Wavelock Holdings Co., Ltd. (7940) AI Stock Analysis

• Market Cap: ¥5.88B
• Dividend Yield: 5%
• Average Volume (3M): 19.73K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.57
• Revenue Growth: 8.52%
• EPS Growth: 14.08%
• Country: JP
• Employees: 606
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 29.47
• Shares Outstanding: 11,120,538
• 10 Day Avg. Volume: 21,050
• 30 Day Avg. Volume: 19,733
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.61
• 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: ¥660.00
• Price Target Upside: 9.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥660.00 ▲(9.45%Upside)

Wavelock Holdings Co., Ltd. receives a solid overall stock score driven by its strong valuation metrics and favorable technical analysis. Despite some concerns regarding operational efficiency and cash flow, the company's financial stability and attractive dividend yield contribute positively to its investment appeal.

Wavelock Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Wavelock Holdings Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of plastic products. The company operates through various segments, including the Plastic Products segment, which focuses on the production of diverse plastic items used in multiple industries such as construction, automotive, and consumer goods. Wavelock Holdings is known for its commitment to innovation and quality in material solutions, providing essential components and finished products that cater to the evolving needs of its clients.

How the Company Makes Money

Wavelock Holdings Co., Ltd. generates revenue through the manufacturing and sale of plastic products. The company's key revenue streams include the production of plastic films, sheets, and molded items, which are supplied to industries ranging from construction and automotive to electronics and packaging. By leveraging its expertise in material technologies, Wavelock Holdings collaborates with industry partners to enhance product offerings and meet specific client requirements. The company may also engage in strategic partnerships and joint ventures to expand its market reach and capitalize on emerging opportunities in the plastic and material solutions sectors.

Wavelock Holdings Co., Ltd. Financial Statement Overview

Summary

Wavelock Holdings Co., Ltd. demonstrates a solid financial foundation with consistent revenue growth and improving profitability metrics. However, declining operating margins and cash conversion remain areas of concern. The balance sheet is stable with manageable debt levels, but operational efficiency and cash flow management require focus to enhance financial performance.

Income Statement

Wavelock Holdings Co., Ltd. has shown a positive revenue growth trend over recent years, with a notable increase from 2024 to 2025. Gross profit margin remains healthy, however, EBIT and EBITDA margins have been on a declining trend, indicating potential operational inefficiencies or increased costs. Net profit margin has improved slightly, reflecting effective cost management despite the declining operating margins.

Balance Sheet

The company's debt-to-equity ratio appears manageable, albeit with some increase in total debt. The equity ratio is stable, showing sound capital structure management. Return on equity has seen fluctuations, potentially indicating some variability in profitability. Overall, the balance sheet shows a stable financial position with room for improvement in leveraging equity more effectively.

Cash Flow

Free cash flow has improved significantly from a negative position in previous years to a positive free cash flow in 2025, indicating better cash management. Operating cash flow to net income ratio suggests that cash generation from operations is improving but still requires attention. The company's ability to convert earnings into cash remains a critical area to focus on.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.35B	25.57B	23.56B	22.58B	21.00B	29.25B
Gross Profit	5.59B	5.65B	5.39B	5.14B	4.88B	7.16B
EBITDA	950.83M	1.55B	1.51B	3.78B	1.50B	4.56B
Net Income	187.34M	520.80M	456.34M	2.32B	655.07M	2.39B
Balance Sheet
Total Assets	29.19B	29.19B	28.46B	26.27B	24.26B	26.09B
Cash, Cash Equivalents and Short-Term Investments	3.50B	3.22B	2.58B	2.45B	1.96B	4.88B
Total Debt	5.50B	5.44B	5.34B	3.49B	4.15B	5.03B
Total Liabilities	12.99B	12.48B	12.35B	10.43B	10.49B	11.80B
Stockholders Equity	16.12B	16.62B	16.05B	15.78B	13.72B	14.26B
Cash Flow
Free Cash Flow	0.00	907.10M	-1.03B	-1.11B	-768.82M	1.23B
Operating Cash Flow	0.00	2.23B	139.55M	129.30M	78.10M	2.11B
Investing Cash Flow	0.00	-1.37B	-1.56B	1.40B	-850.08M	1.29B
Financing Cash Flow	0.00	-172.90M	1.55B	-1.01B	-2.18B	-884.74M

Wavelock Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 603.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7940, the sentiment is Positive. The current price of 603 is above the 20-day moving average (MA) of 592.90, above the 50-day MA of 583.46, and above the 200-day MA of 599.64, indicating a bullish trend. The MACD of 5.17 indicates Negative momentum. The RSI at 63.81 is Neutral, neither overbought nor oversold. The STOCH value of 89.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7940.

Wavelock Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.55B	15.56		2.53%	1.87%	-4.33%
7940	75 Outperform	¥5.88B	9.72		5.00%	8.52%	14.08%
4624	71 Outperform	¥5.02B	11.56		1.47%	2.02%	5.55%
4623	66 Neutral	¥6.45B	8.93		3.52%	0.26%	82.94%
4616	60 Neutral	¥1.62B	13.35		1.84%	-5.33%	-40.81%
4615	47 Neutral	¥4.39B	20.50		―	9.52%	88.23%
Sector *	44 Neutral	AU$1.43B	-6.04	-40.74%	3.91%	-3.45%	-41.77%