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Weathernews Inc. (4825) AI Stock Analysis

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JP:4825

Weathernews Inc.

(TSE/TYO:4825)

Select Model
Rating:70Outperform
Price Target:JPY 2,142.00▲(15.53% Upside)
Action:reiterated
Date:10/10/26

The company's exceptional financial strength, marked by high profitability and a debt-free balance sheet, is the primary driver of the score. However, this is significantly offset by weak technical momentum, as the stock is in a clear downtrend across all major moving averages with oversold oscillators. The moderate valuation provides a neutral to slightly positive influence.

Positive Factors
Recurring weather-services modelRecurring B2B contracts and B2C services create an ongoing monetization model because customers continually need forecasts, alerts and decision support. Embedding weather information into operational workflows can support retention and make revenue more durable across the next several quarters.
Negative Factors
Modest growth profileThe company’s revenue trajectory is durable but not consistently high growth, with modest expansion in FY2024 and FY2025. This can limit the pace of operating leverage and earnings compounding, placing greater importance on continued margin improvement and customer retention.

Weathernews Inc. (4825) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%30%JP:4825-1.12%EWJ+15.69%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 83.14B
Dividend Yield
2.10%
Average Volume (3M)
247.57K
Price to Earnings (P/E)
22.1
Beta (1Y)
0.69
Revenue Growth
4.83%
EPS Growth
5.95%
Country
Japan
Employees
1,105
Sector
Communication Services
Sector Strength
60
Industry
Internet Content & Information

Weathernews Inc. Business Overview & Revenue Model

Company Description

Weathernews Inc. offers specialized weather forecasting and intelligence services to a diverse clientele spanning the land, maritime, aerospace, media, environmental, mobile telecommunications, and sports sectors. The company serves both domestic Jap...

How the Company Makes Money

Weathernews generates revenue primarily by selling weather information and weather-driven decision-support services. Key revenue streams include (1) B2B service contracts in which corporate customers pay recurring fees for access to specialized forec...

Weathernews Inc. Financial Statement Overview

Summary

Strong financial health with consistent revenue growth, expanding margins, a debt-free balance sheet, and robust cash flow generation. Net income grew 22% YoY, and free cash flow conversion is high at 95%.

Income Statement

88Very Positive

Balance Sheet

95Very Positive

Cash Flow

85Very Positive
Financial statement breakdown
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue24.81B24.48B23.51B22.24B21.11B19.65B
Gross Profit12.28B11.59B10.87B9.41B8.96B8.18B
EBITDA5.73B5.75B5.12B3.87B4.12B3.78B
Net Income3.73B3.81B3.12B2.44B2.40B2.16B
Balance Sheet
Total Assets25.63B28.26B25.76B23.06B21.03B19.17B
Cash, Cash Equivalents and Short-Term Investments15.67B18.84B16.98B14.31B12.52B11.42B
Total Debt92.31M0128.76M15.16M52.78M83.19M
Total Liabilities3.88B4.37B4.21B3.27B2.63B2.33B
Stockholders Equity21.73B23.88B21.53B19.78B18.40B16.84B
Cash Flow
Free Cash Flow3.46B3.46B4.17B3.01B1.96B3.11B
Operating Cash Flow3.64B3.64B4.43B3.39B2.38B3.57B
Investing Cash Flow-138.91M-138.91M-269.61M-408.00M-254.89M-395.14M
Financing Cash Flow-1.77B-1.77B-1.44B-1.31B-1.10B-1.10B

Weathernews Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price1854.00

Price Trends

50DMA1950.34Negative
100DMA1980.68Negative
200DMA1991.45Negative

Market Momentum

MACD-26.33Negative
RSI43.54Neutral
STOCH43.18Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4825, the sentiment is Negative. The current price of 1854.00 is below the 20-day moving average (MA) of 1882.30, below the 50-day MA of 1950.34, and below the 200-day MA of 1991.45, indicating a bearish trend. The MACD of -26.33 indicates Negative momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 43.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4825.

Weathernews Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

JP:4825 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3901JP:390186OutperformJPY 19.37B12.27―3.48%-3.53%4.71%
JP:3843JP:384382OutperformJPY 38.12B10.65―2.06%12.86%27.55%
JP:4825JP:482570OutperformJPY 86.18B22.09―2.10%4.83%5.95%
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
JP:3845JP:384556NeutralJPY 7.94B155.17――-3.42%―
JP:7077JP:707745NeutralJPY 2.22B-9.96――10.50%-142.03%

* Communication Services Sector Average

Performance Comparison

0%50%100%JP:4825JP:3843JP:3845JP:3901JP:7077JP:336ADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4825 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4825Weathernews Inc.1854.00-37.79-2.00%
JP:3843FreeBit Co., Ltd.1995.00461.1330.06%
JP:3845I-Freek Mobile Inc.360.00133.0058.59%
JP:3901MarkLines Co.Ltd.1496.00-192.43-11.40%
JP:7077ALiNK Internet, Inc.1032.00-23.00-2.18%
JP:336ADynamic Map Platform Co., Ltd.1083.00213.0024.48%

Weathernews Inc. Corporate Events

Weathernews Sets FY2027 Outlook on Margin Gains and Dividend Policy

Oct 8, 2026

Weathernews Inc. reported its financial results for the first quarter of FY2027/5, covering the three months ended August 31, 2026, highlighting an expansion in gross margins. The company outlined revenue performance by domain, discussed key business...

Weathernews lifts sales but sees profit dip, keeps guidance after stock split

Oct 8, 2026

Weathernews Inc. reported a 5.5% year-on-year increase in net sales to ¥6.34 billion for the three months ended August 31, 2026, but operating profit slipped 2.2% to ¥892 million and profit attributable to owners of parent fell 11.9% to ¥592 million....

Weathernews to Grant Long-Term Restricted Stock to Executives and Employees

Sep 10, 2026

Weathernews Inc. will dispose of 36,600 shares of its treasury stock as restricted stock compensation on October 5, 2026, valued at 1,997 yen per share for a total of 73,090,200 yen. The shares will be allocated to three executive directors, ten exec...

Weathernews Uses Treasury Stock for Performance-Linked Equity Awards

Sep 10, 2026

Weathernews Inc. will dispose of 24,600 shares of treasury stock as performance-based equity compensation to directors, executive officers and employees for the fiscal year ended May 31, 2026. The shares, priced at 1,997 yen each for a total of 49,12...

Weathernews Links Executive Pay to Financial and Climate Targets for FY41

Aug 31, 2026

Weathernews Inc. has detailed a new performance-linked compensation framework for executive directors for its 41st fiscal year, tying pay to both financial and climate-related indicators aligned with its Medium-Term Vision 2026. Half of the variable...

Weathernews boosts profits, cash and dividends on rising sales

Jul 24, 2026

Weathernews Inc. reported consolidated net sales of ¥24.48 billion for the fiscal year ended May 31, 2026, up 4.1% year on year, with operating profit rising 16.1% to ¥5.24 billion and profit attributable to owners of parent climbing 22.2% to ¥3.81 b...

Weathernews Tightens Takeover Defense to Safeguard Corporate Value

Jul 23, 2026

Weathernews Inc., a Tokyo Prime Market-listed provider of meteorological and climate-related information services, operates under a “Supporter Value Creation” philosophy aimed at enhancing corporate value and shareholder interests over the long term....

Weathernews Eases Eligibility for Shareholder Benefits, Expands Access to Paid Weather Service

Jul 23, 2026

Weathernews Inc., a Prime Market-listed Japanese provider of professional weather information services, is expanding access to its paid “Weathernews Pro” offering as part of a revised shareholder benefit strategy. The company aims to encourage longer...

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 10, 2026