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Wellnet Corporation (JP:2428)
:2428
Japanese Market

Wellnet Corporation (2428) AI Stock Analysis

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JP

Wellnet Corporation

(2428)

Rating:76Outperform
Price Target:
¥803.00
▲(7.07%Upside)
Wellnet Corporation's strong financial performance is the primary driver of its favorable stock score, supported by robust revenue growth and efficient cash management. The company's reasonable valuation further enhances its attractiveness, though technical analysis suggests caution in the longer term.

Wellnet Corporation (2428) vs. iShares MSCI Japan ETF (EWJ)

Wellnet Corporation Business Overview & Revenue Model

Company DescriptionWellnet Corporation (2428) is a Japanese company that specializes in offering a variety of payment and financial transaction services. The company operates in the financial technology sector and provides solutions that facilitate electronic payments and transactions, primarily through its platform which connects consumers and businesses. Wellnet's core products include electronic billing, payment processing, and settlement services, which cater to a diverse range of industries including retail, utilities, and transportation.
How the Company Makes MoneyWellnet Corporation generates revenue primarily through fees associated with its payment processing and transaction services. The company earns money by charging businesses for the use of its electronic billing platforms and transaction settlement solutions. These fees can be based on a per-transaction basis or monthly subscriptions depending on the volume and nature of the services used. Additionally, Wellnet benefits from strategic partnerships with financial institutions and retail companies, which expand its reach and customer base, contributing to its overall earnings. The company's revenue streams are strengthened by its ability to innovate and offer secure, reliable payment solutions that meet the evolving needs of its clients.

Wellnet Corporation Financial Statement Overview

Summary
Wellnet Corporation demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet reflects a low-risk financial structure with low leverage and solid equity deployment. Cash flow performance is robust, marked by significant cash generation and growth.
Income Statement
85
Very Positive
The company shows strong financial performance with consistent revenue growth, as evidenced by a significant increase in Total Revenue from 9,424 million Yen in 2023 to 10,850 million Yen in TTM. The Gross Profit Margin is healthy at 21.89%, and the Net Profit Margin is robust at 9.47%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also strong at 13.33% and 15.87% respectively, reflecting effective operational efficiency.
Balance Sheet
80
Positive
The balance sheet is solid with a low Debt-to-Equity Ratio of 0.20, indicating a conservative leverage approach. The Return on Equity (ROE) is impressive at 12.37%, demonstrating effective use of equity to generate profits. The Equity Ratio is 23.17%, suggesting a stable financial structure with a reasonable proportion of equity in the asset base.
Cash Flow
78
Positive
The company exhibits strong cash flow management, with a positive Free Cash Flow of 8,349 million Yen in TTM, reflecting a significant growth from previous periods. The Operating Cash Flow to Net Income Ratio is 8.16, indicating strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is 8.12, highlighting efficient cash utilization.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
10.83B10.13B9.42B8.95B8.84B9.38B
Gross Profit
2.35B2.14B1.85B1.47B1.33B1.62B
EBIT
1.45B1.22B939.33M735.89M567.52M817.40M
EBITDA
1.72B1.54B1.42B1.23B933.96M1.19B
Net Income Common Stockholders
1.03B836.79M635.50M532.23M393.92M494.41M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.21B16.66B14.07B13.13B10.50B8.69B
Total Assets
35.84B27.14B24.89B23.64B21.26B20.07B
Total Debt
1.68B1.73B1.80B1.90B2.00B740.00M
Net Debt
-1.49B-14.93B-12.27B-11.23B-8.50B-7.95B
Total Liabilities
27.53B18.76B17.07B16.23B14.08B13.06B
Stockholders Equity
8.31B8.38B7.83B7.41B7.18B7.01B
Cash FlowFree Cash Flow
8.35B2.63B890.90M2.99B945.13M-2.96B
Operating Cash Flow
8.39B2.64B1.11B3.28B2.60B-1.83B
Investing Cash Flow
-1.12B333.89M268.39M-267.19M-1.80B-1.20B
Financing Cash Flow
-709.56M-392.22M-360.99M-390.77M1.01B-196.93M

Wellnet Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price750.00
Price Trends
50DMA
713.96
Positive
100DMA
741.85
Positive
200DMA
778.06
Negative
Market Momentum
MACD
11.58
Negative
RSI
58.56
Neutral
STOCH
48.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2428, the sentiment is Neutral. The current price of 750 is above the 20-day moving average (MA) of 736.50, above the 50-day MA of 713.96, and below the 200-day MA of 778.06, indicating a neutral trend. The MACD of 11.58 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2428.

Wellnet Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥7.77B9.05
3.29%18.10%17.97%
78
Outperform
¥6.80B16.73
1.12%11.52%35.61%
76
Outperform
¥14.29B12.86
2.92%10.87%49.45%
76
Outperform
¥9.19B25.59
0.58%24.77%116.47%
73
Outperform
¥8.37B12.38
3.35%1.91%
62
Neutral
$11.92B10.48-7.50%2.95%7.40%-8.18%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2428
Wellnet Corporation
750.00
145.12
23.99%
JP:3623
Billing System Corporation
1,058.00
65.40
6.59%
JP:3633
GMO Pepabo, Inc.
1,611.00
198.76
14.07%
JP:4374
ROBOT PAYMENT INC.
2,465.00
385.27
18.53%
JP:4430
TOKAI SOFT CO.,LTD.
1,535.00
276.96
22.02%

Wellnet Corporation Corporate Events

Wellnet Corporation Reports Strong Financial Growth and Positive Outlook
May 1, 2025

Wellnet Corporation reported significant growth in its financial performance for the nine months ending March 31, 2025, with net sales increasing by 9.9% and ordinary profit rising by 54% compared to the previous year. The company has revised its financial and dividend forecasts upward, indicating a positive outlook for the fiscal year ending June 30, 2025, which suggests strong operational performance and potential benefits for stakeholders.

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.