Welby Inc. (4438) AI Stock Analysis

• Market Cap: ¥3.05B
• Dividend Yield: N/A
• Average Volume (3M): 10.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• 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: 13,540
• 30 Day Avg. Volume: 10,546
• 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: 53 Neutral
• Price Target: ¥369.00 ▲(0.27%Upside)

Welby Inc.'s overall stock score is primarily hindered by its financial performance, characterized by declining revenues and negative profitability, which outweigh the positive technical indicators suggesting short-term momentum. The unfavorable valuation due to negative earnings further impacts the score.

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
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: 368.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 368 is above the 20-day moving average (MA) of 362.15, above the 50-day MA of 355.84, and above the 200-day MA of 357.57, indicating a bullish trend. The MACD of 1.91 indicates Negative momentum. The RSI at 55.40 is Neutral, neither overbought nor oversold. The STOCH value of 44.10 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	72 Outperform	¥3.47B	13.49		1.86%	4.08%	94.18%
3939	70 Outperform	¥20.77B	21.20		1.48%	17.20%	20.25%
4438	53 Neutral	¥3.05B	―		―	-4.68%	-62.31%
6034	50 Neutral	¥4.03B	―		―	-7.73%	-303.99%
Sector *	46 Neutral	C$203.97M	-3.15	-23.14%	2.72%	21.17%	-0.61%
4263	45 Neutral	¥10.31B	―		―	-79.38%	-1239.83%
3902	43 Neutral	¥16.03B	4,465.71		1.58%	-7.98%	-181.00%