WADAKOHSAN CORPORATION (8931) AI Stock Analysis

• Market Cap: ¥19.68B
• Dividend Yield: 4.71%
• Average Volume (3M): 21.75K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.48
• Revenue Growth: 10.42%
• EPS Growth: 48.21%
• Country: JP
• Employees: 122
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 133.51
• Shares Outstanding: 11,100,000
• 10 Day Avg. Volume: 20,550
• 30 Day Avg. Volume: 21,750
• PEG Ratio: 0.25
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -3.80
• 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: 78 Outperform
• Price Target: ¥2,024.00 ▲(18.09% Upside)
• Action: Reiterated Date: 07/26/25
• Date: Action: Reiterated 07/26/25

WADAKOHSAN CORPORATION scores highly due to its strong valuation metrics and positive technical indicators, despite some concerns over financial leverage and cash flow fluctuations. The real estate industry's cyclical nature and the company's reliance on debt pose risks, but the low P/E ratio and high dividend yield offer a compelling investment case.

Positive Factors

Margin Improvement

Sustained improvement in gross, net, EBIT and EBITDA margins indicates stronger pricing power and cost control. Over a 2-6 month horizon this supports durable earnings resilience, higher internal cash generation potential, and greater ability to fund operations or pay down debt without relying solely on external markets.

Revenue and EPS Growth

Consistent top-line growth (~9%) with stronger EPS growth (~13%) signals operational leverage and improving unit economics. Durable sales and earnings expansion over several quarters suggests market demand and execution that can sustain reinvestment, support margins, and improve long-term profitability.

Growing Equity Base & ROE

An expanding equity base alongside rising ROE implies the company is generating returns efficiently on shareholder capital. This improves financial flexibility, supports longer-term investment and reduces some refinancing pressure, bolstering structural resilience versus peers reliant solely on debt financing.

Negative Factors

High Leverage

A relatively high debt-to-equity and dependency on debt financing creates persistent refinancing and interest-rate exposure. Over months this structural leverage can amplify downside in slower markets, constrain capital allocation choices, and increase vulnerability if borrowing costs rise or credit conditions tighten.

Weak Cash Conversion

Negative operating cash flow and low conversion of net income into free cash flow indicate difficulty turning profits into liquid resources. This structural cash weakness forces reliance on external financing for capex, debt service, or dividends, reducing long-term financial flexibility and increasing liquidity risk.

Cyclical Industry Exposure

Operating in the cyclical real estate sector exposes revenues and asset values to macro and rate cycles. Combined with leverage, this structural industry sensitivity can cause sustained volatility in cash flows and asset valuations across several quarters, challenging steady long-term performance and planning.

WADAKOHSAN CORPORATION Business Overview & Revenue Model

Company Description

Wadakohsan Corporation develops and sells condominiums, detached houses, and residential land in Japan. It also rents, leases, and manages condominiums, stores, and parking lots. The company was founded in 1899 and is headquartered in Kobe, Japan.

How the Company Makes Money

WADAKOHSAN CORPORATION generates revenue through multiple streams, primarily by selling construction materials to contractors and builders. The company profits from the production and sale of its core products, including concrete and aggregates, which are essential for construction projects. Additionally, WADAKOHSAN provides engineering and consulting services, which contribute to its revenue. Significant partnerships with construction firms and government contracts enhance its earnings potential, allowing it to secure large-scale projects. The company's focus on sustainable practices and environmental solutions further attracts clients seeking eco-friendly options, creating additional revenue opportunities.

WADAKOHSAN CORPORATION Financial Statement Overview

Summary

WADAKOHSAN CORPORATION demonstrates strong profitability with improved margins and a growing equity base. However, there are concerns regarding leverage, with a relatively high debt-to-equity ratio and challenges in cash flow consistency.

Income Statement

WADAKOHSAN CORPORATION shows a strong performance in profitability metrics. The gross profit margin and net profit margin have improved significantly over the years. The revenue growth rate is positive, indicating an upward trajectory in sales. EBIT and EBITDA margins are also healthy, reflecting efficient cost management. However, the fluctuations in revenue and net income across years suggest some potential risks in maintaining consistent growth.

Balance Sheet

The company's balance sheet reflects a moderate level of financial stability. Although the debt-to-equity ratio is relatively high, indicative of leverage risk, the company has managed to maintain a growing stockholder equity base. The return on equity has been increasing, suggesting efficient use of equity to generate profits. However, the equity ratio indicates a dependency on debt financing, which could pose risks if interest rates rise.

Cash Flow

WADAKOHSAN's cash flow statement shows challenges in generating consistent free cash flow, with significant fluctuations over the years. The operating cash flow has been negative in recent periods, which is a concern for sustainability. The free cash flow to net income ratio is low, pointing towards potential issues in converting profits into cash. Despite a positive financing cash flow, the reliance on external financing could impact future flexibility.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	42.16B	40.13B	38.83B	42.71B	41.79B	39.81B
Gross Profit	10.21B	9.73B	8.49B	8.39B	7.99B	6.69B
EBITDA	6.61B	6.02B	5.22B	5.09B	4.62B	3.45B
Net Income	3.53B	3.12B	2.64B	2.38B	2.34B	1.27B
Balance Sheet
Total Assets	109.94B	110.66B	101.23B	86.14B	98.30B	92.34B
Cash, Cash Equivalents and Short-Term Investments	16.80B	17.20B	17.35B	11.76B	17.01B	11.84B
Total Debt	60.37B	57.37B	52.60B	44.54B	50.68B	53.20B
Total Liabilities	75.83B	77.73B	70.57B	57.56B	71.65B	67.45B
Stockholders Equity	34.11B	32.93B	30.66B	28.58B	26.66B	24.88B
Cash Flow
Free Cash Flow	0.00	-3.98B	-1.92B	881.56M	7.53B	2.86B
Operating Cash Flow	0.00	-1.94B	-1.18B	2.15B	8.22B	3.72B
Investing Cash Flow	0.00	-2.09B	-458.49M	-1.07B	190.59M	-1.05M
Financing Cash Flow	0.00	3.90B	7.47B	-6.64B	-3.12B	-587.37M

WADAKOHSAN CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1714.00
• 50DMA: Positive
• 100DMA: Positive
• 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:8931, the sentiment is Positive. The current price of 1714 is below the 20-day moving average (MA) of 1735.66, above the 50-day MA of 1709.15, and above the 200-day MA of 1565.94, indicating a bullish trend. The MACD of 10.95 indicates Negative momentum. The RSI at 68.16 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8931.

WADAKOHSAN CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥19.68B	5.68	―	4.71%	10.42%	48.21%
3242	75 Outperform	¥21.72B	5.17	―	3.69%	84.40%	142.34%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8927	62 Neutral	¥14.51B	8.64	―	2.85%	20.54%	8.92%
1431	57 Neutral	¥15.64B	68.75	―	0.94%	-6.81%	-25.33%
8918	57 Neutral	¥15.38B	719.42	―	1.11%	―	―

WADAKOHSAN CORPORATION Corporate Events

WADAKOHSAN Posts Higher Nine-Month Profit, Keeps Full-Year Forecast and Dividend Plan Unchanged

WADAKOHSAN reported solid non-consolidated results for the nine months ended November 30, 2025, with net sales up 11.4% year on year to ¥37.59 billion and profit rising 10.5% to ¥3.11 billion, reflecting continued strength in its real estate operations and improved earnings per share of ¥283.89. The company’s financial position also improved, with total assets increasing to ¥114.61 billion and equity-to-asset ratio edging up to 30.7%, while it maintained its full-year forecast calling for modest sales growth but lower profits versus the prior year and confirmed an unchanged annual dividend plan of ¥70 per share, signaling confidence in shareholder returns despite an expected earnings slowdown.

The most recent analyst rating on (JP:8931) stock is a Buy with a Yen1758.00 price target. To see the full list of analyst forecasts on WADAKOHSAN CORPORATION stock, see the JP:8931 Stock Forecast page.