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

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Wood One Co., Ltd.

(TSE/TYO:7898)

Select Model

Rating:48Neutral

Price Target:JPY 901.00▲(6.50% Upside)

Action:reiterated

Date:08/17/26

The score is primarily constrained by weak financial performance, driven by volatile earnings, thin margins, and recurring negative free cash flow alongside moderate-to-elevated leverage. Technicals are modestly positive in the short term but remain mixed versus longer-term moving averages. Valuation is partially supported by a ~2.6% dividend yield, but the negative P/E highlights ongoing earnings weakness.

Positive Factors

Positive Operating Cash FlowPositive operating cash flow indicates the core business continues to generate cash before investment spending, providing an internal funding source for operations even though free cash flow remains pressured.

Negative Factors

Flat Revenue GrowthBroadly stagnant revenue suggests limited market expansion and weak pricing or volume momentum. Without stronger top-line growth, the company has less ability to absorb costs, invest in products, or improve profitability sustainably.

Wood One Co., Ltd. (7898) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.87B
Dividend Yield: 2.84%
Average Volume (3M): 5,651
Price to Earnings (P/E): -4.1
Beta (1Y): 0.55
Revenue Growth: 4.00%
EPS Growth: -208.45%
Country: Japan
Employees: 2,173
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Furnishings, Fixtures & Appliances

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

Company Description

Wood One Co.,Ltd. is a Japanese firm that manufactures and distributes a wide array of interior furnishings for both residential and commercial environments. Its product catalog features items like flooring, wall finishes, staircases, doors, and comp...

How the Company Makes Money

Wood One makes money primarily by selling wood-based building and interior products used in homebuilding and renovations. Key revenue streams typically include: (1) Product sales of interior building materials and fixtures (such as wood interior comp...

Wood One Co., Ltd. Financial Statement Overview

Summary

Financial quality is below average: revenue is broadly flat, profitability is volatile with a return to net losses in 2026, and margins are thin. Leverage is moderate-to-elevated (debt close to equity) and free cash flow has been negative in most years, limiting flexibility despite positive operating cash flow.

Income Statement

46Neutral

Balance Sheet

52Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	66.45B	66.00B	65.16B	64.78B	65.83B	66.58B
Gross Profit	17.58B	17.60B	17.68B	15.72B	17.46B	19.27B
EBITDA	5.42B	4.85B	6.85B	1.55B	4.21B	5.58B
Net Income	-1.93B	-1.46B	1.78B	-2.31B	365.00M	1.31B
Balance Sheet
Total Assets	106.53B	104.25B	102.11B	101.75B	97.02B	95.06B
Cash, Cash Equivalents and Short-Term Investments	4.36B	4.13B	5.44B	5.16B	4.55B	5.48B
Total Debt	44.68B	42.84B	43.26B	43.28B	39.83B	37.08B
Total Liabilities	61.30B	58.95B	56.49B	57.03B	52.61B	50.87B
Stockholders Equity	44.28B	44.38B	44.71B	43.86B	43.35B	43.15B
Cash Flow
Free Cash Flow	0	-2.96B	-440.00M	-933.00M	-3.34B	940.00M
Operating Cash Flow	0	2.61B	3.98B	4.03B	109.00M	4.60B
Investing Cash Flow	0	-5.26B	-3.63B	-5.07B	-2.94B	-3.92B
Financing Cash Flow	0	1.45B	71.00M	1.53B	1.94B	-3.80B

Wood One Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price846.00

Price Trends

50DMA906.58Negative

100DMA892.88Negative

200DMA928.95Negative

Market Momentum

MACD-15.17Positive

RSI30.25Neutral

STOCH25.47Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7898, the sentiment is Negative. The current price of 846.00 is below the 20-day moving average (MA) of 888.55, below the 50-day MA of 906.58, and below the 200-day MA of 928.95, indicating a bearish trend. The MACD of -15.17 indicates Positive momentum. The RSI at 30.25 is Neutral, neither overbought nor oversold. The STOCH value of 25.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7898.

Wood One Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7898 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8130	82Outperform	JPY 182.48B	11.09	―	4.98%	3.91%	28.69%
JP:7981	72Outperform	JPY 195.19B	13.19	―	4.25%	1.75%	7.95%
JP:7840	67Neutral	JPY 44.89B	15.02	―	3.18%	4.44%	26.86%
JP:7955	65Neutral	JPY 30.47B	8.08	―	3.90%	5.18%	56.14%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:7887	57Neutral	JPY 6.66B	3.79	―	2.95%	40.27%	-18.17%
JP:7898	48Neutral	JPY 7.82B	-4.09	―	2.84%	4.00%	-208.45%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7898 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7898	Wood One Co., Ltd.	846.00	-17.21	-1.99%
JP:7840	France Bed Holdings Co., Ltd.	1291.00	5.77	0.45%
JP:7887	Nankai Plywood Co., Ltd.	1357.00	-186.31	-12.07%
JP:7955	Cleanup Corporation	846.00	79.86	10.42%
JP:7981	Takara Standard Co., Ltd	3015.00	548.24	22.23%
JP:8130	Sangetsu Corporation	3115.00	206.88	7.11%

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: Aug 17, 2026

Wood One Co., Ltd. AI Stock Analysis