Wellco Holdings Corp. (7831) AI Stock Analysis

• Market Cap: ¥1.25B
• Dividend Yield: 2.11%
• Average Volume (3M): 140.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -2.94%
• EPS Growth: -14.67%
• Country: JP
• Employees: 294
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -12.56
• Shares Outstanding: 15,522,250
• 10 Day Avg. Volume: 53,990
• 30 Day Avg. Volume: 140,246
• PEG Ratio: <0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -2.31
• 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: 45 Neutral
• Price Target: ¥107.00 ▲(17.58% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenue, profitability, and cash flow constraints. Technical analysis indicates a bearish trend, and valuation is weak due to negative earnings. The absence of earnings call data and corporate events does not influence the score.

Positive Factors

Diversified Business Model

A diversified business model across wellness and healthcare sectors provides resilience against sector-specific downturns and enhances growth potential.

Market Presence Expansion

Expanding market presence through multiple sales channels, including e-commerce, strengthens brand visibility and customer reach, supporting long-term revenue growth.

Strategic Partnerships

Strategic partnerships enhance product offerings and distribution capabilities, fostering innovation and competitive advantage in the health and wellness market.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial health and growth prospects.

Negative Cash Flow

Negative cash flow reflects operational inefficiencies and financial strain, limiting the company's ability to invest in growth opportunities and manage liabilities.

Profitability Concerns

Negative profitability highlights operational challenges and cost pressures, which could undermine long-term sustainability and shareholder value.

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

The company faces significant financial challenges, with declining revenue and profitability, increasing operational inefficiencies, and cash flow constraints. The balance sheet shows moderate leverage but declining equity, indicating financial strain. Overall, the company needs to address its operational and financial issues to improve its financial health and stability.

Income Statement

The income statement reveals declining revenue and profitability over the years. Gross profit margin decreased from 19.2% in 2020 to 17.1% in 2024, while net income turned negative in 2024, resulting in a net profit margin of -5.1%. Revenue has been decreasing consistently, with a significant drop from 2020 to 2024. EBIT and EBITDA margins have also deteriorated, indicating operational challenges and cost pressures.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.58 in 2024, indicating manageable leverage. However, stockholders' equity has declined, reflecting financial strain. The equity ratio decreased from 40.5% in 2020 to 38.4% in 2024, suggesting reduced financial stability. Return on equity has turned negative due to net losses, highlighting profitability concerns.

Cash Flow

The cash flow statement indicates significant challenges, with operating cash flow turning negative in 2024. Free cash flow has deteriorated from positive in previous years to negative in 2024, reflecting cash flow constraints. The free cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.35B	8.60B	8.82B	9.03B	10.68B	11.94B
Gross Profit	1.19B	1.47B	1.66B	2.00B	2.15B	2.48B
EBITDA	69.00M	-163.00M	189.00M	605.00M	425.00M	480.00M
Net Income	-383.00M	-436.00M	2.00M	327.00M	284.00M	-28.00M
Balance Sheet
Total Assets	8.61B	9.29B	11.17B	12.54B	12.86B	13.73B
Cash, Cash Equivalents and Short-Term Investments	1.60B	2.52B	4.14B	4.52B	4.17B	4.08B
Total Debt	1.71B	2.08B	2.66B	3.10B	3.17B	3.76B
Total Liabilities	5.49B	5.72B	6.87B	7.20B	7.65B	8.16B
Stockholders Equity	3.12B	3.57B	4.30B	6.00B	3.71B	5.56B
Cash Flow
Free Cash Flow	0.00	-1.32B	43.00M	364.00M	728.00M	368.00M
Operating Cash Flow	0.00	-481.00M	245.00M	513.00M	814.00M	527.00M
Investing Cash Flow	0.00	-563.00M	-206.00M	-124.00M	-98.00M	360.00M
Financing Cash Flow	0.00	-583.00M	-416.00M	-34.00M	-626.00M	-732.00M

Wellco Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 91.00
• 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:7831, the sentiment is Neutral. The current price of 91 is above the 20-day moving average (MA) of 84.20, below the 50-day MA of 92.37, and below the 200-day MA of 111.07, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 42.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7831.

Wellco Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7919	68 Neutral	¥3.28B	7.11	―	3.89%	0.62%	-24.08%
7851	67 Neutral	¥1.19B	12.63	―	1.98%	7.89%	―
7946	67 Neutral	¥1.29B	24.06	―	1.72%	3.07%	-32.45%
7939	64 Neutral	¥2.06B	9.64	―	3.87%	9.08%	40.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.77%	-1.30%	―
7831	45 Neutral	¥1.25B	―	―	2.11%	-2.94%	-14.67%