Wellco Holdings Corp. (7831) AI Stock Analysis

• Market Cap: ¥1.36B
• Dividend Yield: 2.35%
• Average Volume (3M): 140.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -1.42%
• EPS Growth: -151.32%
• Country: JP
• Employees: 294
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -31.33
• Shares Outstanding: 15,522,250
• 10 Day Avg. Volume: 53,990
• 30 Day Avg. Volume: 140,246
• PEG Ratio: -0.02
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -2.35
• 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: 46 Neutral
• Price Target: ¥84.00 ▼(-2.33% Downside)

Wellco Holdings Corp. has a low overall stock score due to significant financial challenges, including declining revenue, profitability issues, and liquidity concerns. The technical analysis indicates a bearish trend with potential oversold conditions, but the lack of positive momentum is concerning. The negative P/E ratio highlights the company's unprofitability, further impacting the valuation negatively. The dividend yield offers some relief but is insufficient to offset the broader financial and operational challenges.

Positive Factors

Diversified Revenue Streams

Wellco's diversified revenue streams from direct-to-consumer and retail partnerships enhance market reach and resilience against sector-specific downturns.

Commitment to Innovation

Wellco's emphasis on innovative health solutions and quality products fosters brand loyalty, supporting long-term revenue growth and competitive positioning.

E-commerce Expansion

Leveraging e-commerce platforms allows Wellco to reach a broader audience, enhancing sales potential and adapting to digital market trends.

Negative Factors

Declining Revenue

Declining revenue trends indicate challenges in maintaining market share and could impact long-term growth prospects if not addressed.

Rising Leverage

Increased leverage heightens financial risk and may limit strategic flexibility, necessitating improved debt management for stability.

Liquidity Concerns

Liquidity challenges due to negative cash flows can strain operations and hinder the ability to invest in growth opportunities.

Wellco Holdings Corp. Business Overview & Revenue Model

Company Description

Wellco Holdings Corporation engages in the printing business in Japan. The company provides information and printing solutions, including advertising printing and sales promotion items, as well as produces and sells industrial and commercial printing products, etc. It offers direct mail formats, products with privacy protection measures, eco-friendly products, flyers, booklets, labels, and novelty products, as well as DTP, purchase record analysis, and waterless printing services. Wellco Holdings Corporation was incorporated in 1979 and is headquartered in Hakusan, Japan.

How the Company Makes Money

Wellco Holdings Corp. generates revenue through multiple key streams, primarily from the direct sales of its nutritional supplements and wellness products to consumers via retail channels and e-commerce platforms. The company also engages in B2B partnerships, supplying its products to health stores, pharmacies, and wellness clinics. Additionally, Wellco may benefit from licensing agreements for proprietary formulations or collaborations with health professionals, which can create new revenue opportunities. The company focuses on building brand loyalty through quality products and effective marketing strategies, which contribute to its overall earnings.

Wellco Holdings Corp. Financial Statement Overview

Summary

Wellco Holdings Corp. faces significant financial challenges across all major financial statements. The income statement shows declining revenue and profitability issues, while the balance sheet indicates increasing leverage and financial risk. Cash flow analysis highlights liquidity concerns. To improve its financial health, the company must focus on enhancing profitability, reducing debt levels, and improving cash flow generation.

Income Statement

Wellco Holdings Corp. has experienced declining revenue over the past few years, with a slight uptick in the most recent year. The company has struggled with profitability, as evidenced by negative EBIT and net profit margins in recent periods. The gross profit margin has also decreased, indicating potential challenges in cost management. Overall, the income statement reflects a company facing significant profitability challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, which has increased significantly in the most recent year, indicating rising leverage and potential financial risk. Return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio has decreased, suggesting a higher reliance on debt financing. These factors highlight a need for improved financial stability.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow in the latest year, indicating liquidity challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow, but overall cash flow trends are concerning. The company needs to improve its cash generation capabilities to support operations and reduce financial risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.35B	8.48B	8.60B	8.82B	9.03B	10.68B
Gross Profit	1.19B	1.21B	1.47B	1.66B	2.00B	2.15B
EBITDA	69.00M	-572.00M	-163.00M	189.00M	605.00M	425.00M
Net Income	-383.00M	-948.00M	-436.00M	2.00M	327.00M	284.00M
Balance Sheet
Total Assets	8.61B	7.92B	9.29B	11.17B	12.54B	12.86B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.12B	2.52B	4.14B	4.52B	4.17B
Total Debt	1.71B	2.53B	2.08B	2.66B	3.10B	3.17B
Total Liabilities	5.49B	6.50B	5.72B	6.87B	7.20B	7.65B
Stockholders Equity	3.12B	1.42B	3.57B	4.30B	6.00B	3.71B
Cash Flow
Free Cash Flow	0.00	-833.00M	-1.32B	43.00M	364.00M	728.00M
Operating Cash Flow	0.00	-669.00M	-481.00M	245.00M	513.00M	814.00M
Investing Cash Flow	0.00	-86.00M	-563.00M	-206.00M	-124.00M	-98.00M
Financing Cash Flow	0.00	-652.00M	-583.00M	-416.00M	-34.00M	-626.00M

Wellco Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 86.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7831, the sentiment is Negative. The current price of 86 is below the 20-day moving average (MA) of 89.30, below the 50-day MA of 87.58, and below the 200-day MA of 105.69, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 35.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7831.

Wellco Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7851	67 Neutral	¥1.23B	13.03	―	2.07%	7.89%	―
7946	67 Neutral	¥1.45B	26.96	―	1.68%	3.07%	-32.45%
7919	66 Neutral	¥3.44B	9.98	―	3.69%	0.62%	-24.08%
7939	64 Neutral	¥2.22B	12.81	―	3.72%	9.08%	40.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.62B	10.35	―	2.72%	-1.30%	―
7831	46 Neutral	¥1.36B	-2.21	―	2.35%	-1.42%	-151.32%