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

• Market Cap: ¥10.82B
• Dividend Yield: N/A
• Average Volume (3M): 10.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 45.82%
• EPS Growth: -6.97%
• Country: JP
• Employees: 31
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): -11.59
• Shares Outstanding: 104,020,690
• 10 Day Avg. Volume: 4,416,140
• 30 Day Avg. Volume: 10,530,066
• PEG Ratio: 0.44
• Price to Book (P/B): 4.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.49
• 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: 45 Neutral
• Price Target: ¥101.00 ▼(-0.98%Downside)

The most significant factors impacting the overall score are the company's challenging financial performance and weak valuation. The technical analysis also indicates bearish trends, which further impacts the score negatively. The lack of earnings call data and corporate events results in no mitigating factors to improve the overall score.

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

Company Description

WHY HOW DO COMPANY, Inc. (3823) is a dynamic enterprise operating in the technology and consulting sectors. The company specializes in providing innovative solutions and strategic insights to businesses looking to optimize their operations and leverage cutting-edge technologies. Its core services include digital transformation consulting, data analytics, and custom software development, aimed at enhancing client efficiency and competitive advantage.

How the Company Makes Money

The company generates revenue primarily through service fees charged for its consulting and technology solutions. Key revenue streams include project-based consulting fees, subscription models for ongoing data analytics and support services, and licensing fees for custom software solutions. Significant partnerships with technology providers and industry leaders enhance the company's service offerings, allowing it to capture a diverse client base across various industries. Additionally, the company benefits from recurring revenue through long-term contracts and strategic alliances with major corporations.

WHY HOW DO COMPANY,Inc. Financial Statement Overview

Summary

The company is facing significant financial difficulties, with declining revenues and persistent losses reflected in the income statement. The balance sheet shows moderate leverage but weakening equity and negative returns on equity. Cash flow issues are severe, with negative free cash flow and ineffective cash conversion from income.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	968.66M	747.64M	941.14M	919.08M	901.53M	1.15B
Gross Profit	471.53M	354.64M	319.08M	368.82M	53.58M	295.36M
EBITDA	-864.16M	-934.40M	-298.24M	-324.29M	-227.22M	-830.79M
Net Income	-939.27M	-961.64M	-347.53M	-403.28M	-581.02M	-1.05B
Balance Sheet
Total Assets	1.82B	1.53B	1.35B	1.67B	1.41B	1.62B
Cash, Cash Equivalents and Short-Term Investments	733.00M	595.68M	520.03M	1.10B	736.31M	591.48M
Total Debt	564.00M	460.83M	337.21M	416.48M	519.24M	459.80M
Total Liabilities	918.00M	757.41M	541.28M	567.15M	657.62M	651.91M
Stockholders Equity	884.00M	760.00M	758.60M	1.10B	748.00M	971.67M
Cash Flow
Free Cash Flow	0.00	-785.10M	-421.58M	-171.90M	-336.38M	-355.37M
Operating Cash Flow	0.00	-54.45M	-370.73M	-139.30M	-315.09M	-199.56M
Investing Cash Flow	0.00	-772.05M	-125.66M	-135.18M	46.05M	-265.69M
Financing Cash Flow	0.00	902.01M	-91.98M	616.20M	409.36M	602.51M

WHY HOW DO COMPANY,Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 102.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3823, the sentiment is Neutral. The current price of 102 is below the 20-day moving average (MA) of 112.50, below the 50-day MA of 114.74, and above the 200-day MA of 71.13, indicating a neutral trend. The MACD of -5.36 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4015	78 Outperform	¥13.82B	45.46		―	130.32%	215.53%
3937	69 Neutral	¥11.44B	13.13		4.32%	6.70%	59.13%
2169	67 Neutral	¥11.94B	12.35		4.23%	5.96%	-1.58%
4011	67 Neutral	¥14.59B	88.21		―	25.52%	282.24%
Sector *	56 Neutral	$7.08B	5.28	-5.20%	5.56%	8.18%	-38.45%
4382	47 Neutral	¥16.52B	―		―	17.40%	59.85%
3823	45 Neutral	¥10.82B	―		―	45.82%	-6.97%