Wellco Holdings Corp. (7831) AI Stock Analysis

• Market Cap: ¥1.39B
• Dividend Yield: 2.35%
• Average Volume (3M): 140.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -1.42%
• EPS Growth: -151.32%
• Country: JP
• Employees: 294
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -11.79
• 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: ¥92.00 ▲(6.98% Upside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

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

Revenue Growth Trend

Reported 4.78% revenue growth and a noted slight recent uptick indicate underlying demand resilience in core services. Over a 2–6 month horizon this suggests the company can stabilize top-line trends if cost discipline continues, supporting recovery in utilization and operations.

Positive FCF-to-Net-Income Ratio

Management reports a positive free cash flow to net income ratio, implying some capacity to convert accounting losses into cash. Structurally, this gives the company a foundation to prioritize deleveraging, manage working capital, or fund targeted restructuring over the medium term if trends persist.

Ongoing Dividend Payout

A 2.33% dividend yield signals a continuing return-of-capital policy and a degree of cash allocation discipline. For long-term holders, a maintained dividend can reflect management commitment to shareholder returns and impose capital allocation restraints that may support prudent financial decisions as operations are stabilized.

Negative Factors

Rising Leverage

The balance sheet’s rising debt-to-equity ratio and reduced equity ratio indicate growing leverage and a thinner capital cushion. Structurally, higher leverage increases refinancing and interest burdens, limits strategic flexibility, and raises insolvency risk in an economic slowdown over the coming months.

Negative Operating Cash Flow

Negative operating and free cash flow in the latest year point to persistent liquidity stress. Without sustainable operating cash generation the company will face constraints funding operations, servicing debt, or supporting dividends, likely forcing cost cuts, asset sales, or dilutive financing in the medium term.

Sustained Unprofitability & Margin Pressure

Historic revenue declines, negative EBIT and net margins, and falling gross margins demonstrate structural profitability issues. Persistent margin pressure undermines return on equity and the firm’s ability to self-fund investments or reduce debt, posing a material medium-term threat to business viability.

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.

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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	8.48B	8.60B	8.82B	9.03B	10.68B
Gross Profit	1.21B	1.47B	1.43B	2.00B	2.26B
EBITDA	-296.00M	19.00M	150.00M	379.00M	425.00M
Net Income	-948.00M	-436.00M	-227.00M	327.00M	284.00M
Balance Sheet
Total Assets	7.92B	9.29B	12.10B	11.36B	11.36B
Cash, Cash Equivalents and Short-Term Investments	1.12B	2.52B	4.14B	4.52B	4.17B
Total Debt	2.53B	2.08B	2.66B	3.10B	3.17B
Total Liabilities	6.50B	5.72B	6.20B	7.19B	7.64B
Stockholders Equity	1.42B	3.57B	5.90B	4.17B	3.71B
Cash Flow
Free Cash Flow	-833.00M	-1.13B	115.00M	411.00M	746.00M
Operating Cash Flow	-669.00M	-481.00M	245.00M	513.00M	814.00M
Investing Cash Flow	-86.00M	-563.00M	-206.00M	-124.00M	-98.00M
Financing Cash Flow	-652.00M	-583.00M	-416.00M	-34.00M	-626.00M

Wellco Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 86.00
• 50DMA: Negative
• 100DMA: Positive
• 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 92.45, below the 50-day MA of 91.02, and below the 200-day MA of 101.28, indicating a bearish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 20.44 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
7805	77 Outperform	¥3.53B	4.67	―	1.93%	-1.00%	105.56%
7793	76 Outperform	¥4.50B	10.64	―	2.05%	―	―
7851	67 Neutral	¥1.03B	109.03	―	2.07%	7.89%	―
7919	66 Neutral	¥3.61B	6.84	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.60B	-22.35	―	2.72%	-1.30%	―
7831	46 Neutral	¥1.39B	-1.87	―	2.35%	-1.42%	-151.32%