Welby Inc. (4438) AI Stock Analysis

• Market Cap: ¥3.00B
• Dividend Yield: N/A
• Average Volume (3M): 86.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -4.68%
• EPS Growth: -62.31%
• Country: JP
• Employees: 54
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -20.27
• Shares Outstanding: 8,275,582
• 10 Day Avg. Volume: 12,200
• 30 Day Avg. Volume: 86,273
• PEG Ratio: -0.67
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.41
• 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: 48 Neutral
• Price Target: ¥327.00 ▼(-10.41%Downside)

Welby Inc.'s overall stock score reflects significant financial and valuation concerns. The primary challenges include declining revenue, negative profitability, and cash flow issues, which overshadow the strong equity position. Technical analysis provides some hope, with moderate buying interest, but the negative P/E ratio and lack of income returns further weigh down the score. Strategic changes are needed to improve operational efficiency and market performance.

Welby Inc. Business Overview & Revenue Model

Company Description

Welby Inc. (4438) is a company operating in the healthcare technology sector, specializing in digital health solutions. The company develops and provides platforms and services that enable efficient management and delivery of healthcare information. Its offerings are designed to improve patient engagement, streamline healthcare operations, and enhance data analytics for healthcare providers.

How the Company Makes Money

Welby Inc. generates revenue primarily through the sale and licensing of its digital health platforms and services to healthcare providers, hospitals, and clinics. The company may also offer subscription-based models for ongoing access to its software solutions and data analytics tools. Additionally, Welby Inc. could engage in strategic partnerships with other technology firms and healthcare organizations to expand its reach and enhance its product offerings, further driving revenue. Key revenue streams likely include direct sales, subscription fees, and potentially consulting or implementation services related to its solutions.

Welby Inc. Financial Statement Overview

Summary

Welby Inc. faces financial challenges with declining revenue, negative profitability, and cash flow issues. Despite its strong equity position and low debt, the company needs to improve operational efficiency and profitability to ensure long-term sustainability. The persistent negative cash flows and net income highlight the need for strategic realignment to drive growth and manage expenses effectively.

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
	EBIT
-654.45M	-437.00M	60.91M	-113.12M	-237.54M
	EBITDA
-792.75M	-435.00M	40.29M	-127.70M	-309.28M
	Net Income Common Stockholders
-804.60M	-505.00M	33.91M	-130.68M	-353.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
740.43M	883.00M	830.82M	960.72M	1.10B
	Total Assets
1.17B	1.21B	1.40B	1.39B	1.52B
	Total Debt
200.00M	1.00M	8.35M	15.49M	22.63M
	Net Debt
-540.00M	-882.00M	-822.47M	-945.23M	-1.08B
	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: 365.00
• 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:4438, the sentiment is Positive. The current price of 365 is above the 20-day moving average (MA) of 363.05, above the 50-day MA of 341.96, and above the 200-day MA of 361.64, indicating a neutral trend. The MACD of 5.17 indicates Positive momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 20.74 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	83 Outperform	¥3.74B	14.53		1.73%	4.08%	94.18%
3939	65 Neutral	¥19.63B	20.04		1.57%	17.20%	20.25%
6034	55 Neutral	¥4.08B	―		―	-7.73%	-303.99%
Sector *	53 Neutral	$5.24B	3.32	-44.36%	6.63%	16.78%	-0.12%
4438	48 Neutral	¥3.00B	―		―	-4.68%	-62.31%
4263	45 Neutral	¥10.38B	―		―	-79.38%	-1239.83%
3902	43 Neutral	¥15.75B	4,465.71		1.61%	-7.98%	-181.00%