Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs (MWC) AI Stock Analysis

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Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs

(NASDAQ:MWC)

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Positive Factors

Negative Factors

Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs (MWC) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $77.25M
Dividend Yield: ―
Average Volume (3M): 173.72K
Price to Earnings (P/E): 6.5
Beta (1Y): 3.35
Revenue Growth: -1.78%
EPS Growth: 12.72%
Country: US
Employees: 483
Sector: General
Sector Strength: 55
Industry: Software - Application

Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs Business Overview & Revenue Model

Company Description

Micware Co., Ltd. specializes in providing advanced software development and IT solutions, with a primary focus on the global automotive and mobility industries. The company is deeply involved in the creation and commercialization of In-Vehicle Infot...

Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs Earnings Call Summary

Earnings Call Date:Nov 10, 2026(Q2-2027)|% Change Since:11.11%|Next Earnings Date:Jul 06, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Micware reported strong gross profit and adjusted operating profit growth, improved margins, positive operating cash flow, a strengthened balance sheet, international expansion and progress on its micAuto and DynaPlanet platforms. These positives were partly offset by declines in reported U.S. dollar revenue, GAAP operating profit and net income, lower software-related services revenue, higher R&D spending and continued customer concentration. Management nevertheless emphasized that the core business remains profitable and that investments are supporting future platform growth.

Positive Updates

Gross Profit and Margin Expansion

Gross profit increased 9.9% year-over-year to $24.1 million, or 19.5% on a Japanese yen basis. Gross margin expanded by 4.9 percentage points to 36.3% from 31.4%, primarily due to a favorable shift in project mix as a major SDV development program moved to a more profitable, higher value-added successor project focused on upstream design and development.

Negative Updates

Reported Revenue Decline in U.S. Dollars

Revenue decreased 4.9% year-over-year to $66.4 million from $69.9 million, although management stated that the decrease was mainly due to the weaker yen. On a Japanese yen basis, revenue increased 3.4% year-over-year.

Company Guidance

Micware plans to launch DynaPlanet Studio in January 2027, continue investing in R&D while maintaining a profitable core business, and expand DynaPlanet revenue opportunities into data provision, licensing and its marketplace as its creator and user bases grow. The company plans to allocate 30% of its growth investment to micAuto platform and 70% to DynaPlanet platform, with the remaining proceeds intended for general corporate purposes, strategic investments in complementary technologies and business opportunities within its SDV and LBS segments as well as marketing and advertising activities; it is also currently in discussions with several automakers, both in Japan and overseas.

Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

MWC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	66Neutral	$154.41M	21.97	8.76%	―	-0.71%	-77.65%
YEXT	64Neutral	$757.00M	32.72	27.89%	―	-1.48%	257.78%
EGHT	59Neutral	$339.94M	48.73	4.98%	―	4.31%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
UPLD	42Neutral	$8.60M	-0.21	640.69%	―	-17.37%	17.97%

* General Sector Average

Performance Comparison

MWC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MWC	Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs	1.30	-6.90	-84.15%
EGHT	8x8 Inc	2.31	0.44	23.53%
EGAN	eGain Corporation	6.20	-4.86	-43.94%
UPLD	Upland Software	2.94	-14.56	-83.20%
YEXT	Yext Inc	7.67	-0.62	-7.48%

Glossary

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Disclaimer

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Micware Co., Ltd. Sponsored American Depositary Shares Repr 1 Shs AI Stock Analysis