WILLPLUS Holdings Corp. (3538) AI Stock Analysis

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WILLPLUS Holdings Corp.

(TSE/TYO:3538)

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Rating:53Neutral

Price Target:JPY 1,039.00▲(9.02% Upside)

Action:downgraded

Date:08/19/26

The score is held back primarily by weakening margins, rising leverage, and inconsistent/negative free cash flow, which increase financial risk despite improving revenue growth. Technicals are supportive but overbought, while valuation is a clear positive due to the low P/E and strong dividend yield.

Positive Factors

Revenue growth re-acceleratedThe return to stronger sales growth indicates improving demand or execution across the dealership network. Sustained top-line expansion can support fixed-cost absorption and create a foundation for recovery if margins stabilize.

Negative Factors

Material margin compressionProfitability has weakened despite renewed revenue growth, suggesting higher costs, pricing pressure, or less favorable mix. Thin margins leave limited protection against vehicle-market volatility and could constrain reinvestment and earnings recovery.

WILLPLUS Holdings Corp. (3538) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.77B
Dividend Yield: 4.83%
Average Volume (3M): 11.96K
Price to Earnings (P/E): 7.9
Beta (1Y): 0.48
Revenue Growth: 9.28%
EPS Growth: -23.02%
Country: Japan
Employees: 930
Sector: General
Sector Strength: 55
Industry: Auto - Dealerships

WILLPLUS Holdings Corp. Business Overview & Revenue Model

Company Description

WILLPLUS Holdings Corporation, based in Tokyo, Japan, is a company primarily involved in the import and sale of both new and pre-owned automobiles within the Japanese market. The firm additionally provides a suite of complementary services, including...

How the Company Makes Money

WILLPLUS Holdings makes money mainly through its dealership operations. Key revenue streams generally include (1) new vehicle sales: revenue from selling new cars as an authorized dealer for imported brands, with earnings influenced by sales volume,...

WILLPLUS Holdings Corp. Financial Statement Overview

Summary

Revenue growth improved in 2026 (+7.3%), but profitability weakened materially (gross margin down to 13.6%, net margin to 1.1%, EBIT margin to 1.5%). Leverage rose sharply (debt-to-equity 1.84), and cash generation has been inconsistent with recent negative free cash flow, increasing funding risk in a cyclical business.

Income Statement

52Neutral

Balance Sheet

43Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	96.84B	96.84B	88.61B	47.75B	44.12B	39.70B
Gross Profit	13.14B	13.14B	12.43B	9.36B	8.62B	8.44B
EBITDA	3.69B	3.67B	4.04B	3.31B	3.29B	3.58B
Net Income	1.11B	1.11B	1.44B	1.12B	1.30B	1.55B
Balance Sheet
Total Assets	43.94B	43.94B	37.41B	32.33B	23.75B	18.73B
Cash, Cash Equivalents and Short-Term Investments	10.48B	10.48B	8.25B	7.51B	4.29B	5.54B
Total Debt	21.55B	21.55B	16.56B	13.21B	9.78B	4.62B
Total Liabilities	31.04B	31.04B	25.21B	21.26B	14.00B	9.90B
Stockholders Equity	11.73B	11.73B	10.84B	9.82B	9.75B	8.83B
Cash Flow
Free Cash Flow	0	-894.74M	-1.62B	2.06B	-2.62B	1.72B
Operating Cash Flow	0	773.89M	-1.30B	2.51B	-2.27B	1.91B
Investing Cash Flow	0	-3.02B	-545.04M	-3.86B	-412.04M	-218.00M
Financing Cash Flow	0	4.45B	2.58B	4.57B	1.43B	469.41M

WILLPLUS Holdings Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3538 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4732	82Outperform	JPY 854.16B	19.50	21.92%	3.15%	14.05%	12.23%
JP:7593	69Neutral	JPY 58.68B	10.36	―	4.86%	13.60%	12.08%
JP:3186	61Neutral	JPY 211.21B	11.53	―	1.64%	23.54%	111.44%
JP:7599	56Neutral	JPY 95.89B	8.20	―	3.68%	16.85%	-1.43%
JP:7602	56Neutral	JPY 3.14B	56.47	―	0.69%	4.30%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3538	53Neutral	JPY 9.52B	7.92	―	4.83%	9.28%	-23.02%

* General Sector Average

Performance Comparison

JP:3538 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3538	WILLPLUS Holdings Corp.	953.00	-22.02	-2.26%
JP:4732	USS Co	1833.00	171.85	10.35%
JP:3186	Nextage Co., Ltd.	2740.00	102.65	3.89%
JP:7593	VT Holdings Co., Ltd.	494.00	21.70	4.59%
JP:7599	IDOM Inc.	971.00	-204.00	-17.36%
JP:7602	Carchs Holdings Co., Ltd.	145.00	11.91	8.95%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026

WILLPLUS Holdings Corp. AI Stock Analysis