WADAKOHSAN CORPORATION (8931) AI Stock Analysis

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WADAKOHSAN CORPORATION

(TSE/TYO:8931)

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Rating:51Neutral

Price Target:JPY 1,210.00▼(-2.50% Downside)

Action:reiterated

Date:11/07/26

The overall score of 51 reflects a high-risk investment profile where severe cash flow deficits and bearish technical momentum overshadow a superficially attractive valuation. While the low 6.8x P/E ratio and 5.7% dividend yield might entice income and value investors, the company's accelerating cash burn, rising debt burden, and deteriorating margins raise significant long-term liquidity concerns. Combined with a persistent technical downtrend, the stock warrants considerable caution.

Positive Factors

Operating ProfitabilityOperating profitability in the low-to-mid teens and latest-year net margins in the mid-single digits indicate the company remains profitable despite a softer year. This provides an earnings base that can support operations if revenue stabilizes.

Negative Factors

Elevated LeverageRising debt relative to equity leaves the company more exposed to funding conditions and a weaker property cycle. Higher leverage can increase financing sensitivity and restrict financial flexibility, making it harder to absorb operating volatility or fund growth internally.

WADAKOHSAN CORPORATION (8931) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 13.65B
Dividend Yield: 5.56%
Average Volume (3M): 11.16K
Price to Earnings (P/E): 7.0
Beta (1Y): 0.44
Revenue Growth: -0.05%
EPS Growth: -45.05%
Country: Japan
Employees: 125
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

WADAKOHSAN CORPORATION Business Overview & Revenue Model

Company Description

Wadakohsan Corporation focuses on the construction and sale of diverse residential properties within Japan, including condominiums, individual houses, and plots for home building. Additionally, the company provides rental, leasing, and property manag...

WADAKOHSAN CORPORATION Financial Statement Overview

Summary

The company presents a high-risk financial profile. Despite top-line revenue growth, margins are compressing and leverage has increased to a high 1.89x debt-to-equity ratio. Most alarmingly, the company suffers from persistently negative operating and free cash flows, forcing a heavy reliance on external debt to fund its accelerating cash burn.

Income Statement

62Positive

Balance Sheet

45Neutral

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	42.14B	42.14B	40.13B	38.83B	42.71B	41.79B
Gross Profit	8.26B	8.70B	9.73B	8.49B	8.39B	7.99B
EBITDA	5.14B	5.74B	6.02B	5.22B	5.09B	4.62B
Net Income	1.94B	2.62B	3.12B	2.64B	2.38B	2.34B
Balance Sheet
Total Assets	120.14B	113.08B	110.66B	101.23B	86.14B	98.30B
Cash, Cash Equivalents and Short-Term Investments	14.71B	12.62B	17.20B	17.35B	11.76B	17.01B
Total Debt	72.20B	65.50B	57.37B	52.60B	44.54B	50.68B
Total Liabilities	84.85B	78.36B	77.73B	70.57B	57.56B	71.65B
Stockholders Equity	35.29B	34.72B	32.93B	30.66B	28.58B	26.66B
Cash Flow
Free Cash Flow	0	-11.89B	-3.98B	-1.92B	881.56M	7.53B
Operating Cash Flow	0	-9.02B	-1.94B	-1.18B	2.15B	8.22B
Investing Cash Flow	0	-2.79B	-2.09B	-458.49M	-1.07B	190.59M
Financing Cash Flow	0	7.27B	3.90B	7.47B	-6.64B	-3.12B

WADAKOHSAN CORPORATION Technical Analysis

Technical Analysis SentimentNeutral

Last Price1241.00

Price Trends

50DMA1281.22Negative

100DMA1305.92Negative

200DMA1406.71Negative

Market Momentum

MACD-18.32Negative

RSI46.99Neutral

STOCH31.40Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8931, the sentiment is Neutral. The current price of 1241.00 is above the 20-day moving average (MA) of 1237.20, below the 50-day MA of 1281.22, and below the 200-day MA of 1406.71, indicating a neutral trend. The MACD of -18.32 indicates Negative momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8931.

WADAKOHSAN CORPORATION Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8931 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8927	76Outperform	JPY 13.76B	5.06	―	3.29%	23.82%	39.93%
JP:3246	67Neutral	JPY 6.95B	10.50	―	3.52%	40.39%	269.30%
JP:8918	62Neutral	JPY 13.84B	11.85	―	1.11%	72.25%	887.86%
JP:3242	58Neutral	JPY 19.76B	8.93	―	4.55%	-35.13%	-94.87%
JP:3475	56Neutral	JPY 30.36B	12.20	―	4.55%	27.64%	6.54%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:8931	51Neutral	JPY 13.45B	7.01	―	5.56%	-0.05%	-45.05%

* General Sector Average

Performance Comparison

JP:8931 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8931	WADAKOHSAN CORPORATION	1241.00	-315.10	-20.25%
JP:3242	Urbanet Corporation Co., Ltd.	528.00	-52.54	-9.05%
JP:3246	KOSE R.E. Co., Ltd.	682.00	-4.31	-0.63%
JP:3475	Good Com Asset Co.,Ltd.	1010.00	-238.84	-19.12%
JP:8918	LAND Co., Ltd.	9.00	0.00	0.00%
JP:8927	Meiho Enterprise Co., Ltd.	456.00	-4.21	-0.92%

WADAKOHSAN CORPORATION Corporate Events

WADAKOHSAN’s First-Half Profit Slumps Despite Flat Sales, Full-Year Outlook Intact

Oct 2, 2026

WADAKOHSAN CORPORATION reported flat net sales of ¥22.18 billion for the six months ended Aug. 31, 2026, but profits fell sharply, with operating profit down 25.7% and net profit down 41.6% year on year, pushing basic earnings per share to ¥87.85 fro...

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: Nov 07, 2026

WADAKOHSAN CORPORATION AI Stock Analysis