Wellnet Corporation (2428) AI Stock Analysis

• Market Cap: ¥13.93B
• Dividend Yield: 3.78%
• Average Volume (3M): 158.30K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.78
• Revenue Growth: 7.76%
• EPS Growth: 29.95%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 8.77
• Shares Outstanding: 19,400,000
• 10 Day Avg. Volume: 143,430
• 30 Day Avg. Volume: 158,296
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥866.00
• Price Target Upside: 17.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥866.00 ▲(17.03% Upside)

Wellnet Corporation's strong financial performance, characterized by robust revenue growth and improving profitability, is the most significant factor driving the stock score. The technical analysis supports a positive outlook with strong market momentum. The valuation is reasonable, offering a good balance between growth and income potential. The absence of earnings call and corporate events data did not impact the overall score.

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 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	10.90B	10.92B	10.13B	9.42B	8.95B	8.84B
Gross Profit	2.51B	2.48B	2.14B	1.85B	1.47B	1.33B
EBITDA	1.97B	1.92B	1.54B	1.42B	1.23B	1.04B
Net Income	1.12B	1.08B	836.79M	635.50M	532.23M	393.92M
Balance Sheet
Total Assets	27.74B	29.30B	27.14B	24.89B	23.64B	21.26B
Cash, Cash Equivalents and Short-Term Investments	15.36B	17.50B	16.66B	14.07B	13.13B	10.50B
Total Debt	1.63B	1.60B	1.73B	1.80B	1.90B	2.00B
Total Liabilities	19.06B	20.44B	18.76B	17.07B	16.23B	14.08B
Stockholders Equity	8.68B	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: Neutral
• Last Price: 740.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 740 is below the 20-day moving average (MA) of 753.40, above the 50-day MA of 735.06, and above the 200-day MA of 739.57, indicating a neutral trend. The MACD of 5.59 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 28.64 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	81 Outperform	¥7.88B	9.41		3.43%	22.22%	10.20%
2428	78 Outperform	¥13.93B	12.86		3.78%	7.76%	29.95%
3623	78 Outperform	¥7.40B	19.07		1.03%	7.69%	-6.56%
4374	76 Outperform	¥12.82B	29.18		0.42%	21.21%	82.61%
3633	71 Outperform	¥8.95B	13.39		3.13%	3.28%	13.20%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%

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.