eWeLL Co.,Ltd (5038) AI Stock Analysis

• Market Cap: ¥38.14B
• Dividend Yield: 0.47%
• Average Volume (3M): 37.66K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.97
• Revenue Growth: 31.05%
• EPS Growth: 46.12%
• Country: JP
• Employees: 90
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Application
• EPS (TTM): 18.78
• Shares Outstanding: 15,251,838
• 10 Day Avg. Volume: 52,070
• 30 Day Avg. Volume: 37,660
• PEG Ratio: 1.46
• Price to Book (P/B): 12.25
• Price to Sales (P/S): 11.47
• P/FCF Ratio: 35.17
• 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: 73 Outperform
• Price Target: ¥3,255.00 ▲(22.74% Upside)

The score is driven primarily by excellent financial performance (high margins, strong ROE, and a debt-free balance sheet). This is tempered by mixed technical momentum (negative MACD and uneven moving-average positioning) and a relatively expensive valuation (high P/E and low dividend yield).

Positive Factors

High Profitability

Sustained very high margins indicate durable software economics and pricing power. Such profitability supports reinvestment, high return on capital and resilience to cyclical headwinds, enabling consistent cash generation and strategic optionality over the medium term.

Debt-Free Balance Sheet

Elimination of leverage materially reduces financial risk and interest expense sensitivity, improving flexibility to fund R&D, M&A, or shareholder returns. A debt-free position strengthens resilience through downturns and preserves strategic choices over the coming years.

Strong Cash Conversion

Robust cash conversion shows reported earnings are largely backed by real cash, supporting sustainable funding for operations and strategic investments. Persistent positive FCF enhances ability to invest in growth, build reserves, or return capital, bolstering long-term financial health.

Negative Factors

Slowing Revenue Growth

A marked deceleration to mid-single-digit growth suggests the business may be transitioning to a more mature phase or facing demand headwinds. Slower top-line expansion can pressure long-term return expectations and increases reliance on margin maintenance or new initiatives to drive future value.

Free Cash Flow Volatility

Intermittent swings in free cash flow, driven by working-capital or investment timing, reduce predictability of internal funding for capex, M&A or distributions. Persistent volatility would complicate planning and could constrain consistent capital allocation despite positive average FCF.

ROE Moderation as Equity Expanded

ROE moderation reflects dilution of capital efficiency as the equity base expanded. If the company cannot redeploy incremental equity at prior high returns, normalized ROE could lower long-term profitability per capital unit and raise the bar for sustaining investor return expectations.

eWeLL Co.,Ltd Business Overview & Revenue Model

Company Description

eWeLL Co.,Ltd. develops business support cloud services for visiting nursing stations in Japan. It also provides iBow, a SaaS-type business support tool that contributes to improving customer productivity; iBow receipt, a receipt system exclusively for visiting nursing that has the function of making insurance claims; iBow KINTAI a dedicated nursing attendance system; and iBow Nursing Care Claim Transmission Service. The company was founded in 2012 and is headquartered in Osaka, Japan.

How the Company Makes Money

eWeLL Co., Ltd generates revenue primarily through the sale and licensing of its healthcare IT solutions to medical institutions such as hospitals, clinics, and other healthcare providers. The company may also engage in subscription-based models or offer maintenance and support services for its software products, which provide ongoing revenue streams. Additionally, partnerships with other technology providers or healthcare organizations could play a role in expanding their market reach and enhancing their product offerings, contributing to their overall earnings.

eWeLL Co.,Ltd Financial Statement Overview

Summary

Fundamentals are very strong: multi-year revenue compounding (2020–2024) with exceptional profitability (2024 operating margin ~44%, EBITDA margin ~47%, net margin ~31%). The balance sheet is de-risked to effectively debt-free with strong ROE (~34%). Key risk is slowing revenue growth in 2024 (~6%) and some free-cash-flow unevenness despite positive FCF.

Income Statement

Revenue has compounded strongly over 2020–2024 (from ~¥0.79B to ~¥2.57B), indicating solid demand and scaling. Profitability is a standout: gross margin remains very high (~77%–82%) and operating profitability is exceptional (2024 operating margin ~44% and EBITDA margin ~47%), with net margin also strong (~31% in 2024). A key watch-out is growth volatility—2024 growth slowed to ~6% after stronger prior years, suggesting a more mature growth phase or lumpy sales cycles.

Balance Sheet

The balance sheet has materially strengthened, with debt reduced from higher leverage in 2020 (debt-to-equity ~1.37) to effectively debt-free in 2024 (total debt ¥0; debt-to-equity 0.0), reducing financial risk. Equity has expanded significantly (to ~¥2.41B in 2024), supporting a larger asset base (~¥3.07B). Returns on equity remain very strong (~34% in 2024), though they have moderated from earlier years as the equity base grew—healthy normalization, but worth monitoring for continued efficiency.

Cash Flow

Cash generation is solid and generally supports reported earnings: operating cash flow exceeded net income in 2024 (about 1.53x), and free cash flow was nearly equal to net income (~0.98x), indicating good cash conversion. Free cash flow is positive each year, but it has shown some unevenness (a decline in 2023 before rebounding in 2024), which suggests periodic working-capital or investment swings despite strong underlying profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.97B	2.57B	2.07B	1.60B	1.19B	790.77M
Gross Profit	2.35B	2.00B	1.64B	1.27B	961.36M	649.75M
EBITDA	1.48B	1.22B	970.59M	714.51M	418.70M	210.81M
Net Income	990.39M	808.26M	612.90M	449.56M	340.29M	184.88M
Balance Sheet
Total Assets	3.52B	3.07B	2.38B	1.65B	1.06B	610.98M
Cash, Cash Equivalents and Short-Term Investments	2.22B	1.97B	1.41B	1.08B	617.07M	326.74M
Total Debt	0.00	0.00	91.50M	96.06M	180.62M	225.18M
Total Liabilities	701.16M	661.49M	690.00M	543.94M	557.13M	447.11M
Stockholders Equity	2.82B	2.41B	1.69B	1.11B	504.15M	163.87M
Cash Flow
Free Cash Flow	0.00	839.09M	401.97M	472.15M	347.06M	179.85M
Operating Cash Flow	0.00	856.79M	626.91M	543.38M	408.64M	195.90M
Investing Cash Flow	0.00	-77.89M	-217.84M	-136.43M	-73.75M	-15.68M
Financing Cash Flow	0.00	-225.88M	-71.36M	51.19M	-44.56M	-4.56M

eWeLL Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2652.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5038, the sentiment is Negative. The current price of 2652 is below the 20-day moving average (MA) of 2772.55, below the 50-day MA of 2655.50, and above the 200-day MA of 2570.87, indicating a bearish trend. The MACD of -32.91 indicates Positive momentum. The RSI at 31.35 is Neutral, neither overbought nor oversold. The STOCH value of 6.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5038.

eWeLL Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥46.00B	15.98	―	1.92%	20.81%	68.06%
5038	73 Outperform	¥38.14B	35.66	―	0.47%	31.05%	46.12%
3692	73 Outperform	¥74.65B	62.96	―	0.20%	50.53%	227.57%
3983	70 Outperform	¥32.45B	17.37	―	1.45%	5.48%	5.36%
5027	70 Outperform	¥40.94B	24.12	―	―	20.84%	10.41%
4259	64 Neutral	¥62.15B	-33.25	―	―	8.98%	-581.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

eWeLL Co.,Ltd Corporate Events

eWeLL Co., Ltd. Reports Strong Q3 Results and Increases Dividend

eWeLL Co., Ltd. announced strong financial results for the third quarter of FY12/2025, leading to a decision to increase dividend payments by JPY1. The company’s AI Home-visit Scheduling & Routes service has seen significant interest, with over 1,000 free trial applications, which reflects a positive reception and potential for future growth. This performance underscores eWeLL’s solid market position and its ability to generate stable cash flow, supporting its shareholder return policy.

eWeLL Co., Ltd. Boosts Dividends Amid Strong Q3 Performance

eWeLL Co., Ltd. reported strong financial results for the third quarter of FY2025, with net sales and operating profit surpassing forecasts. This performance has led the company to increase its dividend payments by JPY1, reflecting its stable cash-generating ability and commitment to shareholder returns. Additionally, the company has seen significant interest in its new AI Home-visit Scheduling and Routes service, with over 1,000 free trial applications, indicating strong market reception and potential for future growth.

eWeLL Co., Ltd Reports Strong Financial Growth and Increases Dividend Forecast

eWeLL Co., Ltd has reported significant growth in its financial results for the nine months ended September 30, 2025, with net sales increasing by 33% and net income rising by 43.7% compared to the previous year. The company also announced a revised dividend forecast, increasing the fiscal year-end dividend to 16 yen per share, reflecting its strong financial performance and commitment to shareholder returns.