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WingArc1st Inc.
(4432)
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Rating:83Outperform
Price Target:
¥4,072.00
▲(33.73% Upside)
Action:Reiterated
Date:10/15/26
The score is driven primarily by strong financial performance—excellent margins, improving leverage, and solid free-cash-flow conversion—supported by constructive technicals with the stock trading above key moving averages. Valuation is also supportive with a moderate P/E and a ~3% dividend yield, partially offset by signs of slowing/less consistent recent growth and slightly softer free-cash-flow momentum.
Positive Factors
High Profitability
WingArc1st’s high gross, operating, EBITDA, and net margins indicate a scalable software model with substantial earnings retained from each unit of revenue. This profitability should support product investment, customer support, and resilience while preserving attractive earnings power over the next several quarters.
Negative Factors
Growth Volatility
Although the longer-term revenue trajectory remains positive, the sharp FY2026 deceleration shows that growth is not consistently linear. If slower expansion persists, operating leverage and the pace of customer and product scaling could weaken, making future earnings growth less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
WingArc1st’s high gross, operating, EBITDA, and net margins indicate a scalable software model with substantial earnings retained from each unit of revenue. This profitability should support product investment, customer support, and resilience while preserving attractive earnings power over the next several quarters.
Read all positive factors
WingArc1st Inc. (4432) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥132.21B
Dividend Yield2.77%
Average Volume (3M)103.76K
Price to Earnings (P/E)18.0
Beta (1Y)0.59
Revenue Growth14.67%
EPS Growth39.11%
CountryJP
Employees1,126
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)212.00
Shares Outstanding35,108,670
10 Day Avg. Volume147,470
30 Day Avg. Volume103,756
Financial Highlights & Ratios
PEG Ratio1.61
Price to Book (P/B)2.02
Price to Sales (P/S)3.07
P/FCF Ratio13.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)219.83
Revenue Forecast (FY)¥34.40B
WingArc1st Inc. Business Overview & Revenue Model
Company Description
Established in 1993 and headquartered in Tokyo, Japan, WingArc1st Inc. delivers a comprehensive suite of software and services aimed at empowering organizations to effectively leverage their data. The company's operational footprint extends across...
How the Company Makes Money
WingArc1st primarily generates revenue by licensing and supporting enterprise software used for data analytics/reporting and document/form management. Key revenue streams typically include: (1) software license revenue (or subscription fees where ...
WingArc1st Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.73B | 30.95B | 28.71B | 25.75B | 22.35B | 19.83B |
| Gross Profit | 27.78B | 27.53B | 24.03B | 21.64B | 18.46B | 16.43B |
| EBITDA | 11.79B | 10.73B | 12.51B | 11.24B | 9.26B | 8.93B |
| Net Income | 7.36B | 6.50B | 5.93B | 5.41B | 4.40B | 4.35B |
Balance Sheet | ||||||
| Total Assets | 76.75B | 73.49B | 69.45B | 66.78B | 63.38B | 59.70B |
| Cash, Cash Equivalents and Short-Term Investments | 16.61B | 13.34B | 14.72B | 12.99B | 11.18B | 9.02B |
| Total Debt | 6.41B | 7.12B | 8.56B | 9.94B | 12.21B | 14.19B |
| Total Liabilities | 27.47B | 26.46B | 27.60B | 27.68B | 28.80B | 29.08B |
| Stockholders Equity | 49.26B | 47.00B | 41.79B | 39.07B | 34.52B | 30.54B |
Cash Flow | ||||||
| Free Cash Flow | 8.88B | 7.02B | 7.81B | 7.35B | 6.78B | 6.34B |
| Operating Cash Flow | 9.15B | 7.20B | 8.20B | 7.84B | 6.87B | 6.44B |
| Investing Cash Flow | -648.87M | -2.90B | -1.60B | -1.60B | -1.00B | -532.55M |
| Financing Cash Flow | -5.44B | -5.79B | -4.86B | -4.46B | -3.75B | -2.08B |
WingArc1st Inc. Technical Analysis
Positive
3045.00
Price Trends
3374.23
Positive
2980.60
Positive
2896.10
Positive
Market Momentum
144.43
Negative
74.00
Negative
85.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4432, the sentiment is Positive. The current price of 3045 is below the 20-day moving average (MA) of 3528.00, below the 50-day MA of 3374.23, and above the 200-day MA of 2896.10, indicating a bullish trend. The MACD of 144.43 indicates Negative momentum. The RSI at 74.00 is Negative, neither overbought nor oversold. The STOCH value of 85.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4432.
WingArc1st Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥144.52B | 19.02 | ― | 1.27% | 20.38% | 45.30% | |
83 Outperform | ¥132.21B | 18.02 | ― | 2.77% | 14.67% | 39.11% | |
82 Outperform | ¥82.60B | 17.20 | 30.58% | 3.41% | 15.67% | 23.19% | |
66 Neutral | ¥70.61B | 41.85 | ― | 0.00% | 28.10% | ― | |
64 Neutral | ¥73.88B | 8.25 | ― | ― | 1178.31% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥249.31B | 228.57 | ― | ― | 27.57% | -21.74% |
* Technology Sector Average
JP:4432
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WingArc1st Inc. Corporate Events
WingArc1st Delivers Strong First-Half Earnings and Confirms Double-Digit Growth Outlook
Oct 14, 2026
WingArc1st reported a solid first half for the six months ended August 31, 2026, with revenue rising 12.1% year-on-year to ¥16,498 million and operating profit jumping 25.8% to ¥5,168 million. Profit attributable to equity holders surged...
WingArc1st Reports Progress on Share Buyback Program
Oct 1, 2026
WingArc1st Inc. has disclosed the progress of its ongoing share repurchase program authorized by the Board in July 2026 under Article 459 of the Companies Act. The company is buying back common stock as treasury shares through market purchases on ...
WingArc1st Reports No Share Buybacks Yet Under Authorized Repurchase Program
Sep 1, 2026
WingArc1st Inc. reported the status of its ongoing share repurchase program authorized by its board in mid-July 2026 under Japan’s Companies Act. During the period from August 1 to August 31, 2026, the company did not repurchase any of its c...
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.