Wellnet Corporation (2428) AI Stock Analysis

• Market Cap: ¥11.93B
• Dividend Yield: 4.39%
• Average Volume (3M): 93.54K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.85
• Revenue Growth: 0.54%
• EPS Growth: 9.99%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 13.58
• Shares Outstanding: 19,400,000
• 10 Day Avg. Volume: 111,510
• 30 Day Avg. Volume: 93,543
• PEG Ratio: 0.42
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 5.94
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥711.00 ▲(3.49% Upside)

Wellnet Corporation's overall stock score is primarily driven by its strong financial performance and attractive valuation. However, the bearish technical indicators and recent decline in free cash flow growth pose significant risks. The stock's low P/E ratio and high dividend yield offer potential value, but the current market momentum suggests caution.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates successful market penetration and product adoption, enhancing its competitive position in the electronic payment solutions sector.

Profitability Metrics

Enhanced profitability metrics reflect effective cost management and operational efficiency, which support long-term financial stability and shareholder value.

Balance Sheet Health

A low leverage ratio indicates financial prudence and stability, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Free Cash Flow Decline

The decline in free cash flow growth could constrain the company's ability to fund new projects or return capital to shareholders, potentially impacting long-term growth prospects.

Equity Utilization

Moderate reliance on equity financing may limit the company's ability to leverage growth opportunities without diluting shareholder value, indicating a need for optimization.

Cash Flow Position

While operating cash flow remains strong, the decline in free cash flow growth could signal potential liquidity challenges, affecting the company's capacity to invest in strategic initiatives.

Wellnet Corporation Business Overview & Revenue Model

Company Description

Wellnet Corporation (2428) is a leading company in the healthcare technology sector, specializing in innovative healthcare solutions and services that enhance patient care and streamline healthcare operations. The company focuses on developing software applications and platforms that facilitate the management of electronic health records (EHR), telemedicine, and patient engagement. Wellnet serves a diverse range of clients, including hospitals, clinics, and healthcare providers, aiming to improve healthcare delivery through technology integration and data analytics.

How the Company Makes Money

Wellnet Corporation generates revenue primarily through the sale of its software solutions and EHR systems, which are offered as subscriptions or licensing agreements to healthcare institutions. Key revenue streams include recurring subscription fees from cloud-based services, one-time fees from software installations, and ongoing maintenance and support services. Additionally, Wellnet has established strategic partnerships with healthcare organizations and technology firms, allowing for collaborative projects that enhance its product offerings and expand its market reach. The company's focus on continuous innovation and the increasing demand for digital healthcare solutions contribute significantly to its earnings.

Wellnet Corporation Financial Statement Overview

Summary

Wellnet Corporation exhibits strong financial health with robust revenue growth and improving profitability metrics. The balance sheet is stable with low leverage, although there is room for optimizing equity utilization. The cash flow position is generally strong, but the recent decline in free cash flow growth warrants attention.

Income Statement

Wellnet Corporation has demonstrated strong revenue growth with a 19.2% increase in the latest year, supported by improving gross and net profit margins. The EBIT and EBITDA margins have also shown consistent improvement, indicating efficient cost management and operational effectiveness. The company's ability to maintain a positive trajectory in revenue and profitability metrics is a significant strength.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.18, indicating low leverage. The return on equity has improved to 12.16%, showcasing effective use of shareholder funds. However, the equity ratio of 30.23% suggests moderate reliance on equity financing, which could be optimized further.

Cash Flow

The cash flow statement shows a significant decline in free cash flow growth, which dropped by 72.97% in the latest year. Despite this, the operating cash flow to net income ratio remains strong, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also healthy, but the recent decline in free cash flow growth poses a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.94B	10.92B	10.13B	9.42B	8.95B	8.84B
Gross Profit	2.54B	2.48B	2.14B	1.85B	1.47B	1.33B
EBITDA	1.93B	1.92B	1.54B	1.42B	1.23B	1.04B
Net Income	1.09B	1.08B	836.79M	635.50M	532.23M	393.92M
Balance Sheet
Total Assets	29.30B	29.30B	27.14B	24.89B	23.64B	21.26B
Cash, Cash Equivalents and Short-Term Investments	17.50B	17.50B	16.66B	14.07B	13.13B	10.50B
Total Debt	1.60B	1.60B	1.73B	1.80B	1.90B	2.00B
Total Liabilities	20.44B	20.44B	18.76B	17.07B	16.23B	14.08B
Stockholders Equity	8.86B	8.86B	8.38B	7.83B	7.41B	7.18B
Cash Flow
Free Cash Flow	8.35B	2.26B	2.63B	890.90M	2.99B	945.13M
Operating Cash Flow	8.39B	2.41B	2.64B	1.11B	3.28B	2.60B
Investing Cash Flow	-1.12B	-831.20M	333.89M	268.39M	-267.19M	-1.80B
Financing Cash Flow	-709.56M	-737.01M	-392.22M	-360.99M	-390.77M	1.01B

Wellnet Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 687.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 687 is above the 20-day moving average (MA) of 644.15, above the 50-day MA of 664.02, and below the 200-day MA of 701.31, indicating a bearish trend. The MACD of -7.48 indicates Negative momentum. The RSI at 41.37 is Neutral, neither overbought nor oversold. The STOCH value of 42.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥6.27B	15.81	―	1.22%	6.95%	-9.62%
4374	76 Outperform	¥11.60B	23.30	―	0.45%	19.35%	71.74%
3633	76 Outperform	¥12.01B	14.78	―	2.37%	2.75%	25.24%
4430	71 Outperform	¥8.60B	9.37	―	3.15%	27.08%	18.85%
2428	69 Neutral	¥11.93B	11.42	―	4.39%	0.54%	9.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Wellnet Corporation Corporate Events

Wellnet Corporation Reports Decline in Quarterly Financial Performance

Wellnet Corporation reported a decline in financial performance for the three months ending September 30, 2025, with net sales and profits decreasing compared to the previous year. Despite the downturn, the company maintains its financial forecast for the fiscal year ending June 30, 2026, indicating a slight growth in net sales and profits, suggesting a cautious optimism about future performance.