W TOKYO Inc. (9159) AI Stock Analysis

• Market Cap: ¥4.58B
• Dividend Yield: N/A
• Average Volume (3M): 10.22K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.40
• Revenue Growth: 2.38%
• EPS Growth: -50.61%
• Country: JP
• Employees: 52
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 18.69
• Shares Outstanding: 2,754,400
• 10 Day Avg. Volume: 10,940
• 30 Day Avg. Volume: 10,223
• PEG Ratio: 0.20
• Price to Book (P/B): 13.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.64
• 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

• Rating: 68 Neutral
• Price Target: ¥1,815.00 ▲(6.70%Upside)

W TOKYO Inc. scores a 68 due to strong financial performance driven by revenue growth and improved balance sheet strength. However, challenges in profitability and cash flow, along with a relatively high valuation, weigh down the score. Technical indicators suggest a mixed outlook, reflecting both short-term potential and longer-term caution.

W TOKYO Inc. Business Overview & Revenue Model

Company Description

W TOKYO Inc. (9159) is a Japanese company primarily engaged in the production and management of high-profile fashion events. The company is best known for organizing the iconic Tokyo Girls Collection, which showcases the latest trends in Japanese street fashion. W TOKYO Inc. operates in the fashion and entertainment sectors, providing a platform for emerging and established designers, models, and brands to reach a broad audience.

How the Company Makes Money

W TOKYO Inc. generates revenue through multiple streams. The primary source of income is from event management fees and sponsorships associated with its fashion shows, particularly the Tokyo Girls Collection. Brands and designers pay to have their products featured during these events, gaining exposure to a large audience. Additionally, the company earns from ticket sales to these events, both in-person and through digital streaming platforms. W TOKYO Inc. also benefits from partnerships and collaborations with fashion and lifestyle brands, leveraging its influence in the industry to drive advertising and promotional activities. Moreover, the company may engage in merchandising and licensing agreements, capitalizing on the popularity of its brand and events.

W TOKYO Inc. Financial Statement Overview

Summary

W TOKYO Inc. displays a strong financial performance with robust revenue growth and improving balance sheet strength, particularly in reducing debt levels and enhancing equity. However, the decline in net profit margins and free cash flow poses potential challenges. Continued focus on managing operating expenses and improving cash generation will be crucial to sustain growth and profitability.

Income Statement

W TOKYO Inc. has shown strong revenue growth over the years, increasing from JPY 2.06 billion in 2022 to JPY 3.96 billion in 2024, with a recent growth rate of 9.44%. The Gross Profit Margin remains robust, though slightly decreasing, from 43.67% in 2023 to 38.32% in 2024. Net Profit Margin decreased from 11.24% to 8.28%, indicating some pressure on profitability. However, EBIT and EBITDA margins remain healthy, showing the company's operational efficiency.

Balance Sheet

The company maintains a strong equity position with a significant increase in Stockholders' Equity from JPY 521 million in 2022 to JPY 1.65 billion in 2024. The Debt-to-Equity ratio improved significantly from 2.74 in 2022 to 0.54 in 2024, suggesting reduced financial leverage and risk. Return on Equity (ROE) remains solid, though slightly lower than previous years. The equity ratio has improved, indicating a stronger capital structure.

Cash Flow

W TOKYO Inc. experienced a decline in Free Cash Flow from JPY 850.98 million in 2023 to JPY 168.12 million in 2024, showing a significant decrease of 80.24%. The Operating Cash Flow to Net Income ratio is positive, but the drop in free cash flow suggests challenges in cash generation despite profitable operations. The company’s investment in capital expenditures indicates growth initiatives.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	3.89B	3.96B	3.62B	2.07B	1.99B
Gross Profit	1.34B	1.52B	1.59B	911.84M	525.95M
EBITDA	497.36M	691.45M	813.25M	272.90M	-45.31M
Net Income	222.93M	327.57M	406.35M	128.95M	-218.99M
Balance Sheet
Total Assets	2.91B	3.10B	3.12B	2.50B	2.69B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.93B	1.97B	1.00B	1.17B
Total Debt	822.00M	900.60M	1.15B	1.43B	1.80B
Total Liabilities	1.28B	1.45B	1.85B	1.98B	2.31B
Stockholders Equity	1.63B	1.65B	1.27B	521.14M	380.34M
Cash Flow
Free Cash Flow	0.00	168.12M	850.98M	186.40M	67.36M
Operating Cash Flow	0.00	187.07M	864.56M	281.60M	71.81M
Investing Cash Flow	0.00	-27.44M	46.42M	-95.20M	21.20M
Financing Cash Flow	0.00	-200.31M	55.92M	-356.31M	244.20M

W TOKYO Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1701.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9159, the sentiment is Negative. The current price of 1701 is above the 20-day moving average (MA) of 1648.95, above the 50-day MA of 1672.48, and below the 200-day MA of 1844.77, indicating a neutral trend. The MACD of 8.25 indicates Negative momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9159.

W TOKYO Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2411	80 Outperform	¥4.64B	13.61		5.05%	3.50%	190.77%
6038	69 Neutral	¥4.40B	18.31		2.45%	2.16%	1.40%
9159	68 Neutral	¥4.58B	29.22		―	2.38%	-50.61%
Sector *	61 Neutral	$41.24B	-0.79	-14.21%	3.80%	2.39%	-73.52%
7044	54 Neutral	¥3.77B	40.70		―	59.48%	―
7078	52 Neutral	¥5.03B	12.72		―	-8.62%	-440.78%
7063	41 Neutral	¥3.75B	―		―	-88.51%	-29.38%