Needs Well, Inc. (3992) AI Stock Analysis

• Market Cap: ¥22.90B
• Dividend Yield: 2.26%
• Average Volume (3M): 575.50K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.19
• Revenue Growth: 5.07%
• EPS Growth: 10.80%
• Country: JP
• Employees: 616
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 6.82
• Shares Outstanding: 40,699,200
• 10 Day Avg. Volume: 192,370
• 30 Day Avg. Volume: 575,503
• PEG Ratio: 2.15
• Price to Book (P/B): 4.33
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 26.28
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥612.00 ▲(8.90% Upside)

Needs Well, Inc. has a strong financial foundation with consistent revenue growth and profitability, which is the most significant factor in its stock score. The technical analysis indicates a bearish trend, which is a concern. The valuation is reasonable but not compelling. Overall, the stock is positioned well financially but faces technical challenges.

Positive Factors

Strong balance sheet

Minimal leverage and a high equity ratio provide durable financial flexibility: supports investment, M&A optionality, and resilience in downturns. A strong capital structure reduces refinancing risk and preserves strategic optionality for long-term execution of growth initiatives.

Consistent revenue and margins

Sustained revenue increases combined with stable operating margins indicate persistent product-market fit and disciplined cost management. This profile supports predictable earnings generation, reinvestment capacity, and the ability to defend margins against competition over the medium term.

Solid cash generation

Reliable cash conversion from operations underpins funding for capex, R&D, dividends, and debt avoidance. Strong FCF relative to net income enhances financial stability and enables strategic investments without excessive external financing, a durable advantage for medium-term growth.

Negative Factors

Volatile free cash flow growth

Irregular free cash flow growth creates uncertainty around the company’s ability to consistently fund investments or distributions. Fluctuating FCF can force sudden cuts to discretionary spending or increase reliance on external financing, weakening long-term execution capacity.

Slight gross margin decline

A gradual erosion in gross margin points to rising input costs or pricing pressure that could compress long-term profitability. If unchecked, sustained margin decline reduces reinvestment capacity and makes competitive differentiation harder, especially in infrastructure software markets.

Modest revenue growth rate

Low-single-digit top-line growth limits scale benefits and may indicate constrained market share expansion. In a software infrastructure industry where peers can scale rapidly, modest growth can restrict long-term margin expansion and strategic market positioning unless offset by higher pricing or new product wins.

Needs Well, Inc. Business Overview & Revenue Model

Company Description

Needs Well Inc. engages in the IT service business in Japan. It provides NW Security Police, an in-house information security solution, which prevents unauthorized connection; okta, an integrated authentication service, that manages single sign-on, ID management, access control, etc. on cloud; VOTIRO Disarmer, an email or file sanitization solution; Symantec Web Isolation solutions; MobiControl, a mobile security and device management solutions; and SmartWMS, a warehouse management system. The company also offers IT reengineering services, an in-house system operation improvement consulting and data linkage system construction; WinActor, a business automation robot; SAP Concur, a cloud system for business trip, expense management, and invoice management; HotProfile, a business card management and sales tools; Work AI service, a business AI service; DX Suite, which converts various documents into data; and Speak Analyzer that visualizes communication in various business scenarios, and supports education and bottom-up measures for corporate employees. In addition, it provides system development tools comprising Web performer, a low-code development platform that automatically generates web applications without programming; and 2025 Solutions, an DX promotion solution for financial systems. Needs Well Inc. was incorporated in 1986 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Needs Well, Inc. generates revenue through multiple streams, including direct sales of its health and wellness products via its online platform and retail partnerships. The company also benefits from subscription services that offer customers regular deliveries of its nutritional supplements and personal care items. Additionally, Needs Well, Inc. has established significant partnerships with fitness centers and wellness influencers, which enhance brand visibility and drive sales through co-marketing initiatives. Furthermore, the company may engage in affiliate marketing programs, allowing third-party marketers to earn commissions on sales generated through their referrals, thus expanding its reach and customer base.

Needs Well, Inc. Financial Statement Overview

Summary

Needs Well, Inc. shows strong financial performance with consistent revenue growth, solid profitability, and a robust balance sheet. The low leverage and high return on equity are significant strengths. However, the volatility in free cash flow growth requires attention.

Income Statement

Needs Well, Inc. has demonstrated consistent revenue growth over the years, with a notable increase in the latest period. The company maintains healthy gross and net profit margins, indicating strong profitability. The EBIT and EBITDA margins are stable, reflecting efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company exhibits a strong balance sheet with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is robust, showcasing effective use of shareholder funds to generate profits. The equity ratio is high, reflecting a solid capital structure with significant equity backing.

Cash Flow

Operating cash flow has shown improvement, aligning well with net income, which suggests good cash conversion. Free cash flow growth has been volatile, with periods of decline, but the overall free cash flow to net income ratio remains strong. This indicates that the company is generating sufficient cash to cover its net income, although fluctuations in free cash flow growth could pose risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.77B	10.03B	9.55B	8.76B	6.73B	5.75B
Gross Profit	2.18B	2.18B	2.16B	2.08B	1.56B	1.41B
EBITDA	1.37B	1.46B	1.35B	1.28B	764.80M	608.29M
Net Income	775.11M	887.11M	809.95M	837.30M	499.15M	421.10M
Balance Sheet
Total Assets	6.09B	6.51B	5.65B	5.95B	4.61B	4.36B
Cash, Cash Equivalents and Short-Term Investments	2.59B	2.76B	2.10B	2.52B	2.61B	2.87B
Total Debt	32.24M	30.30M	38.04M	57.52M	0.00	0.00
Total Liabilities	1.49B	1.74B	1.42B	2.23B	1.04B	861.31M
Stockholders Equity	4.59B	4.76B	4.22B	3.71B	3.57B	3.50B
Cash Flow
Free Cash Flow	0.00	785.60M	401.90M	946.58M	401.20M	285.38M
Operating Cash Flow	0.00	795.93M	447.46M	978.79M	437.00M	331.42M
Investing Cash Flow	0.00	217.76M	-294.88M	-352.90M	-260.64M	-81.03M
Financing Cash Flow	0.00	-349.88M	-477.80M	-721.00M	-433.34M	838.16M

Needs Well, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 562.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3992, the sentiment is Positive. The current price of 562 is below the 20-day moving average (MA) of 572.70, above the 50-day MA of 547.54, and above the 200-day MA of 520.51, indicating a neutral trend. The MACD of 4.25 indicates Positive momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 32.23 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	78 Outperform	¥18.09B	26.25	―	0.17%	31.39%	13.12%
3741	75 Outperform	¥35.32B	25.30	―	1.74%	21.97%	15.89%
3914	67 Neutral	¥17.74B	42.61	―	―	3.17%	-16.66%
5132	67 Neutral	¥19.87B	53.58	―	―	26.91%	135.34%
3992	66 Neutral	¥22.90B	24.09	―	2.26%	5.07%	10.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.93B	-45.43	―	―	―	―

Needs Well, Inc. Corporate Events

Needs Well to Grant Restricted Stock to Directors as Part of Governance and Incentive Overhaul

Needs Well Inc. has approved the disposal of 9,754 shares of its treasury stock as restricted stock compensation for four internal directors, with a disposal price of ¥574 per share and a total value of approximately ¥5.6 million. The move follows shareholder approval to introduce a restricted stock compensation framework and transition to a company with an Audit and Supervisory Committee, aiming to better align directors’ incentives with shareholder interests, tie compensation to stock performance, and support the company’s long-term corporate value and governance structure through strict transfer restrictions, clawback provisions, and rules for treatment in corporate reorganizations.

The most recent analyst rating on (JP:3992) stock is a Hold with a Yen625.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well Clarifies Relationship With Major Affiliated Shareholder ODC Co., Ltd.

Needs Well Inc. has disclosed that ODC Co., Ltd. qualifies as an “other affiliated company,” holding a total of 41.76% of its voting rights as of September 30, 2025, through direct and aggregated holdings amounting to 15,808,200 shares. ODC is a personal asset management firm wholly owned by a close relative of Needs Well’s founder, President and CEO, but the company emphasizes that ODC has no involvement in its business activities, imposes no restrictions on management or operations, and that there are currently no transactions with this controlling-shareholder-equivalent entity, clarifying the governance and independence of its corporate structure for investors and other stakeholders.

The most recent analyst rating on (JP:3992) stock is a Hold with a Yen559.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well Reshapes Board and Executive Roles After Shareholders’ Meeting

Needs Well Inc. has announced a new composition of its Board of Directors following the company’s 39th Annual General Meeting of Shareholders held on December 23, 2025, confirming Hajime Matsuoka as President and CEO and detailing executive responsibilities across sales, technical, administrative, finance, and affiliate oversight. Key executives, including Managing Directors Koji Tabata and Tatsuya Ozama, have been assigned broad operational oversight of administrative, sales, and technical divisions, while the board also includes a full-time Audit and Supervisory Committee member and multiple outside independent directors, reinforcing the company’s governance framework and internal controls for stakeholders.

The most recent analyst rating on (JP:3992) stock is a Hold with a Yen559.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well Inc. Announces Amendments to Articles of Incorporation

Needs Well Inc. announced its decision to amend its Articles of Incorporation to transition from a company with an Audit and Supervisory Board to one with an Audit and Supervisory Committee. This change aims to enhance board discussions by allowing greater participation from both internal and external members, streamline decision-making by delegating authority to executives, and strengthen the board’s monitoring capabilities. The amendments are set to be approved at the upcoming Annual General Meeting of Shareholders in December 2025.

The most recent analyst rating on (JP:3992) stock is a Hold with a Yen554.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well, Inc. Announces Board of Directors Election Amid Governance Transition

Needs Well, Inc. has announced the election of candidates for its Board of Directors as part of its transition to a company with an Audit and Supervisory Committee. This strategic move, which includes amendments to the Articles of Incorporation, is set to be finalized at the upcoming Annual General Meeting of Shareholders. The changes are expected to enhance the company’s governance structure and align with regulatory standards, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (JP:3992) stock is a Hold with a Yen554.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well Inc. Reports Fiscal Year 2025 Financial Results and Positive Outlook

Needs Well Inc. reported its consolidated financial results for the fiscal year ending September 30, 2025, showing a 5.1% increase in net sales to ¥10,032 million. Despite the rise in sales, the company experienced a slight decline in operating and ordinary profits by 2.5% and 3.2%, respectively. However, profit attributable to owners of the parent increased by 9.5% to ¥887 million. The company also announced an increase in annual dividends per share from ¥9.00 to ¥12.00, reflecting a commitment to returning value to shareholders. The financial forecast for the next fiscal year anticipates a 9.6% increase in net sales and a 19.4% rise in operating profit, indicating positive growth expectations.

The most recent analyst rating on (JP:3992) stock is a Hold with a Yen554.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well, Inc. Meets Tokyo Stock Exchange Prime Market Listing Criteria

Needs Well, Inc. has successfully met all the continued listing criteria for the Tokyo Stock Exchange Prime Market as of September 2025. This achievement reflects the company’s strategic initiatives to comply with listing requirements, thereby ensuring its market position and reinforcing stakeholder trust. The company plans to maintain compliance and focus on sustainable growth and corporate value enhancement.

The most recent analyst rating on (JP:3992) stock is a Hold with a Yen554.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.