Needs Well, Inc. (3992) AI Stock Analysis

• Market Cap: ¥23.59B
• Dividend Yield: 2.26%
• Average Volume (3M): 575.50K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.16
• 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: ¥559.00 ▼(-0.53% Downside)

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

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term sustainability.

Balance Sheet Health

A low debt-to-equity ratio reduces financial risk and enhances the company's ability to invest in growth opportunities.

Profitability

Strong profitability margins demonstrate efficient cost management and pricing power, ensuring long-term financial health.

Negative Factors

Free Cash Flow Volatility

Volatility in free cash flow can impact the company's ability to fund operations and growth initiatives consistently.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, potentially affecting long-term profitability.

Technical Challenges

Persistent technical challenges could reflect broader market concerns, impacting investor confidence and stock performance.

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 health with robust revenue growth, healthy profit margins, and low leverage. However, the zero operating cash flow in the TTM period indicates potential short-term liquidity challenges.

Income Statement

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

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

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	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: Negative
• RSI: Negative
• STOCH: Negative

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 above the 20-day moving average (MA) of 542.95, above the 50-day MA of 531.36, and above the 200-day MA of 504.84, indicating a bullish trend. The MACD of 13.90 indicates Negative momentum. The RSI at 75.93 is Negative, neither overbought nor oversold. The STOCH value of 91.25 is Negative, 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	¥18.62B	28.10	―	0.17%	31.39%	13.12%
3741	76 Outperform	¥33.22B	23.85	―	1.74%	21.97%	15.89%
3914	67 Neutral	¥17.62B	43.64	―	―	3.17%	-16.66%
5132	67 Neutral	¥22.61B	61.75	―	―	26.91%	135.34%
3992	66 Neutral	¥23.59B	24.98	―	2.26%	5.07%	10.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.26B	-25.28	―	―	―	―

Needs Well, Inc. Corporate Events

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.

Needs Well Inc. Revises Financial Forecast Amid Project Delays and Increased Costs

Needs Well Inc. has revised its financial forecast for the fiscal year ending September 30, 2025, due to delays in public-sector projects and increased costs from salary hikes and a new shareholder benefit program. Despite these challenges, the company expects to maintain an ordinary profit margin above 10% and anticipates a year-on-year increase in operating and ordinary profit, excluding the shareholder program’s impact.

The most recent analyst rating on (JP:3992) stock is a Buy with a Yen607.00 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 Prime Market Listing Criteria

Needs Well, Inc. has announced that it meets the Tokyo Stock Exchange’s Prime Market listing maintenance criteria, with a free-float market capitalization of approximately 11.7 billion yen as of the end of September 2025. This achievement indicates the company’s strong market position and compliance with the exchange’s requirements, pending formal approval after the review process.

The most recent analyst rating on (JP:3992) stock is a Buy with a Yen657.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.