Wood One Co., Ltd. (7898) AI Stock Analysis

• Market Cap: ¥8.45B
• Dividend Yield: 2.69%
• Average Volume (3M): 11.83K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.63
• Revenue Growth: 0.90%
• EPS Growth: N/A
• Country: JP
• Employees: 2,222
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 37.91
• Shares Outstanding: 9,841,969
• 10 Day Avg. Volume: 8,750
• 30 Day Avg. Volume: 11,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥974.00
• Price Target Upside: 9.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥974.00 ▲(9.07% Upside)

The overall stock score of 73.5 reflects strong technical indicators and attractive valuation, offset by concerns over free cash flow and historical earnings volatility. The company's return to profitability and efficient cost management are positive factors.

Wood One Co., Ltd. Business Overview & Revenue Model

Company Description

Wood One Co.,Ltd. operates as a manufacturer and vendor of interior supplies for home and office use in Japan. The company's products include flooring, wall paneling, stairs, doors, storage and kitchen systems, etc. It also designs and plans timber structural materials for the home construction industry. The company was formerly known as Juken Sangyo Co., Ltd. and changed its name to Wood One Co.,Ltd. in October 2002. Wood One Co.,Ltd. was founded in 1935 and is headquartered in Hatsukaichi, Japan.

How the Company Makes Money

Wood One Co., Ltd. generates revenue primarily through the sale of its wooden building materials and home furnishings. The company's key revenue streams include domestic and international sales of its flooring products, doors, and kitchen systems, which are marketed to both individual consumers and large-scale construction companies. Additionally, Wood One Co., Ltd. benefits from strategic partnerships with construction firms and real estate developers, enhancing its market reach and distribution capabilities. The company's earnings are also bolstered by its commitment to sustainability, allowing it to tap into the growing demand for eco-friendly building materials.

Wood One Co., Ltd. Financial Statement Overview

Summary

Wood One Co., Ltd. displays a commendable recovery in profitability and operational efficiency, as evidenced by improved margins and a stable balance sheet. However, the negative free cash flow and historical volatility in earnings highlight areas needing attention.

Income Statement

The company has shown resilience with a modest revenue growth of 0.58% in the latest year after a previous decline. Gross profit margin improved to 27.12%, indicating better cost management, although net profit margin significantly recovered from -3.57% to 2.73%, showing a return to profitability. The EBIT and EBITDA margins also improved, reflecting operational efficiency. However, the volatility in net income over the years suggests potential risks.

Balance Sheet

The company maintains a stable financial position with an equity ratio of 43.8%, providing a solid buffer against liabilities. The debt-to-equity ratio is 0.89, indicating balanced leverage. Return on equity improved to 3.98%, reflecting better profitability. Despite this, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

The company's cash flow management shows mixed results. Operating cash flow is positive, yet the free cash flow remains negative, reflecting high capital expenditures. The operating cash flow to net income ratio improved, suggesting better cash conversion efficiency, but the negative free cash flow stresses the need for effective capital allocation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.16B	65.16B	64.78B	65.83B	66.58B	59.08B
Gross Profit	17.68B	17.68B	15.72B	17.46B	19.27B	18.06B
EBITDA	6.85B	6.85B	1.55B	4.21B	5.58B	5.33B
Net Income	1.78B	1.78B	-2.31B	365.00M	1.31B	1.17B
Balance Sheet
Total Assets	102.11B	102.11B	101.75B	97.02B	95.06B	91.14B
Cash, Cash Equivalents and Short-Term Investments	5.44B	5.44B	5.16B	4.55B	5.48B	8.38B
Total Debt	39.93B	39.93B	39.72B	36.60B	33.64B	35.62B
Total Liabilities	56.49B	56.49B	57.04B	52.62B	50.88B	50.02B
Stockholders Equity	44.71B	44.71B	43.86B	43.35B	43.15B	40.23B
Cash Flow
Free Cash Flow	0.00	-440.00M	-933.00M	-3.34B	940.00M	-960.00M
Operating Cash Flow	0.00	3.98B	4.03B	109.00M	4.60B	4.09B
Investing Cash Flow	0.00	-3.63B	-5.07B	-2.94B	-3.92B	-5.27B
Financing Cash Flow	0.00	71.00M	1.53B	1.94B	-3.80B	2.83B

Wood One Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 893.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7898, the sentiment is Positive. The current price of 893 is above the 20-day moving average (MA) of 892.35, above the 50-day MA of 873.36, and above the 200-day MA of 863.39, indicating a bullish trend. The MACD of 5.49 indicates Positive momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7898.

Wood One Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	75 Outperform	29.18B	14.31	3.49%	3.92%	2.12%	56.08%
7898	74 Outperform	¥8.45B	4.07	―	2.69%	0.90%	―
7887	72 Outperform	7.05B	13.18	0.41%	2.05%	7.48%	10.02%
8119	71 Outperform	8.30B	16.36	7.28%	7.38%	-4.39%	-58.25%
7822	56 Neutral	11.40B	407.20	-0.07%	3.88%	0.89%	-99.30%
9827	55 Neutral	7.98B	66,907.22	0.73%	5.55%	-1.39%	-99.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%