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Wood One Co., Ltd. (JP:7898)
:7898
Japanese Market

Wood One Co., Ltd. (7898) AI Stock Analysis

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JP

Wood One Co., Ltd.

(7898)

Rating:65Neutral
Price Target:
¥875.00
▲(6.32%Upside)
Despite attractive valuation metrics, the stock's overall score is moderated by bearish technical indicators and concerns over cash flow management. The company displays financial resilience but needs to address cash flow issues to improve investor confidence.

Wood One Co., Ltd. (7898) vs. iShares MSCI Japan ETF (EWJ)

Wood One Co., Ltd. Business Overview & Revenue Model

Company DescriptionWood One Co., Ltd. (7898) is a Japanese company primarily engaged in the manufacture and sale of wooden building materials. The company's product lineup includes wooden flooring, wall materials, and other interior furnishing products, catering to both residential and commercial construction sectors. With a focus on sustainability and quality, Wood One Co., Ltd. utilizes advanced technologies to provide eco-friendly solutions that meet modern architectural demands.
How the Company Makes MoneyWood One Co., Ltd. generates revenue through the production and sale of its wooden building materials. The company supplies these materials to construction firms, retailers, and distributors, both domestically and internationally. By leveraging its robust distribution network, Wood One Co., Ltd. capitalizes on the growing demand for sustainable building solutions. Key revenue streams include sales of wooden flooring, wall panels, and other interior products, supported by strategic partnerships with construction companies and retail chains. Additionally, the company's commitment to innovation and sustainability helps bolster its market position and drive sales growth.

Wood One Co., Ltd. Financial Statement Overview

Summary
Wood One Co., Ltd. shows a commendable recovery in profitability and operational efficiency, with improved margins and a stable balance sheet. However, the negative free cash flow and historical volatility in earnings highlight areas needing attention.
Income Statement
68
Positive
The company has shown resilience with a modest revenue growth of 0.58% in the latest year after a previous decline. Gross profit margin improved to 27.12%, indicating better cost management, although net profit margin significantly recovered from -3.57% to 2.73%, showing a return to profitability. The EBIT and EBITDA margins also improved, reflecting operational efficiency. However, the volatility in net income over the years suggests potential risks.
Balance Sheet
72
Positive
The company maintains a stable financial position with an equity ratio of 43.8%, providing a solid buffer against liabilities. The debt-to-equity ratio is 0.89, indicating balanced leverage. Return on equity improved to 3.98%, reflecting better profitability. Despite this, the company should continue to monitor its debt levels to maintain financial stability.
Cash Flow
60
Neutral
The company's cash flow management shows mixed results. Operating cash flow is positive, yet the free cash flow remains negative, reflecting high capital expenditures. The operating cash flow to net income ratio improved, suggesting better cash conversion efficiency, but the negative free cash flow stresses the need for effective capital allocation.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue64.29B65.16B64.78B65.83B66.58B59.08B
Gross Profit16.93B17.68B15.72B17.46B19.27B18.06B
EBITDA4.19B6.85B1.55B4.21B5.64B5.38B
Net Income-22.00M1.78B-2.31B365.00M1.31B1.17B
Balance Sheet
Total Assets102.58B102.11B101.75B97.02B95.06B91.14B
Cash, Cash Equivalents and Short-Term Investments4.86B5.44B5.16B4.55B5.48B8.38B
Total Debt40.67B39.93B39.72B36.60B33.64B35.62B
Total Liabilities57.24B56.49B57.04B52.62B50.88B50.02B
Stockholders Equity44.46B44.71B43.86B43.35B43.15B40.23B
Cash Flow
Free Cash Flow0.00-440.00M-933.00M-3.34B940.00M-960.00M
Operating Cash Flow0.003.98B4.03B109.00M4.60B4.09B
Investing Cash Flow0.00-3.63B-5.07B-2.94B-3.92B-5.27B
Financing Cash Flow0.0071.00M1.53B1.94B-3.80B2.83B

Wood One Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price823.00
Price Trends
50DMA
832.24
Negative
100DMA
873.79
Negative
200DMA
840.25
Negative
Market Momentum
MACD
-3.25
Negative
RSI
46.26
Neutral
STOCH
52.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7898, the sentiment is Negative. The current price of 823 is above the 20-day moving average (MA) of 819.40, below the 50-day MA of 832.24, and below the 200-day MA of 840.25, indicating a bearish trend. The MACD of -3.25 indicates Negative momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7898.

Wood One Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥25.93B14.75
5.12%1.57%20.22%
72
Outperform
¥5.87B58.04
2.47%4.82%-89.35%
65
Neutral
¥8.13B7.86
5.18%8.65%84.32%
65
Neutral
¥7.64B4.29
2.93%0.58%
64
Neutral
£1.70B10.486.12%260.21%0.58%-32.48%
55
Neutral
¥7.70B117.73
5.75%2.17%-101.54%
52
Neutral
¥9.94B3.86
4.44%-0.65%-100.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7898
Wood One Co., Ltd.
819.00
-69.77
-7.85%
JP:7822
Eidai Co., Ltd.
226.00
-6.21
-2.67%
JP:7887
Nankai Plywood Co., Ltd.
5,990.00
-407.62
-6.37%
JP:7955
Cleanup Corporation
705.00
3.72
0.53%
JP:8119
Sanyei Corporation
808.00
133.46
19.79%
JP:9827
Lilycolor Co., Ltd.
637.00
10.15
1.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025