tiprankstipranks
Trending News
More News >
Wood One Co., Ltd. (JP:7898)
:7898
Japanese Market
Advertisement

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

Compare
0 Followers

Top Page

JP:7898

Wood One Co., Ltd.

(7898)

Rating:73Outperform
Price Target:
¥931.00
▲(11.50%Upside)
The overall stock score of Wood One Co., Ltd. is primarily driven by its strong valuation, with a notably low P/E ratio and reasonable dividend yield. The company's financial performance, with improved profitability and operational efficiency, supports this positive outlook, although negative free cash flow presents a cautionary note. Technical analysis further reinforces optimism with bullish momentum.

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

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

Company DescriptionWood One Co., Ltd. is a Japanese company specializing in the manufacturing and distribution of wooden building materials and home furnishings. The company operates in the construction and home improvement sectors, providing a wide range of high-quality wood products such as flooring, doors, and kitchen systems. With a focus on sustainable sourcing and production, Wood One Co., Ltd. is committed to delivering eco-friendly solutions to meet the needs of residential and commercial spaces.
How the Company Makes MoneyWood One Co., Ltd. generates revenue primarily through the sale of its wooden building materials and home furnishings. The company's key revenue streams include domestic and international sales of its flooring products, doors, and kitchen systems, which are marketed to both individual consumers and large-scale construction companies. Additionally, Wood One Co., Ltd. benefits from strategic partnerships with construction firms and real estate developers, enhancing its market reach and distribution capabilities. The company's earnings are also bolstered by its commitment to sustainability, allowing it to tap into the growing demand for eco-friendly building materials.

Wood One Co., Ltd. Financial Statement Overview

Summary
Wood One Co., Ltd. has shown a commendable recovery in profitability, 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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue65.16B64.78B65.83B66.58B59.08B
Gross Profit17.68B15.72B17.46B19.27B18.06B
EBITDA6.85B1.55B4.21B5.64B5.38B
Net Income1.78B-2.31B365.00M1.31B1.17B
Balance Sheet
Total Assets102.11B101.75B97.02B95.06B91.14B
Cash, Cash Equivalents and Short-Term Investments5.44B5.16B4.55B5.48B8.38B
Total Debt39.93B39.72B36.60B33.64B35.62B
Total Liabilities56.49B57.04B52.62B50.88B50.02B
Stockholders Equity44.71B43.86B43.35B43.15B40.23B
Cash Flow
Free Cash Flow-440.00M-933.00M-3.34B940.00M-960.00M
Operating Cash Flow3.98B4.03B109.00M4.60B4.09B
Investing Cash Flow-3.63B-5.07B-2.94B-3.92B-5.27B
Financing Cash Flow71.00M1.53B1.94B-3.80B2.83B

Wood One Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price835.00
Price Trends
50DMA
825.08
Positive
100DMA
861.76
Negative
200DMA
844.48
Negative
Market Momentum
MACD
5.85
Negative
RSI
50.29
Neutral
STOCH
56.14
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 835 is above the 20-day moving average (MA) of 833.20, above the 50-day MA of 825.08, and below the 200-day MA of 844.48, indicating a neutral trend. The MACD of 5.85 indicates Negative momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 56.14 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥26.45B15.04
4.31%1.57%20.22%
73
Outperform
¥7.91B4.44
2.83%0.58%
72
Outperform
¥5.84B57.75
2.49%4.82%-89.35%
65
Neutral
¥8.19B7.92
7.60%8.65%84.32%
62
Neutral
$16.51B10.46-8.28%3.32%1.44%-22.58%
55
Neutral
¥7.78B117.73
5.69%2.17%-101.54%
52
Neutral
¥10.52B3.86
4.26%-0.65%-100.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7898
Wood One Co., Ltd.
845.00
44.82
5.60%
JP:7822
Eidai Co., Ltd.
235.00
15.21
6.92%
JP:7887
Nankai Plywood Co., Ltd.
6,000.00
489.85
8.89%
JP:7955
Cleanup Corporation
725.00
72.51
11.11%
JP:8119
Sanyei Corporation
803.00
-2.13
-0.26%
JP:9827
Lilycolor Co., Ltd.
633.00
56.34
9.77%
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: Aug 01, 2025