SUNWELS Co.,Ltd. (9229) AI Stock Analysis

• Market Cap: ¥8.81B
• Dividend Yield: N/A
• Average Volume (3M): 115.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 10.09%
• EPS Growth: -340.83%
• Country: JP
• Employees: 2,435
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -16.60
• Shares Outstanding: 35,220,000
• 10 Day Avg. Volume: 157,720
• 30 Day Avg. Volume: 115,876
• PEG Ratio: 0.09
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -7.88
• 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): -74
• Revenue Forecast (FY): ¥28.30B

• Rating: 48 Neutral
• Price Target: ¥228.00 ▼(-33.53% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weak technicals (strong downtrend and bearish momentum) and financial risk factors (loss-making year and high leverage), partially offset by solid revenue growth and comparatively better operating cash generation than reported earnings.

Positive Factors

Revenue Growth

SUNWELS has exhibited sustained revenue growth through 2025, indicating expanding demand for its eldercare services. Durable top-line expansion supports scale benefits, service network strengthening, and reinvestment capacity, underpinning medium-term operational resilience.

Operating Cash Generation

Despite accounting losses, the company generates solid operating cash versus reported earnings, showing cash conversion strength. Persistent operating cash inflows can fund day-to-day operations, service obligations and selective capex, reducing reliance on short-term financing.

Improving Equity Base

An improving equity ratio signals a gradual strengthening of the company’s balance sheet and a larger asset buffer. Over the medium term this enhances solvency, supports creditor confidence and improves flexibility to absorb operational volatility or pursue strategic investments.

Negative Factors

Negative Profitability

The shift to negative net income and margins in 2025 is a structural concern, eroding retained earnings and reducing ability to self-fund growth. Persistent losses impair ROE and limit reinvestment capacity, necessitating operational or strategic fixes to restore sustainable profitability.

High Leverage

Significant debt relative to equity raises financial vulnerability, increasing interest and refinancing risk. High leverage constrains strategic flexibility, heightens sensitivity to cash flow swings and may limit investment or M&A options until leverage is meaningfully reduced.

Free Cash Flow Volatility

Repeated negative and volatile free cash flow undermines long-term funding for capital needs and debt repayment. Reliance on external financing or asset adjustments to cover FCF shortfalls increases execution risk and can hamper sustained operational improvements.

SUNWELS Co.,Ltd. Business Overview & Revenue Model

Company Description

Sunwels Co.,Ltd. operates nursing care business centered on PD house. It operates homes for the elderly that specializes in Parkinson disease, as well as a Kaatsu training gym; provides day care, in-home care support, care plan, and home remodeling services; and operates medical specific facilities. Sunwels Co.,Ltd. was incorporated in 2006 and is headquartered in Kanazawa, Japan.

How the Company Makes Money

SUNWELS Co., Ltd. generates revenue primarily through the sale of solar energy products, including photovoltaic panels and energy storage systems. The company also earns income from the installation services it provides to clients, ensuring that customers receive a complete solution for their energy needs. In addition to product sales, SUNWELS may engage in long-term service agreements and maintenance contracts, which provide a steady stream of recurring revenue. Strategic partnerships with other energy companies and government entities for renewable energy projects further bolster its financial performance, allowing SUNWELS to participate in larger-scale initiatives and benefit from subsidies or incentives related to clean energy development.

SUNWELS Co.,Ltd. Financial Statement Overview

Summary

Revenue growth has been strong, but profitability deteriorated with negative net income in 2025 and weakening/volatile margins. Balance sheet risk is elevated due to high leverage and inconsistent/negative ROE, while cash flow quality is mixed with strong operating cash generation but negative recent free cash flow.

Income Statement

SUNWELS Co.,Ltd. has shown significant revenue growth over the years, with a notable increase from 2020 to 2025. However, the company is facing challenges in profitability, as indicated by a negative net profit margin in 2025. The gross profit margin has decreased over time, and the EBIT and EBITDA margins have also shown volatility, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses a risk. The return on equity has been inconsistent, with a negative ROE in 2025 due to negative net income. The equity ratio has improved over the years, suggesting a gradual strengthening of the equity base relative to total assets.

Cash Flow

SUNWELS Co.,Ltd. has experienced fluctuations in free cash flow, with negative free cash flow in recent years, highlighting cash management challenges. The operating cash flow to net income ratio is strong, indicating good cash generation relative to reported earnings. However, the free cash flow to net income ratio is concerning due to negative free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.46B	26.50B	21.36B	13.72B	8.42B	5.40B
Gross Profit	3.59B	4.92B	6.42B	3.75B	2.11B	1.38B
EBITDA	1.84B	1.88B	4.35B	1.45B	819.00M	559.72M
Net Income	-2.17B	-925.00M	802.00M	303.00M	255.71M	241.42M
Balance Sheet
Total Assets	42.22B	38.99B	31.52B	19.21B	9.02B	4.79B
Cash, Cash Equivalents and Short-Term Investments	3.62B	5.64B	3.31B	2.61B	814.76M	496.36M
Total Debt	26.64B	22.49B	20.11B	11.20B	6.60B	3.03B
Total Liabilities	34.32B	30.37B	24.38B	13.84B	8.15B	4.09B
Stockholders Equity	7.89B	8.62B	7.14B	4.61B	864.74M	693.47M
Cash Flow
Free Cash Flow	0.00	-2.32B	-2.94B	-741.00M	-78.18M	-392.99M
Operating Cash Flow	0.00	1.88B	2.56B	1.14B	378.19M	201.03M
Investing Cash Flow	0.00	-4.40B	-5.66B	-2.04B	-633.05M	-648.06M
Financing Cash Flow	0.00	4.84B	3.80B	2.70B	573.26M	489.42M

SUNWELS Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 343.00
• 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:9229, the sentiment is Negative. The current price of 343 is above the 20-day moving average (MA) of 260.60, above the 50-day MA of 318.60, and below the 200-day MA of 529.08, indicating a bearish trend. The MACD of -19.46 indicates Negative momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 61.27 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2374	75 Outperform	¥30.30B	16.98	―	2.48%	3.88%	0.31%
6059	69 Neutral	¥7.31B	16.25	―	2.71%	1.26%	562.09%
6557	65 Neutral	¥8.29B	12.59	―	―	14.05%	-12.70%
7133	64 Neutral	¥7.74B	18.92	―	1.80%	18.58%	-6.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9229	48 Neutral	¥8.81B	-5.17	―	―	10.09%	-340.83%
7061	45 Neutral	¥6.47B	33.86	―	1.41%	18.03%	-11.68%

SUNWELS Co.,Ltd. Corporate Events

Sunwels Highlights Q3 FY2026 Progress in Specialized Healthcare and Caregiving

Sunwels Co., Ltd. reported highlights for the third quarter of its fiscal year ending March 2026, emphasizing its strategic focus on specialized healthcare and caregiving services. The company underscored initiatives such as the ‘PD House’ for Parkinson’s disease as part of its broader mission to tackle social issues tied to medical care and elder support.

By aligning its business profile with long-term societal needs, Sunwels aims to strengthen its role in sustainable healthcare infrastructure while addressing the growing demand for dedicated caregiving solutions. These efforts suggest a continued push to differentiate its service offerings in a niche but increasingly important segment of the healthcare market, which could enhance its positioning among patients, families, and institutional stakeholders.

The most recent analyst rating on (JP:9229) stock is a Hold with a Yen334.00 price target. To see the full list of analyst forecasts on SUNWELS Co.,Ltd. stock, see the JP:9229 Stock Forecast page.

SUNWELS slips into loss despite higher sales, cuts equity ratio as full-year losses loom

SUNWELS Co., Ltd. reported non-consolidated net sales of ¥20.73 billion for the nine months ended December 31, 2025, a modest 2.2% increase year on year, but swung to an operating loss of ¥1.19 billion and a net loss of ¥2.06 billion amid a sharp drop in EBITDA. The company’s equity ratio fell from 22.0% to 14.3% as net assets contracted, and management maintained its full-year forecast, projecting higher sales but continued losses and a full-year dividend of zero, underscoring ongoing earnings pressure and a weaker balance sheet for shareholders.

SUNWELS’ balance sheet expanded to total assets of ¥45.69 billion, yet equity declined to ¥6.53 billion, reflecting accumulated losses and putting leverage metrics under strain. With no revisions to earnings or dividend guidance and special accounting methods applied to the quarterly statements, the update signals a challenging transition period in which revenue growth has not translated into profitability, raising concerns about capital strength and future shareholder returns.

The most recent analyst rating on (JP:9229) stock is a Hold with a Yen334.00 price target. To see the full list of analyst forecasts on SUNWELS Co.,Ltd. stock, see the JP:9229 Stock Forecast page.