Weds Co., Ltd. (7551) AI Stock Analysis

• Market Cap: ¥9.62B
• Dividend Yield: 4.5%
• Average Volume (3M): 5.94K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.33
• Revenue Growth: 1.02%
• EPS Growth: -5.01%
• Country: JP
• Employees: 460
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Auto - Parts
• EPS (TTM): 4.87
• Shares Outstanding: 16,118,166
• 10 Day Avg. Volume: 5,560
• 30 Day Avg. Volume: 5,940
• PEG Ratio: 3.27
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥695.00 ▲(15.83%Upside)

Weds Co., Ltd. scores highly due to strong financial performance, supported by a robust balance sheet, effective cash management, and stable profitability. The attractive valuation with a low P/E ratio and high dividend yield further enhances its appeal. Technical analysis indicates a stable market position, contributing to a positive outlook. No earnings call or corporate events data were available for consideration.

Weds Co., Ltd. Business Overview & Revenue Model

Company Description

Weds Co., Ltd. (7551) is a Japanese company primarily engaged in the design, manufacture, and sale of automobile wheels and related automotive products. With a strong reputation in the automotive industry, Weds Co. offers a wide range of high-performance alloy wheels that cater to both consumer and commercial markets. The company is known for its innovation and quality in wheel technology, serving various automotive brands and aftermarket sectors.

How the Company Makes Money

Weds Co., Ltd. generates revenue through the sale of its alloy wheels and automotive products. The company's key revenue streams include the domestic and international sale of wheels to automotive manufacturers, retailers, and directly to consumers. Weds Co. benefits from its brand reputation and partnerships with car manufacturers, allowing it to secure contracts and maintain a steady demand for its products. The company may also engage in marketing collaborations and sponsorships within the automotive industry, which contribute to its visibility and sales growth.

Weds Co., Ltd. Financial Statement Overview

Summary

Weds Co., Ltd. demonstrates strong profitability with improved net profit margins and a stable, solid balance sheet. However, inconsistent revenue growth and missing cash flow data raise concerns about liquidity and cash management.

Income Statement

Weds Co., Ltd. demonstrates strong profitability with a consistent Gross Profit Margin around 21.5% to 22%. The Net Profit Margin has improved significantly from 2.5% in 2022 to approximately 4.4% in 2024 TTM, indicating enhanced cost management. However, revenue growth has been inconsistent, with a decline in 2023 but a slight recovery in TTM 2024. Margins such as the EBIT and EBITDA are stable and improving, highlighting robust operational efficiency.

Balance Sheet

The company maintains a solid financial position with a strong equity base, evidenced by an Equity Ratio of approximately 64% in 2024 TTM. The Debt-to-Equity Ratio is low, indicating prudent leverage management. Return on Equity has improved, reflecting enhanced profitability. However, a decline in cash and short-term investments could indicate potential liquidity challenges, despite the strong equity position.

Cash Flow

Cash flow analysis reveals potential concerns, as Operating Cash Flow has not been reported for TTM 2024, and Free Cash Flow has seen fluctuations over the years. Although there was a healthy Free Cash Flow in previous years, the lack of current data makes it challenging to assess recent performance trends. The cash flow ratios, therefore, cannot be calculated for the latest period, indicating a need for improved cash flow disclosure.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
34.80B	34.78B	36.50B	34.77B	30.87B	30.11B
	Gross Profit
7.51B	7.23B	7.81B	6.48B	6.34B	6.10B
	EBIT
2.31B	1.98B	2.53B	1.52B	1.55B	1.31B
	EBITDA
2.59B	2.79B	3.08B	1.90B	1.92B	1.61B
	Net Income Common Stockholders
1.52B	1.51B	1.76B	863.13M	1.00B	843.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.42B	7.58B	6.59B	5.00B	5.05B	4.90B
	Total Assets
26.79B	24.96B	23.97B	22.48B	21.54B	20.67B
	Total Debt
1.42B	1.60B	1.71B	1.83B	1.99B	2.13B
	Net Debt
-5.00B	-5.98B	-4.88B	-3.16B	-3.06B	-2.77B
	Total Liabilities
7.95B	7.23B	7.40B	7.26B	6.87B	12.24M
	Stockholders Equity
17.18B	16.15B	15.10B	13.86B	13.38B	12.66B
Cash Flow		Free Cash Flow
0.00	1.60B	2.09B	396.09M	704.29M	809.34M
	Operating Cash Flow
0.00	1.84B	2.20B	550.67M	2.16B	1.64B
	Investing Cash Flow
0.00	-119.69M	-97.46M	-42.75M	-1.22B	-288.89M
	Financing Cash Flow
0.00	-729.54M	-512.25M	-565.81M	-625.89M	1.05B

Weds Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 600.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7551, the sentiment is Positive. The current price of 600 is above the 20-day moving average (MA) of 599.10, above the 50-day MA of 598.88, and above the 200-day MA of 596.82, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7551.

Weds Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7551	82 Outperform	¥9.62B	6.73		4.50%	1.02%	-5.01%
7247	76 Outperform	¥9.53B	4.42		4.93%	1.49%	93.90%
7218	73 Outperform	¥10.10B	5.58		3.09%	-4.87%	-19.12%
7228	71 Outperform	¥8.68B	6.97		3.48%	8.63%	9.65%
7273	64 Neutral	¥10.35B	164.23		0.63%	2.22%	-90.98%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
5985	51 Neutral	¥8.82B	―		3.25%	24.16%	93.48%