WingArc1st Inc. (4432) AI Stock Analysis

• Market Cap: ¥133.68B
• Dividend Yield: 2.68%
• Average Volume (3M): 48.87K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.62
• Revenue Growth: 11.47%
• EPS Growth: 8.73%
• Country: JP
• Employees: 881
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 35.52
• Shares Outstanding: 34,954,070
• 10 Day Avg. Volume: 49,340
• 30 Day Avg. Volume: 48,873
• PEG Ratio: 4.08
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.62
• 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: 76 Outperform
• Price Target: ―

WingArc1st Inc. exhibits strong financial performance with robust revenue growth and improved profitability, supported by effective cost management. Technical indicators suggest positive market momentum. Valuation metrics are reasonable, reflecting the company's strong fundamentals. The absence of earnings call data and corporate events limits further insights.

WingArc1st Inc. Business Overview & Revenue Model

Company Description

WingArc1st Inc. (4432) is a leading provider of business software solutions, focusing primarily on data empowerment and visualization tools. The company offers a range of products designed to help businesses harness the power of their data, improve decision-making processes, and enhance operational efficiency. WingArc1st operates in sectors such as data management, business intelligence, and enterprise software, with its core offerings including data analytics platforms, visualization software, and business process automation solutions.

How the Company Makes Money

WingArc1st Inc. generates revenue primarily through the sale of software licenses and subscription services for its data analytics and visualization products. The company offers both on-premise and cloud-based solutions, catering to a wide range of business needs and industries. In addition to software sales, WingArc1st earns income from consulting services, training, and support offered to help clients optimize their use of the company's products. Strategic partnerships with technology companies and resellers also play a significant role in expanding WingArc1st's market reach and contributing to its earnings. Furthermore, the company's focus on innovation and development of new features and products helps sustain its competitive edge and attract new clients.

WingArc1st Inc. Financial Statement Overview

Summary

WingArc1st Inc. presents a strong financial profile with impressive revenue and profit growth, effective cost management, and operational efficiency. The balance sheet indicates increased financial stability with reduced leverage, and strong cash flow generation, although there is room for improvement in maximizing Return on Equity.

Income Statement

WingArc1st Inc. has demonstrated a strong revenue growth trajectory, with Total Revenue increasing from ¥18.7B in 2020 to ¥28.7B in 2025. Gross Profit Margin remains high, indicating effective cost management, while Net Profit Margin has improved from 13.1% in 2020 to 20.6% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, supporting strong operational performance.

Balance Sheet

The company's balance sheet reflects a solid Equity Ratio, improving from 40.6% in 2020 to 61.0% in 2025, suggesting increased financial stability. The Debt-to-Equity Ratio has decreased over time, indicating reduced leverage, which is favorable for risk management. However, the Return on Equity, while stable, shows potential for further improvement to maximize shareholder returns.

Cash Flow

WingArc1st Inc. has maintained a healthy Free Cash Flow, with a notable increase from ¥6.1B in 2020 to ¥7.8B in 2025, highlighting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio remains robust, ensuring sufficient liquidity to support operations and growth initiatives. The company's strategic capital expenditure control further supports its positive cash flow position.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
28.71B	25.75B	22.35B	19.83B	18.29B
	Gross Profit
25.80B	25.75B	22.35B	19.83B	13.30B
	EBIT
8.19B	7.31B	5.95B	5.99B	3.21B
	EBITDA
10.12B	9.01B	7.46B	7.57B	6.40B
	Net Income Common Stockholders
5.93B	5.41B	4.40B	4.35B	2.45B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.72B	13.04B	11.22B	9.05B	5.19B
	Total Assets
68.44B	65.95B	62.55B	58.92B	55.91B
	Total Debt
8.56B	9.94B	12.21B	14.19B	16.16B
	Net Debt
-6.16B	-3.04B	1.04B	5.17B	10.99B
	Total Liabilities
26.59B	26.85B	27.98B	28.30B	30.23B
	Stockholders Equity
41.79B	39.07B	34.52B	30.54B	25.68B
Cash Flow		Free Cash Flow
7.81B	6.77B	6.31B	5.94B	4.45B
	Operating Cash Flow
8.20B	7.84B	6.87B	6.44B	4.95B
	Investing Cash Flow
-1.60B	-1.60B	-1.02B	-532.55M	-134.88M
	Financing Cash Flow
-4.86B	-4.46B	-3.73B	-2.08B	-4.65B

WingArc1st Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3880.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4432, the sentiment is Positive. The current price of 3880 is above the 20-day moving average (MA) of 3776.75, above the 50-day MA of 3700.80, and above the 200-day MA of 3366.18, indicating a bullish trend. The MACD of 19.19 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4432.

WingArc1st Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4432	76 Outperform	¥133.68B	22.56		2.68%	11.47%	8.73%
2326	76 Outperform	¥102.44B	31.36		1.16%	-5.73%	49.33%
4071	74 Outperform	¥89.45B	25.49		0.76%	25.27%	9.70%
4776	72 Outperform	¥148.42B	34.92		0.93%	16.68%	43.49%
4477	64 Neutral	¥42.79B	97.03		―	36.82%	―
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%
4259	59 Neutral	¥41.97B	―		―	17.02%	-315.36%

WingArc1st Inc. Corporate Events

WingArc1st Strengthens Ties with ITOCHU and Toshiba for Digital Expansion

WingArc1st Inc. has announced its relationship with ITOCHU Corporation and Toshiba Digital Solutions Corporation as controlling shareholders. The company emphasizes its independence while collaborating with these entities to accelerate digital transformation and expand data solutions. This strategic alignment aims to ensure sustainable growth and maximize shareholder value, while maintaining fair and appropriate conditions for minority shareholders in transactions.

WingArc1st Inc. to Acquire WingArcNex Inc. to Boost Digital Government Services

WingArc1st Inc. announced its decision to acquire all shares of WingArcNex Inc., making it a wholly owned subsidiary. This strategic move aligns with the company’s focus on expanding its digital government services, particularly in the local government sector. By integrating WingArcNex, WingArc1st aims to leverage its competitive resident services and collaborate on developing new solutions, thereby strengthening its market position and enhancing service offerings to local governments.

WingArc1st Inc. Announces Board of Directors Changes

WingArc1st Inc. has announced changes to its board of directors, with eight candidates nominated for director positions. These changes, pending approval at the upcoming Annual General Meeting, reflect the company’s ongoing commitment to strengthening its leadership team to support its strategic goals.

WingArc1st Inc. Announces Year-End Dividend and Shareholder Return Policy

WingArc1st Inc. has announced a year-end dividend of ¥62.00 per share, which includes a commemorative dividend of ¥20.00, for the fiscal year ending February 28, 2025. This decision aligns with the company’s policy to return profits to shareholders while maintaining necessary reserves for future growth and development. The company aims for a total shareholder return ratio of around 50% and plans to continue stable dividends and potential treasury share purchases.

WingArc1st Inc. Reports Strong Financial Growth for FY 2025

WingArc1st Inc. reported its consolidated financial results for the fiscal year ending February 28, 2025, showing an increase in revenue and profits compared to the previous year. The company saw a revenue increase of 11.5% and a profit before income taxes increase of 13%. Despite a decrease in total comprehensive income, the company increased its annual dividends, indicating a strong financial position and commitment to shareholder returns.