WADAKOHSAN CORPORATION (8931) AI Stock Analysis

• Market Cap: ¥18.80B
• Dividend Yield: 4.71%
• Average Volume (3M): 21.75K
• Price to Earnings (P/E): 3.1
• 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: ¥1,966.00 ▲(14.70% 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

Improved Profitability

Sustained improvements in gross and net margins plus healthy EBIT/EBITDA margins indicate better cost control and pricing power. Durable margin expansion supports reinvestment, strengthens coverage for interest and dividends, and enhances resilience across business cycles over the next 2-6 months.

Consistent Revenue Growth

Mid-single-digit revenue growth shows the company is expanding top-line activity in its portfolio. Steady sales trends help sustain occupancy and cash inflows, enabling margin leverage and providing a foundation to service debt and fund maintenance capex over the medium term.

Growing Equity Base and Rising ROE

A growing equity base combined with rising ROE signals efficient use of shareholder capital and improved profitability retention. This builds financial buffers, improves creditworthiness for refinancing, and supports longer-term strategic investments without immediate dilution.

Negative Factors

High Leverage

A relatively high debt-to-equity ratio increases sensitivity to interest-rate moves and refinancing cycles. Elevated leverage can constrain strategic flexibility, raise fixed costs, and amplify downside in adverse property market or cash-flow scenarios over the coming months.

Weak and Volatile Cash Generation

Negative operating cash flow and poor FCF conversion reduce internal funding for capex, debt service, and distributions, increasing reliance on external financing. This weak cash conversion undermines resilience and elevates refinancing and liquidity risk over the medium term.

Revenue and Earnings Volatility

Notable swings in revenue and net income complicate forecasting and budgeting, making capital allocation and debt servicing less predictable. Persistent volatility can raise risk premia with lenders and investors and hinder strategic initiatives that require stable cash generation.

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

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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: Negative
• Last Price: 1714.00
• 50DMA: Negative
• 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:8931, the sentiment is Negative. The current price of 1714 is below the 20-day moving average (MA) of 1727.36, below the 50-day MA of 1723.69, and above the 200-day MA of 1592.46, indicating a neutral trend. The MACD of -4.77 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 35.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥18.80B	3.07	―	4.71%	10.42%	48.21%
3242	75 Outperform	¥20.21B	20.76	―	3.69%	84.40%	142.34%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8927	62 Neutral	¥13.62B	4.47	―	2.85%	20.54%	8.92%
8918	57 Neutral	¥15.38B	114.89	―	1.11%	―	―
3475	54 Neutral	¥45.30B	-26.35	―	3.75%	-8.66%	-53.57%
3246	50 Neutral	¥6.60B	9.72	―	3.17%	5.99%	-35.12%

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.