Wellnet Corporation (2428) AI Stock Analysis

• Market Cap: ¥13.68B
• Dividend Yield: 3.86%
• Average Volume (3M): 124.52K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.80
• Revenue Growth: 7.76%
• EPS Growth: 30.00%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 8.77
• Shares Outstanding: 19,400,000
• 10 Day Avg. Volume: 83,210
• 30 Day Avg. Volume: 124,516
• 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: ¥819.00
• Price Target Upside: 12.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥819.00 ▲(12.65% Upside)

Wellnet Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust revenue growth and profitability metrics, along with a stable balance sheet, are significant strengths. However, technical indicators suggest short-term bearish sentiment, which slightly offsets the positive financial and valuation aspects.

Wellnet Corporation Business Overview & Revenue Model

Company Description

Wellnet Corporation provides payment settlement, electronic billing, and electronic payment services in Japan. The company also develops and provides mobile authentication solutions, as well as offers multi payment and remittance services. In addition, it provides payment secretary, a smartphone app for making payments directly from bank account; Bus Mori!, a service to buy highway bus tickets; and Bus Mori! MONTA, a real-time seat reservation management system for bus operators. The company was incorporated in 1983 and is headquartered in Tokyo, Japan.

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: Negative
• Last Price: 727.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 727 is below the 20-day moving average (MA) of 738.95, below the 50-day MA of 740.98, and below the 200-day MA of 731.45, indicating a bearish trend. The MACD of -5.74 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 39.74 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
4430	81 Outperform	¥7.91B	9.45	13.43%	3.42%	22.22%	10.20%
3623	78 Outperform	¥7.26B	18.70	―	1.05%	7.69%	-6.56%
4374	76 Outperform	¥12.61B	28.71	―	0.42%	21.21%	82.61%
2428	74 Outperform	¥13.68B	12.63	―	3.86%	7.76%	30.00%
3633	71 Outperform	¥10.84B	16.22	24.76%	2.59%	3.28%	13.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Wellnet Corporation Corporate Events

Wellnet Corporation Unveils Ambitious Five-Year Plan to Drive Japan’s Digital Transformation

Wellnet Corporation has announced a new five-year management plan titled ‘Think Wild,’ aimed at enhancing its role in Japan’s digital transformation. The plan focuses on maximizing revenue from existing services, promoting e-money solutions, expanding value-added payment services, and enhancing productivity through AI. Additionally, the company aims to double its profit scale by 2030, while contributing to regional and social causes such as supporting technical colleges and promoting winter sports.

Wellnet Corporation Reports Strong Fiscal Year 2025 Results

Wellnet Corporation reported a strong financial performance for the fiscal year ended June 30, 2025, with significant increases in net sales, operating profit, and ordinary profit compared to the previous year. The company also announced an increase in dividends, reflecting its robust financial health and commitment to rewarding shareholders. Despite a forecasted decline in the first half of the next fiscal year, Wellnet projects overall growth for the full year, indicating a positive outlook for its operations and market positioning.