Wacoal Holdings (WACLY) AI Stock Analysis

Wacoal Holdings

(Other OTC:WACLY)

Select Model

Rating:49Neutral

Price Target:$114.00▼(-0.32% Downside)

Action:reiterated

Date:08/17/26

WACLY's overall score is heavily penalized by its demanding valuation (194.6x P/E) and deteriorating operational fundamentals, such as negative EBIT and contracting cash flows. Bearish technical trends further suppress the score as the stock trades below all key moving averages. The company's sole major strength is a fortress balance sheet with minimal debt, which offers downside protection but fails to provide a catalyst for near-term growth.

Positive Factors

Conservative balance sheetLow leverage and a substantial equity base provide financial flexibility and a cushion against operating volatility. This balance-sheet resilience can help Wacoal continue funding its brands, stores, and digital channels while limiting the risk that debt service constrains strategic choices.

Negative Factors

Weak cash generationThe sharp decline in free cash flow and weaker conversion of earnings into cash reduce the funds available for reinvestment, dividends, and other capital allocation priorities. If this pattern persists, Wacoal may have less flexibility to strengthen brands or expand channels without relying on its balance-sheet resources.

Wacoal Holdings (WACLY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.18B
Dividend Yield: 2.81%
Average Volume (3M): 100
Price to Earnings (P/E): 162.1
Beta (1Y): 0.47
Revenue Growth: -1.50%
EPS Growth: -94.71%
Country: US
Employees: 14,784
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Manufacturers

Wacoal Holdings Business Overview & Revenue Model

Company Description

Wacoal Holdings Corp. is a global enterprise specializing in the production, wholesale distribution, and retail of a diverse range of textile goods, including intimate apparel, outerwear, activewear, and various accessories. Its market reach extends...

How the Company Makes Money

Wacoal Holdings makes money mainly by selling intimate apparel and related products under its portfolio of brands. Revenue is generated through a mix of (1) wholesale sales to department stores, specialty retailers, and other third-party outlets; (2)...

Wacoal Holdings Financial Statement Overview

Summary

Wacoal Holdings displays a mixed financial profile. The balance sheet is exceptionally secure with a 0.11 debt-to-equity ratio, providing a wide margin of safety. However, this is heavily offset by operational weaknesses, including negative EBIT, a razor-thin 0.58% net margin, and free cash flow that contracted by 73.4% in the trailing twelve months.

Income Statement

42Neutral

Balance Sheet

74Positive

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	177.62B	181.85B	173.90B	187.21B	188.59B	172.07B
Gross Profit	102.28B	104.16B	97.44B	104.08B	95.38B	86.58B
EBITDA	9.43B	10.68B	18.13B	3.90B	16.25B	15.70B
Net Income	1.02B	13.92B	6.99B	-8.63B	-1.77B	1.73B
Balance Sheet
Total Assets	289.98B	293.58B	272.18B	294.03B	285.30B	299.18B
Cash, Cash Equivalents and Short-Term Investments	31.54B	44.36B	25.43B	33.55B	26.78B	39.28B
Total Debt	24.17B	24.42B	26.84B	20.64B	20.41B	25.30B
Total Liabilities	75.76B	80.22B	77.29B	78.89B	72.18B	78.31B
Stockholders Equity	211.43B	210.51B	191.82B	211.83B	209.83B	217.99B
Cash Flow
Free Cash Flow	1.05B	5.32B	1.06B	7.91B	2.29B	6.83B
Operating Cash Flow	3.63B	8.85B	4.94B	11.29B	7.33B	16.62B
Investing Cash Flow	9.47B	38.27B	9.38B	14.05B	3.90B	-3.04B
Financing Cash Flow	-20.29B	-27.72B	-22.93B	-20.21B	-22.54B	-41.12B

Wacoal Holdings Technical Analysis

Technical Analysis SentimentNeutral

Last Price114.36

Price Trends

50DMA122.30Negative

100DMA129.67Negative

200DMA135.23Negative

Market Momentum

MACD-2.24Negative

RSI45.77Neutral

STOCH24.04Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WACLY, the sentiment is Neutral. The current price of 114.36 is above the 20-day moving average (MA) of 113.28, below the 50-day MA of 122.30, and below the 200-day MA of 135.23, indicating a neutral trend. The MACD of -2.24 indicates Negative momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WACLY.

Wacoal Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

WACLY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	76Outperform	$23.39B	24.71	35.64%	0.96%	14.68%	26.22%
COLM	66Neutral	$3.46B	15.53	14.64%	1.69%	0.02%	37.10%
GIII	65Neutral	$1.30B	9.79	7.53%	1.27%	-8.74%	-22.98%
PVH	62Neutral	$4.16B	-26.09	-3.49%	0.16%	1.64%	-140.84%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WACLY	49Neutral	$1.19B	162.07	0.49%	2.81%	-1.50%	-94.71%
UA	43Neutral	$2.11B	-4.41	-32.12%	―	-3.23%	-595.55%

* Consumer Cyclical Sector Average

Performance Comparison

WACLY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
WACLY	Wacoal	114.36	-60.02	-34.42%
COLM	Columbia Sportswear	71.12	22.02	44.84%
GIII	G-Iii Apparel	31.43	4.87	18.34%
PVH	PVH Corp	92.92	18.03	24.08%
RL	Ralph Lauren	397.53	91.49	29.89%
UA	Under Armour Inc - Class C	5.08	0.78	18.14%

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

Wacoal Holdings AI Stock Analysis