WA, Inc. (7683) AI Stock Analysis

• Market Cap: ¥25.32B
• Dividend Yield: 1.09%
• Average Volume (3M): 29.97K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.54
• Revenue Growth: 4.98%
• EPS Growth: -10.80%
• Country: JP
• Employees: 512
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 25.17
• Shares Outstanding: 19,079,120
• 10 Day Avg. Volume: 35,910
• 30 Day Avg. Volume: 29,966
• 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: ¥1,500.00
• Price Target Upside: 12.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥1,500.00 ▲(12.28% Upside)

WA, Inc. has a strong financial foundation with impressive revenue growth and a robust balance sheet. Technical indicators show moderate bullish sentiment, while valuation metrics suggest the stock is fairly valued. The absence of earnings call and corporate events data does not impact the overall positive outlook.

WA, Inc. Business Overview & Revenue Model

Company Description

WA, Inc. engages in the planning and sale of women's shoes through stores and online stores in Japan. It offers its products under the ORiental Traffic, WA ORiental Traffic, ORTR, NICAL, KIDS, and WA!KARU brands. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WA, Inc. generates revenue through multiple channels, with the primary sources being software licensing fees, subscription services, and consultancy services. The company charges clients for licensing its proprietary software, which provides businesses with essential tools for managing their operations. Additionally, WA, Inc. offers subscription-based cloud services that allow customers to access its software solutions on a pay-as-you-go basis, ensuring a steady revenue stream. Consultancy services also contribute significantly to the company’s earnings, as clients seek expert advice on technology implementation and digital transformation strategies. Key partnerships with major cloud service providers and technology firms enhance WA, Inc.'s market reach and facilitate joint ventures that further boost revenue potential.

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. However, concerns about declining net profit margins and ROE slightly temper the overall financial performance.

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	2.27B	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: 1336.00
• 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:7683, the sentiment is Positive. The current price of 1336 is above the 20-day moving average (MA) of 1319.05, above the 50-day MA of 1305.34, and above the 200-day MA of 1298.99, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 62.43 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	¥25.32B	24.93	―	1.09%	4.98%	-10.80%
8018	73 Outperform	¥26.11B	12.34	―	6.19%	3.81%	-4.07%
8008	67 Neutral	¥36.98B	24.88	―	4.77%	48.00%	16.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8185	61 Neutral	¥32.19B	15.60	―	4.42%	-9.86%	-14.02%
3415	60 Neutral	¥19.07B	20.63	―	1.10%	10.04%	152.67%
3548	53 Neutral	¥27.37B	―	―	5.07%	-7.21%	-5127.88%

WA, Inc. Corporate Events

WA, Inc. Reports Q1 2025 Financial Results with Mixed Outcomes

WA, Inc. reported its consolidated financial results for the three months ended April 30, 2025, showing a modest increase in net sales by 2% compared to the previous year. However, the company faced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. Despite these declines, the company forecasts a positive outlook for the fiscal year ending January 31, 2026, with expected increases in net sales and profits, suggesting strategic efforts to enhance financial performance.