Wacoal Holdings (WACLY) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: 1.49%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 41.0
• Beta (1Y): 0.37
• Revenue Growth: -10.68%
• EPS Growth: N/A
• Country: US
• Employees: 17,408
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.60
• Shares Outstanding: 11,100,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -16.11
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.41
• 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: 64 Neutral
• Price Target: ―

Wacoal Holdings demonstrates financial stability with a solid equity base and low leverage, but it struggles with growth and profitability pressures. The technical analysis shows some short-term positive momentum, yet the lack of comprehensive indicators limits insights. The company's high P/E ratio reflects potential overvaluation, although the dividend yield is moderately attractive. Overall, the stock score reflects a need for strategic growth enhancements while maintaining financial health.

Wacoal Holdings Business Overview & Revenue Model

Company Description

Wacoal Holdings (WACLY) is a leading global manufacturer and retailer of intimate apparel based in Japan. The company is renowned for its high-quality lingerie, shapewear, and related women’s apparel. Wacoal operates through various subsidiaries and brands, delivering a wide range of products designed to enhance comfort, fit, and style. With a strong presence in international markets, Wacoal leverages its extensive research and development capabilities to innovate and cater to diverse consumer needs.

How the Company Makes Money

Wacoal Holdings generates revenue primarily through the sale of its intimate apparel products, which include bras, panties, shapewear, and other lingerie items. The company operates a multi-channel distribution strategy, selling its products through department stores, specialty retail stores, and direct-to-consumer online platforms. Additionally, Wacoal partners with various retailers and distributors worldwide to expand its reach and accessibility. The company invests in marketing and brand-building initiatives to maintain its reputation for quality and innovation, which in turn supports its pricing power and profitability. Key factors contributing to Wacoal's earnings include its strong brand recognition, continual product innovation, and strategic expansion into new markets.

Wacoal Holdings Financial Statement Overview

Summary

Wacoal Holdings exhibits a stable financial position with strong equity and low leverage. However, the company faces growth challenges with a declining revenue trajectory and profitability pressures. The cash flow remains stable but shows a declining trend in free cash flow, which needs monitoring. Overall, the company is financially stable but requires strategic initiatives to enhance growth and profitability.

Income Statement

Wacoal Holdings shows a mixed performance in its income statement. The TTM data reveals a gross profit margin of 55.7% and a net profit margin of 2.4%, indicating profitability but with room for improvement. The revenue has decreased slightly from the previous year, showing a negative growth trend. EBIT and EBITDA margins are 0.2% and 12%, respectively, suggesting moderate operating efficiency but a significant drop from previous years. Overall, profitability is stable but growth challenges exist.

Balance Sheet

The balance sheet of Wacoal Holdings is relatively strong, with a debt-to-equity ratio of 0.13, indicating low leverage and financial stability. The return on equity (ROE) is underwhelming at 2.1%, reflecting moderate profitability. An equity ratio of 71.2% signifies a solid equity base, supporting the company's financial health. Despite the strong equity, the low ROE highlights potential inefficiencies in generating returns.

Cash Flow

Cash flow analysis presents a mixed picture. Free cash flow has decreased compared to the previous year, indicating challenges in cash generation. The operating cash flow to net income ratio is 1.97, suggesting good cash flow efficiency relative to net income. The free cash flow to net income ratio is 1.46, reflecting adequate cash conversion. Despite operational cash flow stability, the decline in free cash flow growth raises concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
179.34B	187.21B	188.59B	172.07B	152.20B	186.76B
	Gross Profit
99.94B	104.08B	95.38B	86.58B	84.41B	101.80B
	EBIT
382.00M	-9.50B	4.10B	494.00M	2.71B	8.12B
	EBITDA
21.52B	3.90B	16.25B	11.18B	8.83B	14.15B
	Net Income Common Stockholders
4.36B	-8.63B	-1.77B	1.73B	7.03B	3.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.15B	35.54B	26.78B	37.48B	65.25B	29.36B
	Total Assets
286.74B	294.03B	285.30B	299.18B	322.76B	277.69B
	Total Debt
27.29B	20.64B	20.41B	25.30B	55.10B	17.07B
	Net Debt
-2.05B	-12.90B	-6.36B	-11.91B	-8.46B	-10.84B
	Total Liabilities
79.38B	78.89B	72.18B	78.31B	102.51B	65.45B
	Stockholders Equity
204.11B	211.83B	209.83B	217.99B	217.25B	208.16B
Cash Flow		Free Cash Flow
6.35B	7.91B	2.29B	6.83B	-1.34B	6.34B
	Operating Cash Flow
8.59B	11.29B	7.33B	16.62B	4.26B	13.32B
	Investing Cash Flow
8.72B	14.05B	4.30B	-2.93B	-3.92B	2.69B
	Financing Cash Flow
-19.12B	-20.21B	-22.94B	-41.12B	34.97B	-17.59B

Wacoal Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 174.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WACLY, the sentiment is Positive. The current price of 174.16 is above the 20-day moving average (MA) of 171.42, above the 50-day MA of 172.30, and above the 200-day MA of 163.47, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 67.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WACLY.

Wacoal Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKE	79 Outperform	$2.11B	10.59	44.55%	3.38%	-1.08%	-8.20%
RVLV	72 Outperform	$1.38B	27.53	11.97%	―	9.09%	106.50%
VSCO	67 Neutral	$1.82B	11.62	31.30%	―	0.76%	49.95%
WACLY	64 Neutral	$1.81B	40.96	3.45%	1.49%	-10.68%	―
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%
PTON	57 Neutral	$2.87B	―	58.47%	―	-6.35%	79.04%
HBI	52 Neutral	$1.73B	―	-23.24%	―	-33.72%	-892.32%