software licenses, as well as collaborations with educational institutions and enterprises that promote the use of Wacom products in professional and academic settings.

Wacom Co Financial Statement Overview

Summary

TTM fundamentals show a rebound with modest revenue growth (~3.8%), improved profitability (gross ~36.9%, operating ~9.3%, net ~6.6%), solid ROE (~18%), and strong free cash flow (~12.0B) with good earnings alignment (~87% of net income). Offsetting this, results and cash flows have been historically volatile and the multi-year revenue/profit trend is uneven.

Income Statement

TTM (Trailing-Twelve-Months) shows a return to healthier profitability: revenue grew ~3.8% and margins improved versus the latest annual period (gross margin ~36.9%, operating margin ~9.3%, net margin ~6.6%). That said, the most recent annual year had a revenue decline (~-2.6%) and the multi-year pattern is uneven (strong FY2021, weaker FY2022–FY2024, then improvement into TTM), suggesting earnings power can be cyclical and less predictable.

Balance Sheet

Leverage looks manageable with low-to-moderate debt relative to equity (TTM debt-to-equity ~0.25, improved from ~0.39 in recent annual periods), which supports balance-sheet resilience. Profitability on shareholder capital is also solid (TTM return on equity ~18%). The main watch-out is that equity and assets have fluctuated over time, indicating the capital base hasn’t grown consistently and could be sensitive to operating swings.

Cash Flow

TTM cash generation is strong with positive operating cash flow (~13.8B) and free cash flow (~12.0B), and free cash flow is up sharply versus the prior annual period. Free cash flow is fairly well aligned with earnings (free cash flow is ~87% of net income in TTM), which supports quality of profits. Offsetting this, cash flow has been volatile historically (including negative operating and free cash flow in some earlier annual periods), and cash conversion remains only moderate based on the provided cash-flow coverage figure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	115.68B	118.79B	112.73B	108.79B	108.53B
Gross Profit	40.15B	36.77B	31.17B	39.61B	41.41B
EBITDA	9.11B	8.57B	4.43B	16.46B	16.36B
Net Income	5.22B	4.56B	1.79B	10.95B	10.23B
Balance Sheet
Total Assets	70.77B	79.62B	75.28B	73.33B	71.18B
Cash, Cash Equivalents and Short-Term Investments	24.36B	31.66B	20.02B	21.79B	32.04B
Total Debt	12.00B	14.00B	9.00B	2.00B	6.00B
Total Liabilities	39.91B	43.65B	34.79B	29.83B	33.49B
Stockholders Equity	30.86B	35.97B	40.49B	43.50B	37.69B
Cash Flow
Free Cash Flow	7.41B	15.16B	-2.60B	-1.76B	13.35B
Operating Cash Flow	8.33B	17.48B	-1.06B	-235.53M	14.58B
Investing Cash Flow	-2.27B	-2.28B	-3.14B	-1.37B	-1.38B
Financing Cash Flow	-13.17B	-6.43B	1.07B	-10.52B	-4.05B

Wacom Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 815.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 815 is above the 20-day moving average (MA) of 797.65, above the 50-day MA of 803.54, and above the 200-day MA of 723.55, indicating a bullish trend. The MACD of -4.73 indicates Negative momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6727.

Wacom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6670	79 Outperform	¥154.68B	10.76	―	2.70%	10.23%	8.78%
7739	76 Outperform	¥148.12B	22.80	―	1.92%	7.46%	-8.01%
6727	72 Outperform	¥109.25B	15.14	17.33%	4.06%	-8.93%	48.98%
6750	72 Outperform	¥149.34B	12.28	12.77%	2.84%	4.48%	22.39%
6737	69 Neutral	¥88.47B	17.74	―	4.76%	1.81%	9.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6588	55 Neutral	¥146.22B	-21.61	-6.22%	1.61%	-4.91%	-136.94%

Wacom Co Corporate Events

Wacom Lifts Profit Outlook and Hikes Dividend on Strong Branded Business

Wacom has raised its full-year profit forecasts for the fiscal year ending March 31, 2026, keeping net sales unchanged at ¥110 billion but lifting operating and ordinary profit projections by 13% each to ¥13 billion and increasing net profit attributable to owners of the parent by 10.6% to ¥9.4 billion. The upgrade reflects stronger-than-expected performance in its Branded Business, cost controls including reduced SG&A expenses, and updated foreign exchange assumptions, while the Technology Solution Business is tracking broadly in line with initial expectations. The company also announced a higher year-end dividend forecast, boosting the payout from ¥11 to ¥15 per share through a ¥1 increase in the ordinary dividend and a ¥3 commemorative dividend tied to its receipt of the prestigious Ub Iwerks Award at the Annie Awards, raising the full-year dividend forecast to ¥26 per share and underscoring Wacom’s commitment to progressive shareholder returns and a total return ratio of at least 50%.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen813.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom Lifts Profits and Dividend Despite Lower Sales in Q3 FY2026

Wacom reported consolidated net sales of ¥81.6 billion for the first nine months of fiscal 2025–26, a 6.7% year-on-year decline, but significantly improved profitability, with operating profit up 30.0% to ¥9.9 billion and profit attributable to owners of parent rising 38.3% to ¥7.4 billion, helped by better margins and a stronger capital position that lifted its capital ratio to 48.2%. Despite the lower top line, the company raised full-year profit guidance while forecasting a 4.9% decline in annual sales to ¥110.0 billion, and it plans to increase total annual dividends to ¥26 per share, including a commemorative year-end component, underscoring management’s confidence and delivering higher returns to shareholders amid a shrinking share count from reduced treasury stock.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen813.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom to Switch Audit Firm from PwC Japan to KPMG AZSA in 2026

Wacom Co., Ltd. has resolved to change its certified public accountant, proposing KPMG AZSA LLC as its new accounting auditor in place of PricewaterhouseCoopers Japan LLC, with the transition scheduled to be formally approved at the 43rd Ordinary Shareholders’ Meeting in late June 2026. The Audit Committee cited the long tenure of the current auditor and the desire for a fresh audit perspective as key reasons for the move, noting that KPMG AZSA LLC meets its criteria for expertise, independence, quality control, and global audit capabilities, while the outgoing auditor raised no specific objections and recent audit reports carried no particular issues.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen813.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.

Wacom to Acquire RE-X Expansion and Launch New Community-Based IT Business in Power and Environmental Fields

Wacom will acquire all shares of RE-X Expansion Inc., an IT systems and consulting firm specializing in the power and environmental sectors, turning it into a subsidiary and using it as the platform for a new business focused on community-based, co-creation projects. The move is intended to create synergies with Wacom’s Chapter 4 strategy by combining RE-X Expansion’s know-how in regional, sustainability-focused digital projects and business development with Wacom’s community-centric approach, strengthening its sustainability management, enhancing IT and project capabilities, and reinforcing its management base beyond the current mid-term plan; founder Takafumi Nakajima will join Wacom’s executive team to drive business execution and growth in the new domain.

The most recent analyst rating on (JP:6727) stock is a Hold with a Yen813.00 price target. To see the full list of analyst forecasts on Wacom Co stock, see the JP:6727 Stock Forecast page.