tiprankstipranks
Trending News
More News >
Needs Well, Inc. (JP:3992)
:3992
Japanese Market

Needs Well, Inc. (3992) AI Stock Analysis

Compare
1 Followers

Top Page

JP

Needs Well, Inc.

(3992)

Rating:76Outperform
Price Target:
¥631.00
▲(16.85%Upside)
Needs Well, Inc. showcases strong financial health, particularly in growth and profitability, supported by an excellent balance sheet. However, cash flow issues warrant attention. The technical indicators suggest strong momentum but caution due to potential overbought conditions. Valuation is high, which may limit immediate upside in the stock price.

Needs Well, Inc. (3992) vs. iShares MSCI Japan ETF (EWJ)

Needs Well, Inc. Business Overview & Revenue Model

Company DescriptionNeeds Well, Inc. (3992) is a Japanese company that operates in the IT services sector. The company specializes in providing comprehensive business solutions, including system integration, software development, and IT consulting services. It caters to a wide range of industries, offering tailored IT services designed to improve operational efficiency and drive innovation.
How the Company Makes MoneyNeeds Well, Inc. generates revenue primarily through its IT services, which include system integration, custom software development, and consulting. The company partners with various industries such as finance, telecommunications, and manufacturing to develop bespoke IT solutions that meet specific business needs. It earns money by contracting out its services to these industries, often engaging in long-term projects or recurring service agreements. The value-added services offered by Needs Well, Inc., such as maintenance and support, also contribute to its revenue streams.

Needs Well, Inc. Financial Statement Overview

Summary
Strong revenue growth and profitability with robust margins. Excellent balance sheet with minimal leverage risk. However, current cash flow challenges need monitoring.
Income Statement
88
Very Positive
Strong revenue growth with a 43.6% increase from 2022 to 2023, and a continued rise to 2024. The TTM gross profit margin stands at 22.6%, with a net profit margin of 8.1%, indicating healthy profitability. EBIT and EBITDA margins are robust at 12.3% and 9.9% respectively, showcasing efficient operational management.
Balance Sheet
92
Very Positive
The company maintains a solid equity base with a high equity ratio of 75% in the TTM period. The debt-to-equity ratio is extremely low at 0.0088, indicating minimal leverage risk and strong financial stability. Return on Equity is impressive at 18.9%, reflecting effective utilization of equity capital.
Cash Flow
70
Positive
Operating cash flow is zero in the TTM period, indicating potential short-term cash challenges. However, historical free cash flow was positive with 401.9 million in 2023. Free cash flow to net income ratio was 49.6% in 2023, showing reasonable cash conversion. The absence of current period free cash flow data limits a comprehensive analysis.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
9.67B9.55B8.76B6.73B5.75B5.36B
Gross Profit
2.19B2.16B2.08B1.56B1.41B1.28B
EBIT
1.19B1.19B1.10B690.79M580.37M492.93M
EBITDA
1.34B1.35B1.28B764.80M608.29M528.89M
Net Income Common Stockholders
783.05M809.95M837.30M499.15M421.10M347.98M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.67B2.10B2.52B2.61B2.87B1.78B
Total Assets
5.52B5.65B5.95B4.61B4.36B3.00B
Total Debt
36.28M38.04M57.52M0.000.000.00
Net Debt
-1.63B-2.06B-2.46B-2.61B-2.87B-1.78B
Total Liabilities
1.37B1.42B2.23B1.04B861.31M765.74M
Stockholders Equity
4.14B4.22B3.71B3.57B3.50B2.23B
Cash FlowFree Cash Flow
0.00401.90M946.58M401.20M285.38M402.83M
Operating Cash Flow
0.00447.46M978.79M437.00M331.42M431.81M
Investing Cash Flow
0.00-294.88M-352.90M-260.64M-81.03M-87.57M
Financing Cash Flow
0.00-477.80M-721.00M-433.34M838.16M-112.68M

Needs Well, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price540.00
Price Trends
50DMA
458.56
Positive
100DMA
432.93
Positive
200DMA
371.78
Positive
Market Momentum
MACD
24.16
Positive
RSI
58.80
Neutral
STOCH
42.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3992, the sentiment is Positive. The current price of 540 is above the 20-day moving average (MA) of 521.35, above the 50-day MA of 458.56, and above the 200-day MA of 371.78, indicating a bullish trend. The MACD of 24.16 indicates Positive momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3992.

Needs Well, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥18.22B33.18
0.17%24.15%-7.80%
76
Outperform
¥21.81B25.96
1.67%3.71%-14.56%
71
Outperform
¥26.50B19.65
2.12%20.63%21.52%
64
Neutral
¥17.96B45.19
5.32%-19.27%
64
Neutral
¥24.81B101.25
37.63%184.40%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3992
Needs Well, Inc.
533.00
148.97
38.79%
JP:3741
Systems Engineering Consultants Co., Ltd.
5,180.00
936.45
22.07%
JP:3914
JIG-SAW INC.
2,715.00
-1,315.00
-32.63%
JP:4493
Cyber Security Cloud, Inc.
1,859.00
-387.00
-17.23%
JP:5132
pluszero,Inc.
3,270.00
1,107.00
51.18%

Needs Well, Inc. Corporate Events

Needs Well Inc. Amends Shareholder Benefit Program to Boost Market Position
Jun 2, 2025

Needs Well Inc. has announced an amendment to its shareholder benefit program, adding a new record date to increase the attractiveness of its shares and meet the Tokyo Stock Exchange Prime Market’s Continued Listing Criteria. This strategic move is part of ‘Operation 6.600,’ aiming to achieve a share price target of 600 yen by June 2025, thereby enhancing shareholder value and engagement.

Needs Well Inc. Forms Strategic AI Alliance with Hmcomm Inc.
May 19, 2025

Needs Well Inc. has announced a strategic business alliance with Hmcomm Inc. to integrate their AI technologies, aiming to secure a competitive advantage. This partnership will combine Hmcomm’s expertise in ‘sound x AI’ with Needs Well’s data analysis capabilities to create joint solutions and expand business opportunities. The alliance is expected to enhance both companies’ performance and corporate value in the medium to long term, although its immediate impact on the current fiscal year is minimal.

Needs Well Inc. Reports Strong Financial Results for Parent Company ODC Co., Ltd.
May 15, 2025

Needs Well Inc. announced the finalized financial results for its unlisted parent company, ODC Co., Ltd., for the fiscal year ending February 28, 2025. ODC Co., Ltd., primarily involved in the management of securities, reported a net profit of 122,704,923 yen, with significant contributions from interest income and gains on securities. The announcement highlights a strong financial performance, which may positively impact Needs Well Inc.’s market positioning and stakeholder confidence.

Needs Well Inc. Reports Modest Growth Amidst Profit Decline
May 12, 2025

Needs Well Inc. reported its consolidated financial results for the six months ending March 31, 2025, showing a modest increase in net sales and operating profit compared to the previous year. However, the profit attributable to owners of the parent decreased by 3.6%, reflecting a challenging market environment. The company maintains a strong equity ratio, and its financial forecast for the fiscal year ending September 30, 2025, anticipates continued growth in net sales and profits, indicating a positive outlook despite recent profit declines.

Needs Well Inc. Launches Shareholder Benefit Program to Boost Market Position
Apr 15, 2025

Needs Well Inc. has announced the introduction of a shareholder benefit program as part of its strategy to meet the Tokyo Stock Exchange Prime Market’s Continued Listing Criteria. The program aims to enhance the attractiveness of investing in the company’s shares by offering QUO cards to shareholders holding 1,000 or more shares. This initiative is part of ‘Operation 6.600,’ which targets a share price of 600 yen by June 2025, aiming to increase shareholder engagement and understanding of the company’s business.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.