Weds Co., Ltd. (7551) AI Stock Analysis

• Market Cap: ¥10.25B
• Dividend Yield: 4.31%
• Average Volume (3M): 16.04K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.29
• Revenue Growth: 0.94%
• EPS Growth: -1.43%
• Country: JP
• Employees: 460
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.16
• Shares Outstanding: 16,118,166
• 10 Day Avg. Volume: 30,260
• 30 Day Avg. Volume: 16,043
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥695.00
• Price Target Upside: 8.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥695.00 ▲(8.76% Upside)

Weds Co., Ltd. scores highly due to strong financial performance, supported by a robust balance sheet, effective cash management, and stable profitability. The attractive valuation with a low P/E ratio and high dividend yield further enhances its appeal. Technical analysis indicates a stable market position, contributing to a positive outlook. No earnings call or corporate events data were available for consideration.

Weds Co., Ltd. Business Overview & Revenue Model

Company Description

Weds Co., Ltd., together with its subsidiaries, engages in the planning and development, and sale of automobile parts and accessories in Japan. It is also involved in centering on aluminum and steel wheel services for automobiles. The company operates through Automotive-Related Wholesale Business, Logistics Business, Automotive Retail Business, and Welfare Business segments. In addition, it manufactures and sells wheels, as well as involved in elderly complex welfare, mobile agency, and rental businesses. Further, the company engages in product storage and cargo handling, and warehousing services. Additionally, it sells automobile wheels and car accessory parts. Furthermore, the company engages in leasing of real estate services. The company was formerly known as Nippo Co., Ltd. and changed its name to Weds Co., Ltd. in November 1973. Weds Co., Ltd. was founded in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Weds Co., Ltd. generates revenue through the sale of its automotive wheels and related products. The company offers a diverse range of wheel products that appeal to different market segments, including luxury vehicles, sports cars, and everyday vehicles. Weds Co., Ltd. also benefits from its involvement in motorsports, where it supplies specialized wheels for racing applications. This not only serves as a direct revenue stream but also enhances the brand's prestige and marketability. The company's revenue is further supported by its distribution network, which includes both domestic and international markets, allowing it to reach a broad customer base. Additionally, key partnerships with automotive manufacturers and distributors contribute to its earnings by expanding its market presence and facilitating sales.

Weds Co., Ltd. Financial Statement Overview

Summary

Weds Co., Ltd. exhibits strong financial health indicated by a robust income statement, a solid balance sheet with minimal leverage, and positive cash flow metrics. The company maintains stable revenue growth and profitability, supported by efficient operational management, low debt, and effective cash utilization.

Income Statement

Weds Co., Ltd. shows a robust financial performance in the TTM period. The company has a strong gross profit margin of 21.4% and a solid net profit margin of 4.1%. Revenue growth was moderate at 1.0%, indicating a stable market presence. EBIT and EBITDA margins were also healthy at 6.4% and 7.9%, respectively, demonstrating efficient operational management. Overall, the income statement reflects steady profitability and operational efficiency.

Balance Sheet

The balance sheet of Weds Co., Ltd. is strong, with a low debt-to-equity ratio of 0.08, highlighting minimal financial leverage and risk. The return on equity stands at 8.4%, indicating a reasonable profit generation from shareholder investments. The equity ratio is high at 66.1%, demonstrating a solid financial structure with substantial equity financing. The balance sheet is indicative of a financially stable company with low leverage.

Cash Flow

Cash flow analysis for Weds Co., Ltd. indicates positive trends. Operating cash flow to net income ratio is 1.7, showcasing strong cash generation from operations. Free cash flow increased by 33.9%, reflecting effective cash management. The free cash flow to net income ratio is 1.5, underscoring efficient cash utilization. Overall, cash flow metrics reveal a healthy cash position supporting the company's operations and growth.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	35.14B	34.78B	35.14B	36.50B	34.77B	30.87B
Gross Profit	7.53B	7.23B	7.53B	7.81B	6.48B	6.34B
EBITDA	2.76B	2.79B	2.76B	3.08B	1.90B	1.92B
Net Income	1.43B	1.51B	1.43B	1.76B	863.13M	1.00B
Balance Sheet
Total Assets	25.87B	24.96B	25.87B	23.97B	22.48B	21.54B
Cash, Cash Equivalents and Short-Term Investments	8.87B	7.58B	8.87B	6.59B	5.00B	5.05B
Total Debt	1.32B	1.60B	1.32B	1.71B	1.83B	1.99B
Total Liabilities	7.05B	7.23B	7.05B	7.40B	7.26B	6.87B
Stockholders Equity	17.11B	16.15B	17.11B	15.10B	13.86B	13.38B
Cash Flow
Free Cash Flow	0.00	1.60B	2.14B	2.09B	396.09M	704.29M
Operating Cash Flow	0.00	1.84B	2.43B	2.20B	550.67M	2.16B
Investing Cash Flow	0.00	-119.69M	-509.56M	-97.46M	-42.75M	-1.22B
Financing Cash Flow	0.00	-729.54M	-833.93M	-512.25M	-565.81M	-625.89M

Weds Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 639.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7551, the sentiment is Positive. The current price of 639 is below the 20-day moving average (MA) of 642.20, above the 50-day MA of 630.38, and above the 200-day MA of 607.63, indicating a neutral trend. The MACD of 3.49 indicates Positive momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7551.

Weds Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7551	82 Outperform	¥10.25B	7.17	―	4.31%	0.94%	-1.43%
7218	78 Outperform	¥10.50B	6.11	7.44%	3.25%	-7.85%	-34.41%
7228	77 Outperform	¥9.53B	7.78	14.04%	3.17%	7.41%	7.38%
7247	74 Outperform	¥12.62B	5.03	5.71%	3.83%	0.85%	94.79%
5985	68 Neutral	¥29.11B	8.36	-2.89%	0.52%	20.25%	―
7273	67 Neutral	¥21.16B	7.92	0.63%	3.40%	17.13%	429.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%