Wellnet Corporation (2428) AI Stock Analysis

• Market Cap: ¥14.29B
• Dividend Yield: 2.92%
• Average Volume (3M): 114.77K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.80
• Revenue Growth: 10.87%
• EPS Growth: 49.45%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 59.00
• Shares Outstanding: 19,400,000
• 10 Day Avg. Volume: 109,990
• 30 Day Avg. Volume: 114,773
• PEG Ratio: 0.93
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.75
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• 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 Business Overview & Revenue Model

Company Description

Wellnet 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 Money

Wellnet 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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
10.83B	10.13B	9.42B	8.95B	8.84B	9.38B
	Gross Profit
2.35B	2.14B	1.85B	1.47B	1.33B	1.62B
	EBIT
1.45B	1.22B	939.33M	735.89M	567.52M	817.40M
	EBITDA
1.72B	1.54B	1.42B	1.23B	933.96M	1.19B
	Net Income Common Stockholders
1.03B	836.79M	635.50M	532.23M	393.92M	494.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.21B	16.66B	14.07B	13.13B	10.50B	8.69B
	Total Assets
35.84B	27.14B	24.89B	23.64B	21.26B	20.07B
	Total Debt
1.68B	1.73B	1.80B	1.90B	2.00B	740.00M
	Net Debt
-1.49B	-14.93B	-12.27B	-11.23B	-8.50B	-7.95B
	Total Liabilities
27.53B	18.76B	17.07B	16.23B	14.08B	13.06B
	Stockholders Equity
8.31B	8.38B	7.83B	7.41B	7.18B	7.01B
Cash Flow		Free Cash Flow
8.35B	2.63B	890.90M	2.99B	945.13M	-2.96B
	Operating Cash Flow
8.39B	2.64B	1.11B	3.28B	2.60B	-1.83B
	Investing Cash Flow
-1.12B	333.89M	268.39M	-267.19M	-1.80B	-1.20B
	Financing Cash Flow
-709.56M	-392.22M	-360.99M	-390.77M	1.01B	-196.93M

Wellnet Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 750.00
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4430	79 Outperform	¥7.77B	9.05		3.29%	18.10%	17.97%
3623	78 Outperform	¥6.80B	16.73		1.12%	11.52%	35.61%
2428	76 Outperform	¥14.29B	12.86		2.92%	10.87%	49.45%
4374	76 Outperform	¥9.19B	25.59		0.58%	24.77%	116.47%
3633	73 Outperform	¥8.37B	12.38		3.35%	1.91%	―
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%

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.