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

• Market Cap: ¥8.02B
• Dividend Yield: N/A
• Average Volume (3M): 7.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 99.79%
• EPS Growth: 7.36%
• Country: JP
• Employees: 31
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.40
• Shares Outstanding: 108,420,690
• 10 Day Avg. Volume: 3,819,190
• 30 Day Avg. Volume: 7,136,530
• 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: ¥71.00
• Price Target Upside: -4.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 40 Neutral
• Price Target: ¥71.00 ▼(-4.05% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and persistent losses. Technical analysis indicates a bearish trend with weak momentum, while valuation metrics are unattractive due to negative earnings and lack of dividends.

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

The company is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. The balance sheet shows moderate leverage but declining equity, while cash flow issues highlight operational inefficiencies. These factors contribute to a low financial performance score.

Income Statement

The company has experienced a significant decline in revenue over the past years, with a negative revenue growth rate from 2019 to 2024. Gross profit margins have also decreased, indicating cost management issues. The net profit margin remains negative, reflecting ongoing losses. Both EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is moderate, suggesting manageable leverage levels. However, the return on equity is negative due to consistent net losses, which is a concern. The equity ratio indicates a stable capital structure, but the declining stockholders' equity over the years signals potential financial distress.

Cash Flow

The company has consistently reported negative free cash flow, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. Free cash flow growth is negative, suggesting deteriorating cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	747.64M	941.14M	919.08M	901.53M	1.15B
Gross Profit	575.84M	354.64M	319.08M	368.82M	53.58M	295.36M
EBITDA	-751.71M	-934.40M	-298.24M	-324.29M	-367.55M	-529.84M
Net Income	-854.27M	-961.64M	-347.53M	-403.28M	-581.02M	-1.05B
Balance Sheet
Total Assets	2.61B	1.53B	1.35B	1.67B	1.41B	1.62B
Cash, Cash Equivalents and Short-Term Investments	1.13B	595.68M	520.03M	1.10B	736.31M	591.48M
Total Debt	550.72M	460.83M	337.21M	416.48M	519.24M	459.80M
Total Liabilities	1.16B	757.41M	541.28M	567.15M	657.62M	651.91M
Stockholders Equity	1.42B	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	-80.66M	-135.18M	46.05M	-265.69M
Financing Cash Flow	0.00	902.01M	-136.98M	616.20M	409.36M	602.51M

WHY HOW DO COMPANY,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 74 is below the 20-day moving average (MA) of 74.35, below the 50-day MA of 86.10, and below the 200-day MA of 82.82, indicating a bearish trend. The MACD of -2.15 indicates Negative momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 6.80 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	¥13.62B	14.47		3.60%	2.47%	46.51%
2169	78 Outperform	¥12.28B	13.43		3.95%	4.05%	-0.90%
4011	67 Neutral	¥14.40B	120.70		―	28.99%	-16.50%
4015	66 Neutral	¥10.88B	40.20		―	62.19%	40.77%
Sector *	61 Neutral	$35.55B	8.88	-11.02%	1.87%	8.55%	-8.14%
4382	51 Neutral	¥16.56B	―		―	22.47%	84.35%
3823	40 Neutral	¥8.02B	―		―	99.79%	7.36%