WA, Inc. (7683) AI Stock Analysis

• Market Cap: ¥26.52B
• Dividend Yield: 1.05%
• Average Volume (3M): 30.26K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.51
• Revenue Growth: 2.95%
• EPS Growth: -24.92%
• Country: JP
• Employees: 512
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 1.31
• Shares Outstanding: 19,079,120
• 10 Day Avg. Volume: 35,840
• 30 Day Avg. Volume: 30,260
• PEG Ratio: -1.64
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 47.49
• 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: 76 Outperform
• Price Target: ¥1,502.00 ▲(11.84% Upside)

WA, Inc. demonstrates strong financial health with robust revenue growth and solid balance sheet metrics, which are the most significant factors in its overall score. Technical analysis indicates stable price trends with a slight bullish momentum. The valuation is reasonable, with a fair P/E ratio and modest dividend yield. The absence of earnings call and corporate events data did not impact the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Balance Sheet Strength

A strong balance sheet with high equity and low leverage provides financial resilience and flexibility for future investments and growth.

Cash Flow Management

Effective cash flow management supports sustainable growth and allows the company to invest in strategic initiatives without over-reliance on external financing.

Negative Factors

Declining Net Profit Margins

Decreasing net profit margins could indicate rising costs or inefficiencies, potentially impacting long-term profitability if not addressed.

Declining ROE

A declining ROE may reflect diminishing efficiency in generating profits from shareholders' equity, affecting investor confidence and capital allocation.

Operational Cost Pressures

Rising operational costs can erode profit margins and reduce competitiveness, necessitating strategic cost management to maintain financial health.

WA, Inc. Business Overview & Revenue Model

Company Description

WA, Inc. (7683) is a diversified technology company specializing in software solutions and digital services across various sectors including finance, healthcare, and education. With a strong focus on innovation, WA, Inc. develops cloud-based platforms that enhance operational efficiency and optimize customer engagement. The company’s core products include enterprise resource planning (ERP) software, customer relationship management (CRM) systems, and data analytics tools designed to meet the evolving needs of businesses worldwide.

How the Company Makes Money

WA, Inc. generates revenue primarily through a subscription-based model for its software products, allowing clients to access its platforms on a recurring basis. Key revenue streams include licensing fees from the sale of its software solutions, maintenance and support services, and professional consulting services that help clients implement and customize their systems. Additionally, WA, Inc. has established strategic partnerships with major technology firms, enhancing its market reach and facilitating access to new customer segments. The company's focus on continuous innovation and customer satisfaction further contributes to its earnings by fostering long-term client relationships and reducing churn.

WA, Inc. Financial Statement Overview

Summary

WA, Inc. exhibits a strong financial position with impressive revenue growth and solid profitability margins. The balance sheet is robust, with low leverage and high equity, providing financial stability. Cash flow management is effective, supporting the company's growth initiatives. While there are some concerns regarding declining net profit margins and ROE, the company's financial health remains strong.

Income Statement

WA, Inc. has demonstrated strong revenue growth over the years, with a notable increase in total revenue from $13.08 billion in 2021 to $22.8 billion in 2025. The gross profit margin has remained robust, averaging around 60%, indicating efficient cost management. However, the net profit margin has seen some fluctuations, with a decline in recent years, which may suggest increasing operational costs or other financial pressures. Despite this, the company maintains a healthy EBIT and EBITDA margin, reflecting solid operational performance.

Balance Sheet

The balance sheet of WA, Inc. is strong, characterized by a high equity ratio, which has consistently been above 80%, indicating financial stability and low leverage. The debt-to-equity ratio is low, reflecting conservative financial management and minimal reliance on debt financing. Return on equity (ROE) has shown a downward trend, which could be a concern if it continues, but overall, the company is well-capitalized with a substantial equity base.

Cash Flow

WA, Inc. has shown positive free cash flow growth, with free cash flow increasing from $102.6 million in 2023 to $503 million in 2025. The operating cash flow to net income ratio indicates strong cash generation relative to net income, although there was a significant drop in operating cash flow in 2021. The company has managed capital expenditures effectively, supporting its growth while maintaining positive free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.29B	22.80B	21.26B	17.60B	15.70B	13.08B
Gross Profit	14.10B	14.02B	13.40B	11.31B	10.11B	8.18B
EBITDA	2.12B	2.17B	2.22B	1.63B	1.59B	995.27M
Net Income	1.01B	996.00M	1.16B	689.17M	707.57M	239.86M
Balance Sheet
Total Assets	13.78B	13.13B	12.38B	10.83B	10.07B	9.01B
Cash, Cash Equivalents and Short-Term Investments	2.68B	2.90B	3.30B	3.41B	3.70B	2.71B
Total Debt	500.00M	315.71M	373.36M	397.45M	274.68M	350.04M
Total Liabilities	2.83B	2.39B	2.44B	2.07B	1.96B	1.66B
Stockholders Equity	10.94B	10.75B	9.94B	8.76B	8.11B	7.34B
Cash Flow
Free Cash Flow	0.00	503.00M	366.84M	102.62M	1.31B	-490.76M
Operating Cash Flow	0.00	918.00M	605.45M	314.92M	1.46B	-303.66M
Investing Cash Flow	0.00	-653.00M	-428.88M	-555.78M	-136.01M	-457.05M
Financing Cash Flow	0.00	-624.00M	-441.50M	-416.11M	-350.97M	-451.46M

WA, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1343.00
• 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:7683, the sentiment is Positive. The current price of 1343 is below the 20-day moving average (MA) of 1379.65, below the 50-day MA of 1363.60, and above the 200-day MA of 1325.99, indicating a bullish trend. The MACD of 4.23 indicates Positive momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 29.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7683.

WA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7683	76 Outperform	¥26.52B	29.71	―	1.05%	2.95%	-24.92%
8018	70 Outperform	¥28.42B	61.52	―	5.84%	-2.38%	-77.89%
8008	67 Neutral	¥39.04B	24.18	―	4.71%	48.00%	16.54%
8185	66 Neutral	¥34.80B	16.98	―	4.07%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3415	55 Neutral	¥19.07B	18.83	―	1.08%	17.48%	83.54%
3548	53 Neutral	¥28.34B	-13.02	―	4.99%	-7.21%	-5127.88%

WA, Inc. Corporate Events

WA, Inc. Revises Financial Forecast Amid Operational Challenges

WA, Inc. has revised its full-year consolidated financial results forecast due to underperformance in sales and various operational challenges. The company anticipates a significant decline in net sales and profits compared to previous forecasts, influenced by sluggish store sales, a fiscal period change for its Hong Kong subsidiary, and increased operational costs, including store closures and currency depreciation. Despite these challenges, the company plans to maintain its dividend and shareholder benefit program.

The most recent analyst rating on (JP:7683) stock is a Buy with a Yen1502.00 price target. To see the full list of analyst forecasts on WA, Inc. stock, see the JP:7683 Stock Forecast page.

WA, Inc. Reports Financial Results for Nine Months Ending October 2025

WA, Inc. reported its consolidated financial results for the nine months ending October 31, 2025, under Japanese GAAP. The company experienced a modest increase in net sales by 2.6% year-on-year, reaching ¥16,815 million. However, operating profit and ordinary profit saw significant declines of 32.9% and 17.2%, respectively. The profit attributable to owners of the parent also decreased by 17.0%. The company’s equity-to-asset ratio remained stable at around 81.7%. Despite the financial challenges, WA, Inc. revised its earnings forecast for the fiscal year ending January 31, 2026, projecting a 4.8% increase in net sales but anticipating a decline in operating profit by 23.0%. The dividend forecast remains unchanged, with a total annual dividend of 17.00 yen per share expected.

The most recent analyst rating on (JP:7683) stock is a Buy with a Yen1502.00 price target. To see the full list of analyst forecasts on WA, Inc. stock, see the JP:7683 Stock Forecast page.