Wacom Co (6727) AI Stock Analysis

• Market Cap: ¥79.62B
• Dividend Yield: 3.78%
• Average Volume (3M): 499.65K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.31
• Revenue Growth: -0.59%
• EPS Growth: 82.31%
• Country: JP
• Employees: 1,066
• Sector: Technology
• Sector Strength: 67
• Industry: Computer Hardware
• EPS (TTM): 35.46
• Shares Outstanding: 146,000,000
• 10 Day Avg. Volume: 583,940
• 30 Day Avg. Volume: 499,653
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥980.70
• Price Target Upside: 77.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Wacom Co exhibits strong financial health and a stable balance sheet, which are significant strengths. The valuation is attractive, supported by a reasonable P/E ratio and a solid dividend yield. However, technical analysis reveals a bearish trend, with the stock trading below key moving averages and indicators suggesting potential further downside. The challenges in revenue growth and free cash flow sustainability are areas to watch.

Wacom Co Business Overview & Revenue Model

Company Description

Wacom Co., Ltd. (6727) is a leading global technology company headquartered in Japan, specializing in the development and manufacture of interactive pen tablets, displays, and other digital interface devices. Wacom's core products enable users in creative industries, such as graphic design, animation, and digital art, to achieve precision and control in their work. The company's product portfolio includes pen tablets like the Wacom Intuos and Cintiq, as well as stylus products and various accessories. Wacom also provides digital ink solutions and technologies for a wide range of industries, enhancing user interaction and experience.

How the Company Makes Money

Wacom generates revenue through the sale of its interactive pen tablets, displays, and digital interface devices to both individual consumers and enterprise clients. A significant portion of the company's earnings comes from its high-margin professional creative products, such as the Cintiq series, which are popular among artists and designers. Wacom also licenses its digital ink technology to other companies, creating an additional revenue stream. Furthermore, Wacom has established strategic partnerships with technology firms to integrate its solutions into third-party products, which helps expand its market reach and increase sales. The company's global distribution network, including direct sales, online platforms, and retail partnerships, also plays a crucial role in driving revenue.

Wacom Co Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
118.79B	112.73B	108.79B	108.53B	88.58B
	Gross Profit
36.77B	31.17B	39.61B	41.41B	29.71B
	EBIT
7.06B	2.01B	13.02B	13.41B	5.57B
	EBITDA
8.57B	4.43B	16.46B	16.36B	7.53B
	Net Income Common Stockholders
4.56B	1.79B	10.95B	10.23B	3.92B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.66B	20.02B	21.79B	32.04B	21.54B
	Total Assets
79.62B	75.28B	73.33B	71.18B	51.16B
	Total Debt
14.00B	9.00B	2.00B	6.00B	8.50B
	Net Debt
-17.66B	-11.02B	-19.79B	-26.04B	-13.04B
	Total Liabilities
43.65B	34.79B	29.83B	33.49B	23.42B
	Stockholders Equity
35.97B	40.49B	43.50B	37.69B	27.73B
Cash Flow		Free Cash Flow
15.16B	-2.60B	-1.76B	13.35B	11.11B
	Operating Cash Flow
17.48B	-1.06B	-235.53M	14.58B	13.06B
	Investing Cash Flow
-2.28B	-3.14B	-1.37B	-1.38B	-1.96B
	Financing Cash Flow
-6.43B	1.07B	-10.52B	-4.05B	-5.82B

Wacom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 552.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6727, the sentiment is Negative. The current price of 552 is above the 20-day moving average (MA) of 502.70, below the 50-day MA of 561.23, and below the 200-day MA of 645.66, indicating a neutral trend. The MACD of -4.65 indicates Negative momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 92.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6727.

Wacom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6758	79 Outperform	$22.80T	19.98	14.40%	0.52%	9.56%	26.52%
6702	73 Outperform	$5.80T	26.08	11.70%	0.85%	-5.48%	-11.96%
7735	71 Outperform	¥940.63B	9.80	25.48%	2.77%	30.34%	55.11%
6752	70 Outperform	$3.94T	11.82	7.23%	2.19%	1.72%	-33.60%
6727	62 Neutral	¥79.62B	15.57	13.05%	3.78%	-0.59%	82.31%
Sector *	60 Neutral	$10.93B	10.46	-6.70%	2.99%	7.54%	-12.22%
6753	44 Neutral	¥553.75B	―		―	-5.57%	38.15%

Wacom Co Corporate Events

Wacom Revises Financial Forecasts and Increases Dividend for FY2024

Wacom Co., Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2025, noting an upward adjustment in operating profit and a downward revision in net profit due to an extraordinary loss from business restructuring expenses. Despite these changes, Wacom has increased its dividend forecast, reflecting its commitment to shareholder returns and financial stability as part of its ‘Wacom Chapter 3’ business direction.

Wacom Completes Treasury Stock Acquisition

Wacom Co., Ltd. announced the completion of its treasury stock acquisition, which was conducted in accordance with the Japanese Companies Act. The acquisition involved 1,491,900 shares at a total cost of 931,579,300 yen, conducted through the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 5,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

Wacom Acquires Shares in IoT Solutions Firm JENESIS

Wacom Co., Ltd. has announced the acquisition of shares in JENESIS Co., Ltd., a company known for its comprehensive IoT solutions. This strategic move is intended to deepen collaboration and explore human-centric integrated pen and ink technology experiences, aligning with Wacom’s medium-term management policy, ‘Wacom Chapter 4’. The acquisition is expected to have minimal impact on Wacom’s consolidated business performance for the fiscal year ending March 31, 2025.