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

• Market Cap: ¥10.14B
• Dividend Yield: 4.26%
• Average Volume (3M): 9.98K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.29
• Revenue Growth: -1.52%
• EPS Growth: -7.80%
• Country: JP
• Employees: 460
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 13.61
• Shares Outstanding: 16,118,166
• 10 Day Avg. Volume: 13,610
• 30 Day Avg. Volume: 9,980
• PEG Ratio: -1.38
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 4.59
• 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: 82 Outperform
• Price Target: ¥695.00 ▲(9.79% 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.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates minimal financial leverage and risk, supporting long-term stability and financial flexibility.

Cash Generation Ability

Strong cash generation from operations ensures the company can fund its growth initiatives and maintain financial health over time.

Operational Efficiency

Efficient operational management as indicated by healthy margins supports sustained profitability and competitive positioning.

Negative Factors

EPS Growth Decline

Negative EPS growth suggests challenges in increasing profitability, which could impact investor confidence and future earnings potential.

Revenue Growth Stagnation

Moderate revenue growth may signal market saturation or competitive pressures, potentially limiting future expansion opportunities.

Industry Competition

Operating in a competitive automotive sector, the company faces pressure from rivals, which could affect market share and pricing power.

Weds Co., Ltd. Business Overview & Revenue Model

Company Description

Weds Co., Ltd. (7551) is a leading company in the automotive industry, primarily engaged in the design, manufacturing, and sales of automotive wheels and related components. The company operates in multiple sectors including automotive parts and accessories, focusing on high-performance and custom wheels for both domestic and international markets. Weds Co. is known for its innovative designs and quality craftsmanship, catering to a diverse clientele ranging from individual consumers to large automotive manufacturers.

How the Company Makes Money

Weds Co., Ltd. generates revenue through the sale of automotive wheels and accessories, capitalizing on both direct sales to consumers and wholesale distribution to automotive manufacturers and retailers. The company has established key partnerships with various automotive brands, enhancing its market presence and driving sales. Revenue streams include standard wheel products, custom orders, and collaborations on special projects. Additionally, Weds Co. benefits from its reputation for quality and innovation, allowing it to command premium pricing for its products. The company's participation in automotive trade shows and events also helps to increase brand visibility and attract new customers.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	35.06B	35.14B	34.78B	36.50B	34.77B	30.11B
Gross Profit	7.59B	7.53B	7.23B	7.81B	6.48B	6.10B
EBITDA	2.77B	2.76B	2.79B	3.08B	1.90B	1.75B
Net Income	1.43B	1.43B	1.51B	1.76B	863.13M	843.00M
Balance Sheet
Total Assets	24.78B	25.87B	24.96B	23.97B	22.48B	20.67B
Cash, Cash Equivalents and Short-Term Investments	7.99B	8.87B	7.58B	6.59B	5.00B	4.90B
Total Debt	1.30B	1.32B	1.60B	1.71B	1.83B	2.13B
Total Liabilities	6.23B	7.05B	7.23B	7.40B	7.26B	6.76B
Stockholders Equity	16.88B	17.11B	16.15B	15.10B	13.86B	12.66B
Cash Flow
Free Cash Flow	0.00	2.14B	1.60B	2.09B	396.09M	809.34M
Operating Cash Flow	0.00	2.43B	1.84B	2.20B	550.67M	1.64B
Investing Cash Flow	0.00	-509.56M	-119.69M	-97.46M	-42.75M	-288.89M
Financing Cash Flow	0.00	-833.93M	-729.54M	-512.25M	-565.81M	1.05B

Weds Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 633.00
• 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:7551, the sentiment is Positive. The current price of 633 is above the 20-day moving average (MA) of 630.20, above the 50-day MA of 627.83, and above the 200-day MA of 607.76, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 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	¥10.14B	7.38	―	4.26%	-1.52%	-7.80%
7228	81 Outperform	¥9.36B	7.65	―	3.19%	5.38%	5.29%
7218	76 Outperform	¥10.60B	5.86	―	3.23%	-3.24%	-26.11%
7247	75 Outperform	¥13.05B	5.20	―	3.60%	-1.72%	168.62%
7273	66 Neutral	¥21.92B	8.11	―	3.30%	34.99%	468.97%
5985	66 Neutral	¥31.02B	8.91	―	0.43%	7.65%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%