7940.T(7940.T)

$1057.00—

Chart

7940.T(7940.T)

JPX

$1057.00—

Chart Studio

7940.T(7940.T)

7940.T

Overview Fair Value Stream Notebook Intel Chart History Fundamentals TTM Earnings Analysts News Financials Segments Insiders Institl.DCF Peers

8/19/26

WAVELOCK (7940.T)

Wednesday

5:13 PM

Thesis: The recent decline in net income and revenue growth, coupled with rising raw material costs, has led to concerns about margin sustainability and competitive positioning.

Revenue Outlook

Metric	FY2024	FY2025
Revenue	$25.6B	$25.1B
Rev. Growth	+8.5%	-1.7%
EPS	$61.70	$35.78
EPS Growth	+14.0%	-42.0%
P/E	17.1×	29.5×

What Could Go Wrong

1Recent increases in raw material prices have not yet been fully passed on to customers, indicating potential margin compression ahead.
2Emerging competition from low-cost producers in Southeast Asia could pressure pricing and market share.
3Regulatory changes that could impose stricter environmental standards on chemical production
4Technological disruption from alternative materials or processes
5Intensifying competition from low-cost producers in emerging markets
6Potential loss of market share to innovative startups in specialty chemicals
7Low net margins (1.2%) could limit financial flexibility in downturns
8High capital expenditure requirements may strain cash flow

FY2025 Snapshot

Revenue: $25.1B
Rev. Growth: -1.7%
Gross Margin: 22.9%
Op. Margin: 1.8%
Net Margin: 1.2%
Net Income: $302M
NI Growth: -42.0%
EPS: $35.78
1Y Return: +82.9%

7940.T Chart

My Notes

"Management highlighted the need to adapt to rising costs and competitive pressures in the latest market commentary."
Moat: Wavelock's competitive advantage lies in its proprietary technologies and strong customer relationships…
Watch: The rise of low-cost chemical producers in Asia poses a significant threat to Wavelock's market share and pricing power.
value - Investors may be drawn to the stock's low valuation metrics (P/S of 0.4x) relative to its revenue potential.
Rising interest rates can increase financing costs for capital expenditures, potentially impacting growth initiatives and valuation…
Watch on earnings: Brent crude spot price, Industrial Production Index (INDPRO), Consumer Sentiment (UMCSENT).

One Sentence Summary:

The bear case: recent increases in raw material prices have not yet been fully passed on to customers, indicating potential margin compression ahead.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Writing up the research note…

First read for a new ticker takes about 20–30 seconds while we build the analysis from the latest fundamentals, estimates, and intelligence. It's saved after this, so future visits are instant.

Explore More

S&P 500 Screener

Filter and sort all 500 stocks

Market Movers

Today's biggest gainers and losers

Market Heatmap

Visual sector performance

Metric

FY2024

FY2025

P/E

17.1×

29.5×

What Could Go Wrong

1Recent increases in raw material prices have not yet been fully passed on to customers, indicating potential margin compression ahead.

2Emerging competition from low-cost producers in Southeast Asia could pressure pricing and market share.

3Regulatory changes that could impose stricter environmental standards on chemical production

4Technological disruption from alternative materials or processes

5Intensifying competition from low-cost producers in emerging markets

6Potential loss of market share to innovative startups in specialty chemicals

7Low net margins (1.2%) could limit financial flexibility in downturns

8High capital expenditure requirements may strain cash flow

My Notes

"Management highlighted the need to adapt to rising costs and competitive pressures in the latest market commentary."

Moat: Wavelock's competitive advantage lies in its proprietary technologies and strong customer relationships…

Watch: The rise of low-cost chemical producers in Asia poses a significant threat to Wavelock's market share and pricing power.

value - Investors may be drawn to the stock's low valuation metrics (P/S of 0.4x) relative to its revenue potential.

Rising interest rates can increase financing costs for capital expenditures, potentially impacting growth initiatives and valuation…

Watch on earnings: Brent crude spot price, Industrial Production Index (INDPRO), Consumer Sentiment (UMCSENT).