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

• Market Cap: ¥7.64B
• Dividend Yield: 2.93%
• Average Volume (3M): 14.98K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.61
• Revenue Growth: 0.58%
• EPS Growth: N/A
• Country: JP
• Employees: 2,222
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 95.81
• Shares Outstanding: 9,841,969
• 10 Day Avg. Volume: 13,750
• 30 Day Avg. Volume: 14,976
• PEG Ratio: 8.72
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.54
• 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

• Rating: 65 Neutral
• 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. Business Overview & Revenue Model

Company Description

Wood 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 Money

Wood 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	64.29B	65.16B	64.78B	65.83B	66.58B	59.08B
Gross Profit	16.93B	17.68B	15.72B	17.46B	19.27B	18.06B
EBITDA	4.19B	6.85B	1.55B	4.21B	5.64B	5.38B
Net Income	-22.00M	1.78B	-2.31B	365.00M	1.31B	1.17B
Balance Sheet
Total Assets	102.58B	102.11B	101.75B	97.02B	95.06B	91.14B
Cash, Cash Equivalents and Short-Term Investments	4.86B	5.44B	5.16B	4.55B	5.48B	8.38B
Total Debt	40.67B	39.93B	39.72B	36.60B	33.64B	35.62B
Total Liabilities	57.24B	56.49B	57.04B	52.62B	50.88B	50.02B
Stockholders Equity	44.46B	44.71B	43.86B	43.35B	43.15B	40.23B
Cash Flow
Free Cash Flow	0.00	-440.00M	-933.00M	-3.34B	940.00M	-960.00M
Operating Cash Flow	0.00	3.98B	4.03B	109.00M	4.60B	4.09B
Investing Cash Flow	0.00	-3.63B	-5.07B	-2.94B	-3.92B	-5.27B
Financing Cash Flow	0.00	71.00M	1.53B	1.94B	-3.80B	2.83B

Wood One Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 823.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	77 Outperform	¥25.93B	14.75		5.12%	1.57%	20.22%
7887	72 Outperform	¥5.87B	58.04		2.47%	4.82%	-89.35%
8119	65 Neutral	¥8.13B	7.86		5.18%	8.65%	84.32%
7898	65 Neutral	¥7.64B	4.29		2.93%	0.58%	―
Sector *	64 Neutral	£1.70B	10.48	6.12%	260.21%	0.58%	-32.48%
9827	55 Neutral	¥7.70B	117.73		5.75%	2.17%	-101.54%
7822	52 Neutral	¥9.94B	3.86		4.44%	-0.65%	-100.90%