WirelessGate, Inc. (9419) AI Stock Analysis

• Market Cap: ¥2.91B
• Dividend Yield: N/A
• Average Volume (3M): 17.75K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.43
• Revenue Growth: -3.76%
• EPS Growth: -67.98%
• Country: JP
• Employees: 25
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 5.39
• Shares Outstanding: 10,938,574
• 10 Day Avg. Volume: 11,300
• 30 Day Avg. Volume: 17,753
• PEG Ratio: 0.49
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 10.45
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥290.00 ▲(13.28% Upside)

WirelessGate, Inc.'s overall stock score is driven by solid financial performance, with effective cost and leverage management leading to improved profitability. The technical analysis indicates a neutral to slightly bearish short-term trend, while the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Profit Margin Improvement

The improvement in profit margins indicates effective cost management and operational efficiency, enhancing long-term profitability.

Cash Flow Management

Robust cash flow management supports sustainable operations and provides flexibility for strategic investments and debt management.

Leverage Management

Effective leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests challenges in market expansion and customer acquisition, potentially impacting long-term growth prospects.

Decreasing Asset Base

A shrinking asset base can constrain the company's ability to scale operations and invest in new opportunities, affecting future growth.

Declining EPS Growth

A significant drop in EPS growth reflects challenges in profitability and may reduce investor confidence, impacting long-term valuation.

WirelessGate, Inc. Business Overview & Revenue Model

Company Description

WirelessGate, Inc. provides wireless broadband and related services. The company offers mobile internet, PC and smartphone insurance, and Wi-Fi rental services, as well as peripheral services. It is also involved in the remote life support and local DX platform businesses. The company was incorporated in 2004 and is based in Tokyo, Japan.

How the Company Makes Money

WirelessGate generates revenue primarily through subscription-based mobile data services, where customers pay a monthly fee for access to its wireless networks. Additional revenue streams include selling wireless infrastructure solutions to businesses, which encompasses installation, maintenance, and support services for network systems. Partnerships with telecom carriers and technology providers also enhance its earnings by allowing WirelessGate to bundle services and expand its market reach. Moreover, the company may engage in licensing its technology and platform solutions, providing a supplementary source of income.

WirelessGate, Inc. Financial Statement Overview

Summary

WirelessGate, Inc. has shown a solid financial recovery with improving profit margins and cash flow management. The company has effectively managed its costs and leverage, leading to stronger profitability and financial stability. However, revenue growth remains a key area for improvement.

Income Statement

WirelessGate, Inc. demonstrated an improving trend in profitability margins, with a gross profit margin of 50.18% and a net profit margin of 3.35% in 2024. The revenue growth has been negative over recent years, but the company has effectively improved its cost structure, leading to better EBIT and EBITDA margins. These improvements indicate a positive trajectory towards profitability.

Balance Sheet

The company has a healthy equity position with an equity ratio of 43.96% in 2024, reflecting financial stability. The debt-to-equity ratio improved to 0.23, indicating manageable leverage. Return on equity was 21.57%, showing efficient use of equity to generate profits. However, the overall asset base has been decreasing, which may limit future growth.

Cash Flow

WirelessGate, Inc. exhibited strong free cash flow generation with a growth rate of 8.01% from the previous year. The operating cash flow to net income ratio stood at 0.81, suggesting efficient cash conversion. The free cash flow to net income ratio was 0.80, reinforcing the company's strong cash position. These metrics indicate robust cash flow management, although operating cash flow decreased from the prior year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.48B	8.46B	8.48B	8.53B	9.78B	10.75B
Gross Profit	4.01B	4.25B	4.01B	4.27B	3.66B	3.46B
EBITDA	237.78M	333.72M	237.78M	58.93M	-370.88M	-115.39M
Net Income	241.16M	283.93M	241.16M	26.22M	-388.54M	-139.19M
Balance Sheet
Total Assets	2.97B	2.99B	2.97B	2.94B	3.04B	3.75B
Cash, Cash Equivalents and Short-Term Investments	1.78B	1.83B	1.78B	1.45B	1.36B	1.15B
Total Debt	500.00M	300.00M	500.00M	591.63M	691.64M	1.18B
Total Liabilities	1.95B	1.68B	1.95B	2.02B	2.14B	2.95B
Stockholders Equity	1.02B	1.32B	1.02B	924.06M	892.65M	802.33M
Cash Flow
Free Cash Flow	28.55M	227.78M	421.15M	183.98M	266.78M	148.66M
Operating Cash Flow	28.55M	229.07M	424.23M	183.98M	297.31M	239.63M
Investing Cash Flow	0.00	21.63M	-3.08M	4.65M	234.64M	-107.40M
Financing Cash Flow	0.00	-200.00M	-91.63M	-100.01M	657.43M	-270.85M

WirelessGate, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 256.00
• 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:9419, the sentiment is Negative. The current price of 256 is below the 20-day moving average (MA) of 259.30, below the 50-day MA of 268.86, and above the 200-day MA of 255.40, indicating a neutral trend. The MACD of -3.45 indicates Negative momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9419.

WirelessGate, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3842	70 Outperform	¥3.21B	11.58	―	0.98%	11.10%	16.84%
9445	69 Neutral	¥9.62B	10.46	―	3.85%	1.75%	24.87%
3776	66 Neutral	¥11.06B	26.24	―	1.15%	17.19%	-43.91%
4415	65 Neutral	¥6.60B	15.44	―	―	39.18%	27.87%
9419	63 Neutral	¥2.91B	16.73	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9421	45 Neutral	¥3.09B	58.84	―	―	4.84%	-54.50%