Wellco Holdings Corp. (7831) AI Stock Analysis

• Market Cap: ¥3.00B
• Dividend Yield: 1.64%
• Average Volume (3M): 9.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -2.55%
• EPS Growth: -131.40%
• Country: JP
• Employees: 294
• Sector: Industrials
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): 0.28
• Shares Outstanding: 24,650,800
• 10 Day Avg. Volume: 10,790
• 30 Day Avg. Volume: 9,933
• PEG Ratio: -0.32
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 42 Neutral
• Price Target: ¥115.00 ▼(-4.17%Downside)

The most significant factor affecting the overall score is the company's poor financial performance, characterized by declining revenue and profitability, operational inefficiencies, and negative cash flows. Technical analysis further indicates bearish momentum, while the valuation reflects financial distress with a negative P/E ratio. These challenges overshadow the lack of notable earnings call data or corporate events.

Wellco Holdings Corp. Business Overview & Revenue Model

Company Description

Wellco Holdings Corp. (7831) is a diversified company primarily engaged in the health and wellness sector. The company focuses on manufacturing and distributing high-quality nutritional supplements, wellness products, and health-related services. Its core offerings include vitamins, minerals, herbal products, and specialized dietary formulations aimed at enhancing overall health and well-being. Wellco Holdings operates in various markets, catering to both retail consumers and healthcare professionals, thereby establishing a broad customer base.

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 is experiencing significant financial challenges with declining revenue, profitability issues, and cash flow constraints. Despite a moderately stable balance sheet, increasing leverage and continuous losses raise concerns about long-term viability.

Income Statement

The income statement reveals a significant downturn with a declining revenue trend over the last five years, culminating in a net income loss in the most recent period. Gross profit margins have deteriorated, and the company has struggled to maintain positive EBIT and EBITDA margins, reflecting operational inefficiencies and potential market challenges.

Balance Sheet

The balance sheet presents a moderately stable financial position, with a reasonable debt-to-equity ratio due to a decrease in total debt. However, diminishing stockholders' equity and total assets pose concerns. The equity ratio has decreased over time, indicating higher leverage and potential financial risk if liabilities continue to outweigh equity.

Cash Flow

Cash flow analysis shows a worrying trend, with negative free cash flow and declining operating cash flow, suggesting cash management issues. The free cash flow to net income ratio is negative, indicating the company's inability to convert net income into cash flow. This could impact its ability to finance operations without relying heavily on external funding.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.60B	8.82B	9.03B	10.68B	11.94B
Gross Profit	1.47B	1.66B	1.75B	2.15B	2.48B
EBITDA	-164.00M	189.00M	605.00M	425.00M	123.00M
Net Income	-436.00M	2.00M	113.00M	266.00M	-28.00M
Balance Sheet
Total Assets	9.29B	11.17B	12.54B	12.86B	13.73B
Cash, Cash Equivalents and Short-Term Investments	2.52B	4.14B	4.52B	4.17B	4.08B
Total Debt	2.08B	2.66B	3.10B	3.17B	3.76B
Total Liabilities	5.72B	6.87B	6.54B	7.11B	8.16B
Stockholders Equity	3.57B	4.30B	6.00B	5.75B	5.56B
Cash Flow
Free Cash Flow	-1.32B	43.00M	364.00M	728.00M	368.00M
Operating Cash Flow	-481.00M	245.00M	513.00M	814.00M	527.00M
Investing Cash Flow	-563.00M	-206.00M	-124.00M	-98.00M	360.00M
Financing Cash Flow	-583.00M	-416.00M	-34.00M	-626.00M	-732.00M

Wellco Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 120 is below the 20-day moving average (MA) of 123.00, below the 50-day MA of 123.30, and above the 200-day MA of 119.61, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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
7939	72 Outperform	¥2.17B	11.77		3.63%	5.57%	22.28%
7919	71 Outperform	¥3.25B	6.01		2.72%	2.92%	-6.49%
7851	69 Neutral	¥1.20B	11.80		0.79%	9.17%	―
Sector *	67 Neutral	£2.82B	10.48	4.69%	3.54%	2.70%	-19.89%
7946	64 Neutral	¥2.41B	39.32		1.37%	5.17%	-57.42%
7916	60 Neutral	¥4.35B	61.60		3.52%	0.38%	24.47%
7831	42 Neutral	¥3.00B	―		1.64%	-2.55%	-131.40%