WHY HOW DO COMPANY,Inc. (3823) AI Stock Analysis

• Market Cap: ¥6.45B
• Dividend Yield: N/A
• Average Volume (3M): 4.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 99.79%
• EPS Growth: 7.36%
• Country: JP
• Employees: 31
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 0.40
• Shares Outstanding: 104,020,690
• 10 Day Avg. Volume: 3,684,100
• 30 Day Avg. Volume: 4,515,930
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥80.00
• Price Target Upside: 29.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: ¥79.00 ▲(27.42% Upside)

The overall stock score is primarily driven by significant financial challenges, including declining revenues and persistent losses. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. These factors collectively suggest a high-risk investment with limited upside potential.

WHY HOW DO COMPANY,Inc. Business Overview & Revenue Model

Company Description

WHY HOW DO COMPANY, Inc. (3823) is an innovative firm specializing in providing consulting and technology solutions across various sectors, including education, healthcare, and corporate training. The company focuses on enhancing operational efficiencies through its core services, which include strategic consulting, software development, and digital transformation initiatives. With a commitment to leveraging technology to solve complex business challenges, WHY HOW DO COMPANY aims to empower organizations to achieve their goals more effectively.

How the Company Makes Money

WHY HOW DO COMPANY generates revenue primarily through a diversified model that includes fees for consulting services, software licensing, and subscription-based digital solutions. Key revenue streams include project-based consulting contracts with businesses seeking to improve their operational frameworks, ongoing support and maintenance agreements for their developed software products, and recurring revenue from subscriptions to their digital training platforms. Additionally, strategic partnerships with technology providers and educational institutions bolster the company's offerings, allowing for co-developed solutions that can be marketed to a broader audience, thus enhancing overall profitability.

WHY HOW DO COMPANY,Inc. Financial Statement Overview

Summary

WHY HOW DO COMPANY, Inc. is facing significant financial challenges, including declining revenues, persistent losses, and severe cash conversion issues. The company has a manageable debt-to-equity ratio but is struggling with negative returns on equity and negative free cash flow.

Income Statement

The income statement reflects a challenging financial position for WHY HOW DO COMPANY, Inc. with declining revenues from 2019 to 2024. The gross profit margin has decreased from 42.5% in 2019 to 46.4% in 2024, indicating inefficiencies in cost management. Net profit margins are negative, with a steep decline in net income from 2020 onwards, suggesting ongoing operational challenges. The EBIT and EBITDA margins are also significantly negative, highlighting issues in operational profitability.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.61 in 2024, indicating manageable leverage. However, the company's equity ratio has decreased to 49.5% in 2024 from 75% in 2019, reflecting a diminished proportion of equity financing. Return on equity is negative due to consistent net losses, pointing to challenges in generating shareholder value.

Cash Flow

The cash flow statement reveals that WHY HOW DO COMPANY, Inc. is struggling with negative free cash flow, which worsened from -$3 million in 2019 to -$785 million in 2024. The operating cash flow to net income ratio is negative, suggesting that the company is not effectively converting its income into cash. Additionally, the free cash flow to net income ratio is also negative, highlighting the company's difficulty in generating cash from its operations.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	747.64M	941.14M	919.08M	901.53M	1.15B
Gross Profit	354.64M	319.08M	368.82M	53.58M	295.36M
EBITDA	-934.40M	-298.24M	-324.29M	-227.22M	-830.79M
Net Income	-961.64M	-347.53M	-403.28M	-581.02M	-1.05B
Balance Sheet
Total Assets	1.53B	1.35B	1.67B	1.41B	1.62B
Cash, Cash Equivalents and Short-Term Investments	595.68M	520.03M	1.10B	736.31M	591.48M
Total Debt	460.83M	337.21M	416.48M	519.24M	459.80M
Total Liabilities	757.41M	541.28M	567.15M	657.62M	651.91M
Stockholders Equity	760.00M	758.60M	1.10B	748.00M	971.67M
Cash Flow
Free Cash Flow	-785.10M	-421.58M	-171.90M	-336.38M	-355.37M
Operating Cash Flow	-54.45M	-370.73M	-139.30M	-315.09M	-199.56M
Investing Cash Flow	-772.05M	-125.66M	-135.18M	46.05M	-265.69M
Financing Cash Flow	902.01M	-91.98M	616.20M	409.36M	602.51M

WHY HOW DO COMPANY,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3823, the sentiment is Negative. The current price of 62 is below the 20-day moving average (MA) of 77.40, below the 50-day MA of 98.72, and below the 200-day MA of 79.16, indicating a bearish trend. The MACD of -10.22 indicates Positive momentum. The RSI at 24.32 is Positive, neither overbought nor oversold. The STOCH value of 7.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3823.

WHY HOW DO COMPANY,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3937	84 Outperform	¥13.46B	14.30		3.64%	2.47%	46.51%
2169	75 Outperform	¥11.96B	13.08		4.05%	4.05%	-0.90%
4011	67 Neutral	¥14.57B	122.13		―	21.37%	33.73%
4015	66 Neutral	¥11.80B	43.60		―	62.19%	40.77%
4382	51 Neutral	¥17.03B	―		―	22.47%	84.35%
Sector *	50 Neutral	AU$1.63B	3.39	-0.63%	3.31%	16.47%	-4.12%
3823	38 Underperform	¥6.45B	―		―	99.79%	7.36%