eWeLL Co.,Ltd (5038) AI Stock Analysis

• Market Cap: ¥35.80B
• Dividend Yield: 0.47%
• Average Volume (3M): 37.66K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.94
• Revenue Growth: 31.05%
• EPS Growth: 46.12%
• Country: JP
• Employees: 90
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Application
• EPS (TTM): 16.76
• Shares Outstanding: 15,251,838
• 10 Day Avg. Volume: 52,070
• 30 Day Avg. Volume: 37,660
• PEG Ratio: 1.10
• Price to Book (P/B): 11.78
• Price to Sales (P/S): 11.72
• P/FCF Ratio: 32.38
• 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): 92.4
• Revenue Forecast (FY): ¥4.17B

• Rating: 72 Outperform
• Price Target: ¥2,605.00 ▼(-1.77% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Strong financial performance (excellent profitability, debt-free balance sheet, and good cash conversion) is the primary driver of the score. This is offset by weak technical momentum (below key moving averages with negative MACD) and a valuation that is not cheap (P/E ~31.6 with a low dividend yield).

Positive Factors

Debt-free balance sheet

Zero reported debt and improving leverage give persistent financial flexibility: supports M&A, product investment, and capital returns without refinancing risk. A conservative balance sheet enhances resilience through cycles and sustains strategic optionality over months to years.

High and durable margins

Exceptionally high gross and operating margins reflect a scalable software model and pricing power, providing durable operating leverage. These margins create persistent cash generation capacity and buffer against cost inflation, supporting long-term profitability and reinvestment.

Strong cash conversion

Operating cash flow consistently outpacing net income and near-par free cash flow conversion indicate high-quality earnings. Reliable cash conversion supports sustainable capex, dividends or buybacks, and reduces external financing dependence over multi-quarter horizons.

Negative Factors

Growth deceleration

A material slowdown to ~14% revenue growth after multi-year stronger expansion suggests maturation of the core market or waning share gains. Sustained deceleration can limit future earnings leverage and constrain long-term margin-driven EPS growth absent new product or market expansion.

Uneven free cash flow history

Intermittent free cash flow volatility evidences timing or working-capital sensitivity despite recent recovery. Persisting unevenness can complicate multi-period capital allocation, weaken predictability for dividends or buybacks, and raise short-to-medium term funding timing risk.

ROE fallen from peak levels

While ROE remains strong, its decline from prior peaks suggests diminishing incremental returns on equity as scale increases. If the trend continues it could signal reduced operating leverage or market pressures, moderating long-run return on invested capital.

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

High-quality fundamentals: strong multi-year revenue growth, best-in-class margins (2025 net margin ~32%, EBIT margin ~45%), debt-free balance sheet, and solid cash conversion (operating cash flow exceeds net income). Main risk is noticeable revenue growth deceleration in 2025 (~14%).

Income Statement

Revenue has compounded strongly over 2020–2025 (from ~0.79B to ~3.39B) with consistently high gross margins (~77–82%). Profitability is excellent and improving in scale, with 2025 net margin ~32% and very strong operating profitability (EBIT margin ~45%). The main watch item is that growth has moderated materially in the latest year (2025 revenue growth ~14% vs. higher rates in prior years), which could signal maturing momentum.

Balance Sheet

The balance sheet is very conservative: total debt is zero in 2024–2025 and leverage has steadily improved from earlier years. Equity has grown meaningfully alongside assets, supporting expansion without balance-sheet strain. Returns on equity remain strong (~32% in 2025), though down from exceptionally high earlier levels, indicating profitability is still robust but no longer at peak intensity.

Cash Flow

Cash generation is solid and high-quality: 2025 operating cash flow (~1.27B) exceeds net income (coverage ~1.58x), and free cash flow is close to earnings (free cash flow to net income ~0.97), suggesting profits are converting well to cash. A prior-year dip in free cash flow (2023) shows cash flow can be somewhat uneven, but the most recent two years show strong recovery and consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.97B	3.39B	2.57B	2.07B	1.60B	1.19B
Gross Profit	2.35B	2.65B	2.00B	1.64B	1.27B	961.36M
EBITDA	1.48B	1.64B	1.22B	970.59M	714.51M	418.70M
Net Income	990.39M	1.09B	808.26M	612.90M	449.56M	340.29M
Balance Sheet
Total Assets	3.52B	4.28B	3.07B	2.38B	1.65B	1.06B
Cash, Cash Equivalents and Short-Term Investments	2.22B	2.86B	1.97B	1.41B	1.08B	617.07M
Total Debt	0.00	0.00	0.00	91.50M	96.06M	180.62M
Total Liabilities	701.16M	908.43M	661.49M	690.00M	543.94M	557.13M
Stockholders Equity	2.82B	3.38B	2.41B	1.69B	1.11B	504.15M
Cash Flow
Free Cash Flow	0.00	1.23B	839.09M	401.97M	472.15M	347.06M
Operating Cash Flow	0.00	1.27B	856.79M	626.91M	543.38M	408.64M
Investing Cash Flow	0.00	-210.38M	-77.89M	-217.84M	-136.43M	-73.75M
Financing Cash Flow	0.00	-168.38M	-225.88M	-71.36M	51.19M	-44.56M

eWeLL Co.,Ltd Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5038, the sentiment is Neutral. The current price of 2652 is above the 20-day moving average (MA) of 2296.95, above the 50-day MA of 2543.62, and above the 200-day MA of 2583.12, indicating a neutral trend. The MACD of -91.38 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 77.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5038.

eWeLL Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3835	75 Outperform	¥20.08B	17.06	―	3.14%	0.50%	-2.92%
4477	73 Outperform	¥37.49B	20.04	―	―	27.97%	-5.25%
5038	72 Outperform	¥35.80B	32.71	―	0.47%	31.05%	46.12%
4397	68 Neutral	¥7.04B	17.46	―	―	11.32%	―
9629	68 Neutral	¥37.21B	25.92	―	4.58%	4.58%	-15.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
5027	49 Neutral	¥31.62B	33.52	―	―	20.84%	10.41%

eWeLL Co.,Ltd Corporate Events

eWeLL Tops FY2025 Forecasts and Sets Stage for New Medium-Term Growth Plan

eWeLL Co., Ltd. reported strong FY12/2025 results, with net sales rising 31.9% year on year to ¥3.392 billion and operating profit climbing 35.3% to ¥1.537 billion, delivering a 45.3% operating margin and slightly exceeding its earnings forecasts. Contract numbers increased 15.6% and monthly churn remained extremely low at 0.17%, while a modest decline in unit price per customer reflected a strategic deferral of billing for its AI home-visit scheduling and routes service, which was largely offset by robust performance in its BPaaS and AI plans and reports offerings.

eWeLL signaled a transition to a new medium-term business plan starting next fiscal year that prioritizes future-focused investment alongside continued profit growth. The combination of above-forecast earnings, high-margin operations, and low churn underpins its capacity to fund this next phase of expansion, reinforcing its positioning in the healthcare technology niche and offering stakeholders a picture of sustainable, subscription-driven growth despite short-term revenue timing adjustments.

The most recent analyst rating on (JP:5038) stock is a Hold with a Yen2395.00 price target. To see the full list of analyst forecasts on eWeLL Co.,Ltd stock, see the JP:5038 Stock Forecast page.

eWeLL Posts Strong 2025 Earnings and Hikes Dividend as It Forecasts Further Growth for 2026

eWeLL Co., Ltd. reported strong non-consolidated results for the fiscal year ended December 31, 2025, with net sales rising 31.9% year on year to ¥3,392 million and net income climbing 34.6% to ¥1,088 million, reflecting high profitability metrics such as a 45.3% operating margin and robust returns on equity and assets. The company’s financial position also strengthened, with total assets increasing to ¥4,283 million, equity capital ratio holding at a solid 78.8%, and cash and cash equivalents expanding to ¥2,857 million, indicating ample liquidity to support growth and shareholder returns.

eWeLL continued to enhance shareholder value by raising its annual dividend from ¥12.00 to ¥16.00 per share for 2025 while maintaining a payout ratio of 22.3%, and it plans a further increase to ¥21.00 for 2026, signaling confidence in earnings sustainability. The company’s forecast for the fiscal year ending December 31, 2026, calls for another year of strong expansion, with net sales projected to grow 26.1% to ¥4,277 million and net income expected to rise 22.2% to ¥1,329 million, underscoring management’s expectations of continued operational momentum and reinforcing its competitive standing in the healthcare IT market.

Cash flow from operating activities improved markedly to ¥1,270 million in 2025, more than covering investing and financing outflows and contributing to the higher year-end cash balance. This combination of vigorous earnings growth, disciplined balance sheet management, and a steadily rising dividend profile suggests a favorable outlook for investors and supports eWeLL’s efforts to consolidate its position as a profitable, growth-oriented player in Japan’s healthcare technology sector.

The most recent analyst rating on (JP:5038) stock is a Buy with a Yen2929.00 price target. To see the full list of analyst forecasts on eWeLL Co.,Ltd stock, see the JP:5038 Stock Forecast page.

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.