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WHY HOW DO COMPANY,Inc. (JP:3823)
:3823
Japanese Market

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

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JP:3823

WHY HOW DO COMPANY,Inc.

(3823)

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Neutral 43 (OpenAI - 5.2)
Rating:43Neutral
Price Target:
¥45.00
▼(-11.76% Downside)
Action:ReiteratedDate:03/24/26
The score is constrained mainly by weak financial performance—ongoing losses and negative cash flow despite improving 2025 revenue and margins. Technicals add further pressure as the stock trades below major moving averages with negative MACD. Valuation is also limited by a negative P/E, reflecting unprofitable operations.
Positive Factors
Revenue rebound
An ~18% top-line rebound in 2025 signals restored demand and improving product-market fit. Durable revenue recovery increases the runway to absorb fixed costs and supports scaling initiatives, raising the probability the company can leverage growth into sustainable operating improvements.
Negative Factors
Deep operating losses
An EBIT margin near -44% shows the core business still loses significant cash at scale. Persistent annual net losses indicate the company has not yet found a profitable operating model; continued structural losses will erode capital and require external support absent a durable margin turnaround.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
An ~18% top-line rebound in 2025 signals restored demand and improving product-market fit. Durable revenue recovery increases the runway to absorb fixed costs and supports scaling initiatives, raising the probability the company can leverage growth into sustainable operating improvements.
Read all positive factors

WHY HOW DO COMPANY,Inc. (3823) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
THE WHY HOW DO COMPANY, Inc. provides services and solutions for smartphones in Japan. The company offers IoT services, including i ball technical shot, I ball technical pitch, and IoT system for intercoms; games, such as Boku-J, Soccer Japan Nati...

WHY HOW DO COMPANY,Inc. Financial Statement Overview

Summary
Despite a strong 2025 revenue rebound (~18% YoY) and improved gross margin (~51%), the business remains structurally weak with deeply negative operating profitability (EBIT margin around -44%) and persistent net losses. Cash flow is also a key concern with ongoing negative operating and free cash flow, partially offset by an improved leverage profile (debt-to-equity ~0.22 in 2025).
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
BreakdownAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue1.75B747.64M941.14M919.08M901.53M
Gross Profit889.88M352.50M314.82M334.49M3.29M
EBITDA-732.39M-276.82M-252.34M-113.81M-361.57M
Net Income-69.04M-961.64M-347.53M-403.28M-581.02M
Balance Sheet
Total Assets2.47B1.53B1.35B1.67B1.41B
Cash, Cash Equivalents and Short-Term Investments1.25B595.68M520.03M1.10B736.31M
Total Debt335.41M460.83M337.21M416.48M519.24M
Total Liabilities895.31M757.41M541.28M567.15M657.62M
Stockholders Equity1.55B760.00M758.60M1.10B748.00M
Cash Flow
Free Cash Flow-113.30M-785.10M-396.54M-141.23M-318.27M
Operating Cash Flow-64.48M-54.45M-370.73M-139.30M-315.09M
Investing Cash Flow-24.15M-772.05M-80.66M-135.18M46.05M
Financing Cash Flow740.41M902.01M-136.98M616.20M409.36M

WHY HOW DO COMPANY,Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price51.00
Price Trends
50DMA
53.92
Negative
100DMA
53.07
Negative
200DMA
66.78
Negative
Market Momentum
MACD
-2.56
Positive
RSI
42.56
Neutral
STOCH
28.57
Neutral
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 51 is above the 20-day moving average (MA) of 48.85, below the 50-day MA of 53.92, and below the 200-day MA of 66.78, indicating a bearish trend. The MACD of -2.56 indicates Positive momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥9.75B14.614.24%2.08%25.42%
67
Neutral
¥9.44B11.670.70%9.78%-23.98%
66
Neutral
¥11.13B25.641.51%8.65%12.86%
65
Neutral
¥9.79B7.531.20%12.21%6.86%
63
Neutral
¥5.18B9.172.28%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
43
Neutral
¥6.05B-12.80134.28%94.74%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3823
WHY HOW DO COMPANY,Inc.
46.00
-49.00
-51.58%
JP:3804
System D Inc.
1,739.00
208.60
13.63%
JP:3826
System Integrator Corp.
470.00
142.14
43.35%
JP:4168
Yappli, Inc.
727.00
136.48
23.11%
JP:5244
jig.jp co.,ltd.
230.00
12.84
5.91%
JP:9698
Creo Co., Ltd.
1,200.00
247.89
26.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 24, 2026