Welby Inc. (4438) AI Stock Analysis

• Market Cap: ¥2.98B
• Dividend Yield: N/A
• Average Volume (3M): 7.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -4.68%
• EPS Growth: -62.31%
• Country: JP
• Employees: 54
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -20.27
• Shares Outstanding: 8,275,582
• 10 Day Avg. Volume: 3,500
• 30 Day Avg. Volume: 7,263
• PEG Ratio: 0.87
• Price to Book (P/B): 4.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 44 Neutral
• Price Target: ¥345.00 ▼(-3.63%Downside)

Welby Inc.'s financial struggles, characterized by declining revenues and persistent losses, heavily influence the stock's score. Technical analysis shows a lack of clear momentum, while the negative valuation metrics further weigh down the score. Improvements in profitability and cash flow are critical for enhancing the stock's outlook.

Welby Inc. Business Overview & Revenue Model

Company Description

Welby Inc. (4438) is a technology-driven company specializing in innovative healthcare solutions. Operating primarily in the digital health sector, Welby focuses on developing software applications and platforms that enhance patient engagement, streamline healthcare delivery, and improve health outcomes. The company's core products include mobile health applications, data analytics tools, and telehealth services, aimed at both healthcare providers and patients.

How the Company Makes Money

Welby Inc. generates revenue through multiple streams. Primarily, the company earns money by offering subscription-based services for its digital health platforms, which healthcare providers pay for to access tools that improve patient care and operational efficiency. Additionally, Welby monetizes its mobile applications through in-app purchases and advertising. The company may also enter into partnerships with healthcare organizations and pharmaceutical companies, which can provide a steady income through collaborative projects and licensing agreements. Furthermore, government grants and funding for health technology innovation can contribute to its financial growth, especially in projects that align with public health initiatives.

Welby Inc. Financial Statement Overview

Summary

Welby Inc. faces significant financial challenges, with declining revenue and persistent negative profitability and cash flow issues. Despite a strong equity position and low debt levels, these financial constraints overshadow potential strengths.

Income Statement

Welby Inc. has experienced declining total revenue over the past years, with a significant decrease from 2019 to 2024. The gross profit margin remains relatively high, but the company has consistently reported negative net income, leading to negative net profit margins. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and challenges in managing expenses.

Balance Sheet

The company maintains a strong equity ratio, suggesting a solid capital structure with low reliance on debt. The debt-to-equity ratio is low, which indicates low financial leverage. However, the return on equity is negative due to continuous losses, which raises concerns about shareholder value creation.

Cash Flow

Welby Inc. exhibits negative operating and free cash flows, which are concerning for liquidity and operational sustainability. The free cash flow to net income ratio is not favorable due to significant losses. However, the company has managed to maintain a substantial level of cash and short-term investments, which provides some financial cushion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	528.04M	575.00M	1.05B	1.14B	864.64M
Gross Profit	379.92M	376.00M	755.44M	683.91M	506.30M
EBITDA	-792.75M	-435.00M	40.29M	-127.70M	-309.28M
Net Income	-804.60M	-505.00M	33.91M	-130.68M	-353.09M
Balance Sheet
Total Assets	1.17B	1.21B	1.40B	1.39B	1.52B
Cash, Cash Equivalents and Short-Term Investments	740.43M	883.00M	830.82M	960.72M	1.10B
Total Debt	200.00M	1.00M	8.35M	15.49M	22.63M
Total Liabilities	328.90M	88.00M	121.40M	134.83M	162.60M
Stockholders Equity	810.02M	1.09B	1.27B	1.26B	1.36B
Cash Flow
Free Cash Flow	-776.25M	-177.00M	-146.86M	-115.46M	-155.09M
Operating Cash Flow	-603.63M	-174.00M	-114.11M	-95.95M	-110.97M
Investing Cash Flow	-235.84M	235.61M	-7.04M	-34.56M	-19.48M
Financing Cash Flow	696.54M	-8.75M	-8.74M	-7.14M	20.00M

Welby Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 358.00
• 50DMA: Negative
• 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:4438, the sentiment is Positive. The current price of 358 is below the 20-day moving average (MA) of 360.70, below the 50-day MA of 361.68, and above the 200-day MA of 353.63, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4438.

Welby Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6545	77 Outperform	¥3.73B	14.49		1.73%	4.08%	94.18%
3939	72 Outperform	¥20.91B	21.35		1.47%	17.20%	20.25%
Sector *	50 Neutral	AU$2.61B	3.79	-58.14%	2.69%	36.37%	13.78%
6034	46 Neutral	¥3.89B	―		―	-7.73%	-303.99%
4263	45 Neutral	¥15.01B	―		―	-79.38%	-1239.83%
4438	44 Neutral	¥2.98B	―		―	-4.68%	-62.31%
3902	43 Neutral	¥19.65B	4,465.71		1.26%	-7.98%	-181.00%