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WingArc1st Inc. (4432) AI Stock Analysis

JP:4432

WingArc1st Inc.

(TSE/TYO:4432)

Select Model
Rating:78Outperform
Price Target:JPY 3,984.00â–²(12.07% Upside)
Action:reiterated
Date:10/15/26

The company's core strength is its exceptional financial health, marked by high margins, a debt-free balance sheet, and excellent cash conversion. This is complemented by a reasonable valuation and an attractive dividend yield. While the technical trend is bullish, momentum indicators suggest the stock is nearing overbought levels, and the fundamental watchpoint remains the deceleration in revenue growth, which could limit future upside.

Positive Factors
High ProfitabilityWingArc1st’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 VolatilityAlthough 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.

WingArc1st Inc. (4432) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:4432+10.22%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 123.83B
Dividend Yield
2.98%
Average Volume (3M)
159.90K
Price to Earnings (P/E)
16.8
Beta (1Y)
0.57
Revenue Growth
14.67%
EPS Growth
39.11%
Country
Japan
Employees
1,126
Sector
Technology
Sector Strength
61
Industry
Software - Application

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 Ja...

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 app...

WingArc1st Inc. Financial Statement Overview

Summary

Exceptional profitability with gross margins above 83% and a robust net margin of 22.5%. The balance sheet is a fortress with a debt-to-equity ratio of just 0.13, and cash flow conversion is excellent at 0.97. The primary concern is decelerating revenue growth, which tempers an otherwise outstanding financial profile.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue32.73B30.95B28.71B25.75B22.35B19.83B
Gross Profit27.78B27.53B24.03B21.64B18.46B16.43B
EBITDA11.79B10.73B12.51B11.24B9.26B8.93B
Net Income7.36B6.50B5.93B5.41B4.40B4.35B
Balance Sheet
Total Assets76.75B73.49B69.45B66.78B63.38B59.70B
Cash, Cash Equivalents and Short-Term Investments16.61B13.34B14.72B12.99B11.18B9.02B
Total Debt6.41B7.12B8.56B9.94B12.21B14.19B
Total Liabilities27.47B26.46B27.60B27.68B28.80B29.08B
Stockholders Equity49.26B47.00B41.79B39.07B34.52B30.54B
Cash Flow
Free Cash Flow8.88B7.02B7.81B7.35B6.78B6.34B
Operating Cash Flow9.15B7.20B8.20B7.84B6.87B6.44B
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

Technical Analysis SentimentPositive
Last Price3555.00

Price Trends

50DMA3425.16Positive
100DMA3040.81Positive
200DMA2899.33Positive

Market Momentum

MACD85.70Positive
RSI49.28Neutral
STOCH11.86Positive

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 3555.00 is below the 20-day moving average (MA) of 3613.25, above the 50-day MA of 3425.16, and above the 200-day MA of 2899.33, indicating a neutral trend. The MACD of 85.70 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 11.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4432.

WingArc1st Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4432 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4776JP:477690OutperformJPY 134.47B17.49―1.36%20.38%45.30%
JP:4828JP:482882OutperformJPY 77.08B15.7930.58%3.71%15.67%23.19%
JP:4432JP:443278OutperformJPY 124.76B16.77―2.98%14.67%39.11%
JP:3905JP:390565NeutralJPY 74.65B7.34――1178.31%―
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:4478JP:447858NeutralJPY 275.02B255.22――27.57%-21.74%
JP:4259JP:425953NeutralJPY 74.80B41.25――28.10%―

* Technology Sector Average

Performance Comparison

0%50%100%150%JP:4432JP:4828JP:3905JP:4259JP:4478JP:4776Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4432 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4432WingArc1st Inc.3555.00291.148.92%
JP:4828Business Engineering Corporation1267.0057.804.78%
JP:3905Datasection, Inc.1795.00-326.00-15.37%
JP:4259ExaWizards Inc.752.0086.0012.91%
JP:4478freee K.K.4645.001300.0038.86%
JP:4776Cybozu, Inc.2910.00-93.13-3.10%

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 29...

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 the...

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 comm...

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: Oct 15, 2026