WDB Holdings Co Ltd

WDB Holdings maintains a strong liquidity position, with cash and equivalents amounting to ¥20.24 billion, representing 50.8% of total assets. The company operates with no long-term debt, resulting in a debt-to-equity ratio of 0.0, and a current ratio of 3.82, indicating robust short-term liquidity. This capital structure supports operational flexibility and reduces financial risk.

Profitability metrics show a return on equity (ROE) of 1.85% and a return on assets (ROA) of 1.39%, both below the industry median for Employment Services firms. The net income of ¥552 million on ¥12.9 billion in revenue yields a net margin of 4.29%, which is in line with the industry's average profitability. However, the operating margin of 10.14% (¥1.31 billion on ¥12.9 billion in revenue) suggests efficient cost management relative to peers.

The company's revenue is concentrated in its core employment services segment, with no disclosed geographic diversification. This lack of geographic segmentation increases exposure to regional economic fluctuations and regulatory changes in Japan. The absence of international operations limits growth opportunities and diversification benefits.

Looking ahead, revenue is projected to remain stable, with the most recent actual revenue of ¥51.14 billion slightly exceeding the mean analyst estimate of ¥50.0 billion. The company's FY outlook indicates a modest growth trajectory, supported by continued demand for staffing services in Japan's industrial and commercial sectors.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's capital structure is currently free of dilutionary pressures, and no recent equity issuances or ATM programs have been disclosed. However, the absence of long-term debt could change if the company pursues expansion or acquires new businesses.

Recent events include the release of the latest financial results, which showed a positive surprise in EPS, with actual earnings of ¥155.36 per share exceeding the mean estimate of ¥135.50. This outperformance suggests strong operational execution and may support investor confidence in the near term.

Net margin of 4.3% outperforms the 3.5% median within the Employment Services peer group.

The company maintains a zero debt-to-equity ratio, indicating a conservative capital structure with low leverage.

Revenue demonstrated a 1.8% compound annual growth rate over the four-year period ending FY2026.

Risk flags for dilution, liquidity, and credit are all assessed at low levels.

Return on equity of 1.85% places the company in the bottom quartile of its cohort.

Revenue ¥12.18B, −0,9% YoY; Operating income −8,1% YoY.

• ▍Revenue ¥12.18B, −0,9% YoY
• ▍Operating income −8,1% YoY
• ▍Net income −37,7% YoY
• ▍Net margin 4.1%

Revenue ¥12.73B, −3,6% YoY; Operating income −20,1% YoY.

• ▍Revenue ¥12.73B, −3,6% YoY
• ▍Operating income −20,1% YoY
• ▍Net income −16,4% YoY
• ▍Net margin 6.1%

Revenue ¥12.41B, −2,5% YoY; Operating income −21,1% YoY.

• ▍Revenue ¥12.41B, −2,5% YoY
• ▍Operating income −21,1% YoY
• ▍Net income −19,7% YoY
• ▍Net margin 5.0%

Revenue ¥12.97B, +0,6% YoY; Operating income +1,1% YoY.

• ▍Revenue ¥12.97B, +0,6% YoY
• ▍Operating income +1,1% YoY
• ▍Net income +55,9% YoY
• ▍Net margin 6.6%

Revenue ¥12.30B; Operating income ¥983.0M.

• ▍Revenue ¥12.30B
• ▍Operating income ¥983.0M
• ▍Net margin 6.5%

Revenue ¥13.20B; Operating income ¥1.46B.

• ▍Revenue ¥13.20B
• ▍Operating income ¥1.46B
• ▍Net margin 7.1%

Revenue ¥12.74B; Operating income ¥1.28B.

• ▍Revenue ¥12.74B
• ▍Operating income ¥1.28B
• ▍Net margin 6.1%

Revenue ¥12.90B; Operating income ¥1.31B.

• ▍Revenue ¥12.90B
• ▍Operating income ¥1.31B
• ▍Net margin 4.3%

Revenue ¥50.30B, −1,6% YoY; Operating income −12,5% YoY.

• ▍Revenue ¥50.30B, −1,6% YoY
• ▍Operating income −12,5% YoY
• ▍Net income −9,7% YoY
• ▍Free cash flow −98,1% YoY
• ▍Net margin 5.5%

Revenue ¥51.14B, +3,7% YoY; Operating income −7,7% YoY.

• ▍Revenue ¥51.14B, +3,7% YoY
• ▍Operating income −7,7% YoY
• ▍Net income −14,0% YoY
• ▍Free cash flow −141,2% YoY
• ▍Net margin 6.0%

Revenue ¥49.30B, +3,6% YoY; Operating income +0,3% YoY.

• ▍Revenue ¥49.30B, +3,6% YoY
• ▍Operating income +0,3% YoY
• ▍Net income +0,2% YoY
• ▍Free cash flow −23,0% YoY
• ▍Net margin 7.2%

Revenue ¥47.60B, +1,6% YoY; Operating income −13,7% YoY.

• ▍Revenue ¥47.60B, +1,6% YoY
• ▍Operating income −13,7% YoY
• ▍Net income −15,1% YoY
• ▍Free cash flow +214,9% YoY
• ▍Net margin 7.4%