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SUNWELS Co.,Ltd.
(9229)
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Rating:42Neutral
Price Target:
¥110.00
▼(-67.93% Downside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by weak financial performance—sharp margin compression, an operating loss, rising leverage with equity erosion, and worsening cash generation (negative operating cash flow and persistent negative free cash flow). Technicals add pressure as the stock remains below key longer-term moving averages despite a short-term rebound. Valuation is constrained by losses (negative P/E) and no dividend yield data to offset risk.
Positive Factors
Stable sector demand
Operating in long-term eldercare ties the business to recurring, usage-based reimbursement and fee streams that are structurally persistent. This revenue profile supports predictability in demand and base utilization across economic cycles, benefiting long-term cash visibility.
Negative Factors
Margin collapse & operating loss
Severe gross margin compression and a move to operating loss materially weaken earnings power and undermine internal funding. Persistent margin deterioration suggests structural cost pressures or pricing weakness that, if unresolved, will impair profitability and the firm's ability to self-fund investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable sector demand
Operating in long-term eldercare ties the business to recurring, usage-based reimbursement and fee streams that are structurally persistent. This revenue profile supports predictability in demand and base utilization across economic cycles, benefiting long-term cash visibility.
Read all positive factors
SUNWELS Co.,Ltd. (9229) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.05B
Dividend YieldN/A
Average Volume (3M)115.88K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth7.33%
EPS Growth16.03%
CountryJP
Employees3,570
SectorGeneral
Sector StrengthN/A
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-51.06
Shares Outstanding35,220,000
10 Day Avg. Volume157,720
30 Day Avg. Volume115,876
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)1.15
Price to Sales (P/S)0.28
P/FCF Ratio-5.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-27.7
Revenue Forecast (FY)¥32.00B
SUNWELS Co.,Ltd. Business Overview & Revenue Model
Company Description
Sunwels Co., Ltd. primarily delivers nursing care services, with its operations prominently featuring the "PD house" model. The company runs specialized residential facilities for seniors diagnosed with Parkinson's disease and also manages a Kaats...
How the Company Makes Money
SUNWELS primarily earns revenue by operating care service facilities and providing long-term care services, receiving payments tied to service usage. Key revenue streams likely include fees and reimbursements associated with providing care under J...
SUNWELS Co.,Ltd. Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
24
Negative
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 28.14B | 26.50B | 20.11B | 13.24B | 8.17B |
| Gross Profit | 2.76B | 4.89B | 5.13B | 3.24B | 1.60B |
| EBITDA | 1.88B | 1.88B | 3.15B | 1.52B | 573.94M |
| Net Income | -1.66B | -925.00M | 802.00M | 303.60M | 10.65M |
Balance Sheet | |||||
| Total Assets | 45.63B | 39.44B | 31.74B | 19.30B | 9.10B |
| Cash, Cash Equivalents and Short-Term Investments | 4.09B | 5.64B | 3.31B | 2.61B | 814.76M |
| Total Debt | 29.11B | 22.49B | 20.11B | 11.20B | 6.60B |
| Total Liabilities | 38.66B | 30.82B | 26.54B | 14.69B | 8.52B |
| Stockholders Equity | 6.97B | 8.62B | 5.20B | 4.61B | 580.80M |
Cash Flow | |||||
| Free Cash Flow | -1.50B | -2.32B | -2.93B | -740.86M | -73.95M |
| Operating Cash Flow | -332.00M | 1.88B | 2.56B | 1.14B | 378.19M |
| Investing Cash Flow | -1.27B | -4.40B | -5.66B | -2.04B | -633.05M |
| Financing Cash Flow | 62.00M | 4.84B | 3.80B | 2.70B | 573.26M |
SUNWELS Co.,Ltd. Technical Analysis
Negative
343.00
Price Trends
136.38
Negative
176.42
Negative
278.20
Negative
Market Momentum
-7.94
Positive
31.53
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9229, the sentiment is Negative. The current price of 343 is above the 20-day moving average (MA) of 124.75, above the 50-day MA of 136.38, and above the 200-day MA of 278.20, indicating a bearish trend. The MACD of -7.94 indicates Positive momentum. The RSI at 31.53 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9229.
SUNWELS Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥2.99B | 6.77 | ― | 2.82% | 5.48% | 13.46% | |
56 Neutral | ¥2.59B | 30.76 | ― | 2.56% | -5.72% | -73.78% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | ¥5.50B | 52.50 | ― | 4.07% | 4.85% | -85.27% | |
46 Neutral | ¥4.75B | 15.61 | ― | 1.41% | 14.91% | -39.18% | |
42 Neutral | ¥4.05B | -2.51 | ― | ― | 7.33% | 16.03% |
* General Sector Average
JP:9229
SUNWELS Co.,Ltd.
115.00
-725.00
-86.31%
JP:2373
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JP:9220
FB CARE SERVICE CO.,LTD.
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16.61%
SUNWELS Co.,Ltd. Corporate Events
SUNWELS Details Transactions and Governance Measures Involving Controlling Shareholder
Jun 23, 2026
SUNWELS Co., Ltd. disclosed matters related to its controlling shareholder, President and Representative Director Ryotatsu Nawashiro, who holds a combined 53.70% voting interest through direct and indirect ownership. The company detailed recent tr...
Sunwels Replaces President to Strengthen Governance and Rebuild Stakeholder Trust
May 26, 2026
Sunwels Co., Ltd. has announced a leadership transition in which outside director Toshihiko Atarashi will become president and representative director, replacing incumbent chief executive Ryotatsu Nawashiro, who will remain on the board as a direc...
SUNWELS Completes Recurrence Prevention Overhaul in Home-Visit Nursing Operations
May 26, 2026
SUNWELS Co., Ltd. announced that it has largely completed the implementation of recurrence prevention measures for its home-visit nursing and care operations, moving from a remediation phase into continuous operation and improvement of new control...
SUNWELS Corrects Per-Share Data in FY2026 Non-Consolidated Results
May 13, 2026
SUNWELS Co., Ltd. announced that it has corrected errors in its previously released non-consolidated financial results for the fiscal year ended March 31, 2026, prepared under Japanese GAAP. The revisions affect per-share indicators, including net...
SUNWELS Scraps Year-End Dividend After Posting ¥1.66 Billion Net Loss
May 12, 2026
SUNWELS Co., Ltd. has announced that its board of directors resolved not to pay a year-end dividend for the fiscal year ended March 31, 2026, maintaining a dividend per share of zero yen as in the previous year. The decision follows the company...
Sunwels outlines FY March 2026 results and care-focused growth strategy
May 12, 2026
Sunwels Co., Ltd. released financial highlights for the fiscal year ending March 2026 alongside an overview of its business profile centered on healthcare and caregiving services. The company emphasized initiatives like its specialized ‘PD H...
SUNWELS Swings to Loss Despite Higher Sales, Signals Gradual Earnings Recovery
May 12, 2026
SUNWELS Co., Ltd. reported a 6.2% rise in net sales to ¥28.1 billion for the year ended March 31, 2026, but swung to an operating loss of ¥1.2 billion and an ordinary loss of ¥2.2 billion, resulting in a net loss of ¥1.7 billio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.