WOOD FRIENDS CO Ltd (8886) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: N/A
• Average Volume (3M): 1.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -33.09%
• EPS Growth: -1.82%
• Country: JP
• Employees: 289
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): -1485.17
• Shares Outstanding: 1,480,000
• 10 Day Avg. Volume: 1,170
• 30 Day Avg. Volume: 1,743
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 6.00
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: -16.39
• 1Y Price Target: $1,686.00
• Price Target Upside: -1.69% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $1,686.00 ▼(-1.69% Downside)

The overall stock score reflects significant financial challenges faced by WOOD FRIENDS CO Ltd, primarily driven by declining revenue, negative earnings, and high leverage. Technical analysis indicates strong positive momentum, but overbought conditions pose potential risks. The negative P/E ratio further underscores valuation concerns, making the stock less attractive despite improved cash flow management.

WOOD FRIENDS CO Ltd Business Overview & Revenue Model

Company Description

WOOD FRIENDS CO Ltd (8886) is a Japanese company primarily engaged in the real estate sector. It specializes in the development, sale, and management of residential properties, with a focus on creating sustainable and environmentally friendly housing solutions. The company is known for its commitment to quality and its innovative approach to urban development, catering to a diverse clientele seeking modern living spaces.

How the Company Makes Money

WOOD FRIENDS CO Ltd generates revenue through several key streams. The primary source of income is the sale of residential properties, including newly developed homes and condominiums. Additionally, the company earns money through property management services, which include maintaining and overseeing residential complexes. Significant partnerships with construction firms, architects, and designers also contribute to its earnings by ensuring high-quality development projects that attract buyers. The company's focus on sustainable and eco-friendly housing solutions adds value to its offerings, appealing to environmentally conscious consumers and enhancing its market position.

WOOD FRIENDS CO Ltd Financial Statement Overview

Summary

WOOD FRIENDS CO Ltd is experiencing financial instability with declining revenue, negative net income, and high leverage. The income statement reveals a persistent struggle with profitability and operational efficiency, while the balance sheet indicates significant financial risk due to high debt levels. Although cash flow management has improved, with positive free cash flow, sustainability is questionable given historical volatility.

Income Statement

WOOD FRIENDS CO Ltd has faced significant challenges in maintaining consistent revenue and profitability. Gross profit margin has steadily declined from 11.23% in 2020 to 5.54% in 2024. Net income has been negative in recent years, with a net profit margin of -7.12% in 2024, indicating persistent losses. The revenue growth rate has also been volatile, with a notable drop of 24.06% from 2023 to 2024, highlighting instability in income generation and operational efficiency.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio of 3.27 in 2024, which reflects significant financial risk. Stockholders' equity has been decreasing, impacting the equity ratio, which stands at 18.74% in 2024, indicating a heavily leveraged structure. Return on equity has been negative in the latest period due to net losses, signaling poor returns for shareholders.

Cash Flow

Despite challenges, cash flow management appears to be a relative strength. The company reported a substantial positive free cash flow in 2024, reversing the negative trend from previous years. Operating cash flow to net income ratio is strong at -6.47 in 2024, indicating robust cash generation relative to net losses. However, the sustainability of these cash flows remains a concern given the historical volatility.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	33.22B	43.75B	42.30B	37.47B	37.62B
Gross Profit	1.84B	4.76B	5.63B	4.93B	4.23B
EBITDA	-1.07B	1.17B	2.11B	1.70B	1.14B
Net Income	-2.37B	-230.67M	937.77M	546.15M	119.55M
Balance Sheet
Total Assets	23.82B	38.22B	33.32B	25.74B	27.43B
Cash, Cash Equivalents and Short-Term Investments	3.09B	3.26B	4.69B	4.54B	3.17B
Total Debt	14.60B	25.98B	18.66B	14.05B	17.33B
Total Liabilities	18.79B	30.86B	25.54B	18.81B	21.04B
Stockholders Equity	4.46B	6.83B	7.30B	6.49B	5.98B
Cash Flow
Free Cash Flow	11.19B	-8.31B	-4.29B	4.72B	-360.80M
Operating Cash Flow	15.32B	-6.31B	-3.31B	5.30B	363.24M
Investing Cash Flow	-4.11B	-2.03B	-722.71M	-856.11M	-803.83M
Financing Cash Flow	-11.39B	6.91B	4.45B	-3.34B	-309.63M

WOOD FRIENDS CO Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1715.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8886, the sentiment is Neutral. The current price of 1715 is below the 20-day moving average (MA) of 1715.75, above the 50-day MA of 1714.48, and above the 200-day MA of 1276.69, indicating a neutral trend. The MACD of 6.06 indicates Positive momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8886.

WOOD FRIENDS CO Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3299	76 Outperform	¥47.33B	7.26		5.72%	11.83%	33.96%
Sector *	71 Outperform	¥233.73B	14.99	10.65%	3.49%	20.44%	26.56%
3293	67 Neutral	¥6.06B	8.56	4.41%	4.65%	0.61%	-16.11%
8887	63 Neutral	¥15.80B	27.94		0.90%	101.05%	<0.01%
2984	63 Neutral	¥5.99B	11.78		4.37%	-4.49%	-67.82%
8886	47 Neutral	$2.50B	―		―	-33.09%	-1.82%
7837	45 Neutral	¥1.69B	―		―	-9.49%	-126.08%