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

• Market Cap: ¥10.38B
• Dividend Yield: 1.19%
• Average Volume (3M): 59.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 4.66%
• EPS Growth: 4.90%
• Country: JP
• Employees: 606
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -3.42
• Shares Outstanding: 11,120,538
• 10 Day Avg. Volume: 45,840
• 30 Day Avg. Volume: 59,200
• PEG Ratio: 0.68
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 5.46
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,169.00 ▼(-10.56% Downside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

Wavelock Holdings Co., Ltd. scores well due to strong technical indicators and a solid financial foundation, despite some concerns over valuation and cash conversion. The stock's bullish momentum is a significant positive, although caution is advised due to potential overvaluation and overbought conditions.

Positive Factors

Improving free cash flow

The shift to positive free cash flow in 2025 indicates the company is converting operations into cash more effectively. Sustained FCF supports capex, deleveraging, and strategic reinvestment, reducing financing dependence and improving long-term financial flexibility.

Negative Factors

Declining operating margins

Persistent declines in operating margins suggest rising input costs, pricing pressure, or inefficiencies that can erode profitability even if revenue stabilizes. Sustained margin compression would impair cash generation and limit ability to fund growth or returns over time.

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

Company Description

Wavelock Holdings Co., Ltd., through its subsidiaries, provides interior, material, and technology solutions in Japan and internationally. The company manufactures and sells plastic sheets/films, synthetic fiber net products, other processed produ...

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Wavelock Holdings Co., Ltd., through its subsidiaries, provides interior, material, and technology solutions in Japan and internationally. The company manufactures and sells plastic sheets/films, synthetic fiber net products, other processed produ...

How the Company Makes Money

Wavelock Holdings makes money primarily through the sale of manufactured plastic/resin-based products and processed materials to business customers. Revenue is generated by (1) product sales of resin sheets/films and other plastic materials, (2) s...

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Wavelock Holdings makes money primarily through the sale of manufactured plastic/resin-based products and processed materials to business customers. Revenue is generated by (1) product sales of resin sheets/films and other plastic materials, (2) s...

Wavelock Holdings Co., Ltd. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.16B	25.57B	23.56B	22.58B	21.00B	29.25B
Gross Profit	5.97B	5.65B	5.39B	5.14B	4.88B	7.16B
EBITDA	1.57B	1.21B	1.19B	1.02B	1.22B	2.53B
Net Income	576.34M	520.80M	456.34M	2.32B	655.07M	2.39B
Balance Sheet
Total Assets	29.36B	29.19B	28.46B	26.27B	24.26B	26.09B
Cash, Cash Equivalents and Short-Term Investments	3.17B	3.22B	2.58B	2.45B	1.96B	4.88B
Total Debt	5.36B	5.44B	5.34B	3.49B	4.15B	5.03B
Total Liabilities	12.55B	12.48B	12.35B	10.43B	10.49B	11.80B
Stockholders Equity	16.72B	16.62B	16.05B	15.78B	13.72B	14.26B
Cash Flow
Free Cash Flow	0.00	907.10M	-992.75M	-1.06B	-700.02M	1.29B
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: Negative
• Last Price: 1307.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7940, the sentiment is Negative. The current price of 1307 is above the 20-day moving average (MA) of 1060.95, above the 50-day MA of 1184.18, and above the 200-day MA of 950.01, indicating a neutral trend. The MACD of -33.60 indicates Negative momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4629	83 Outperform	¥8.97B	8.04	―	2.51%	2.26%	51.04%
7940	72 Outperform	¥10.38B	-99.87	―	1.19%	4.66%	4.90%
4624	66 Neutral	¥5.80B	6.39	―	1.39%	2.67%	37.55%
4119	66 Neutral	¥8.41B	2.66	―	2.84%	37.67%	-117.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4623	61 Neutral	¥6.56B	7.93	―	3.50%	-8.27%	-3.23%
4615	44 Neutral	¥4.36B	-15.17	―	―	8.66%	-239.07%