Wellnet Corporation (2428) AI Stock Analysis

• Market Cap: ¥13.44B
• Dividend Yield: 3.92%
• Average Volume (3M): 165.36K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.80
• Revenue Growth: 10.87%
• EPS Growth: 49.45%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Infrastructure
• EPS (TTM): 18.66
• Shares Outstanding: 19,400,000
• 10 Day Avg. Volume: 142,500
• 30 Day Avg. Volume: 165,363
• PEG Ratio: 1.30
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.61
• 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: ¥852.00
• Price Target Upside: 19.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥799.00 ▲(11.75%Upside)

Wellnet Corporation has a solid overall score, primarily driven by strong financial performance characterized by revenue growth and profitability. The stock's valuation is attractive, and it offers a good dividend yield. However, technical analysis shows mixed signals, which suggests caution in the short term.

Wellnet Corporation Business Overview & Revenue Model

Company Description

Wellnet Corporation (2428) is a Japanese company operating in the technology and financial services sectors. The company specializes in providing electronic payment solutions, focusing on online billing and payment systems. Wellnet's core services include electronic billing, mobile payment solutions, and online transaction processing, which cater to various industries such as retail, utilities, and telecommunications.

How the Company Makes Money

Wellnet Corporation generates revenue primarily through transaction fees associated with its electronic payment solutions. The company charges fees for processing payments and providing billing services, which form a significant part of its income. Wellnet collaborates with businesses across different sectors, enabling them to offer seamless payment experiences to their customers. The company also benefits from strategic partnerships with financial institutions and technology providers, helping to expand its service offerings and customer base.

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

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

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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.13B	9.42B	8.95B	8.84B	9.38B
Gross Profit	2.14B	1.85B	1.47B	1.33B	1.62B
EBITDA	1.54B	1.42B	1.23B	933.96M	1.19B
Net Income	836.79M	635.50M	532.23M	393.92M	494.41M
Balance Sheet
Total Assets	27.14B	24.89B	23.64B	21.26B	20.07B
Cash, Cash Equivalents and Short-Term Investments	16.66B	14.07B	13.13B	10.50B	8.69B
Total Debt	1.73B	1.80B	1.90B	2.00B	740.00M
Total Liabilities	18.76B	17.07B	16.23B	14.08B	13.06B
Stockholders Equity	8.38B	7.83B	7.41B	7.18B	7.01B
Cash Flow
Free Cash Flow	2.63B	890.90M	2.99B	945.13M	-2.96B
Operating Cash Flow	2.64B	1.11B	3.28B	2.60B	-1.83B
Investing Cash Flow	333.89M	268.39M	-267.19M	-1.80B	-1.20B
Financing Cash Flow	-392.22M	-360.99M	-390.77M	1.01B	-196.93M

Wellnet Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 715.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2428, the sentiment is Positive. The current price of 715 is above the 20-day moving average (MA) of 710.41, above the 50-day MA of 707.47, and below the 200-day MA of 738.05, indicating a neutral trend. The MACD of 1.71 indicates Negative momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2428.

Wellnet Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	78 Outperform	¥6.94B	17.07		1.10%	11.52%	35.61%
4374	76 Outperform	¥9.30B	25.90		0.57%	24.77%	116.47%
2428	74 Outperform	¥13.44B	12.10		3.92%	10.87%	49.45%
4430	74 Outperform	¥7.71B	9.21		3.32%	18.10%	17.97%
3633	71 Outperform	¥8.15B	12.06		3.44%	1.91%	―
Sector *	63 Neutral	$33.80B	5.84	-11.67%	1.84%	5.28%	-18.34%

Wellnet Corporation Corporate Events

Wellnet Corporation Reports Strong Financial Growth and Positive Outlook

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.