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Wellnet Corporation
(2428)
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Rating:68Neutral
Price Target:
¥691.00
▲(0.58% Upside)
Action:Downgraded
Date:08/17/26
The score is primarily driven by improved profitability and a strong, low-leverage balance sheet, but materially held back by the latest year’s sharp negative operating/free cash flow and a small revenue decline. Technicals are neutral-to-mildly positive, while valuation (low P/E and high dividend yield) provides meaningful support.
Positive Factors
Margin Expansion
Sustained margin improvement indicates stronger pricing, better cost discipline, or a more profitable mix. If maintained, the higher profitability can support earnings resilience and internal funding even without rapid revenue growth.
Negative Factors
Negative Cash Generation
The sharp reversal in operating and free cash flow weakens confidence in earnings quality and may reflect working-capital pressure, higher investment, or weaker collections. Persistent volatility could constrain reinvestment and financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained margin improvement indicates stronger pricing, better cost discipline, or a more profitable mix. If maintained, the higher profitability can support earnings resilience and internal funding even without rapid revenue growth.
Read all positive factors
Wellnet Corporation (2428) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.08B
Dividend Yield4.61%
Average Volume (3M)95.28K
Price to Earnings (P/E)11.2
Beta (1Y)0.64
Revenue Growth-7.87%
EPS Growth-0.59%
CountryJP
Employees131
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)57.24
Shares Outstanding19,400,000
10 Day Avg. Volume97,310
30 Day Avg. Volume95,283
Financial Highlights & Ratios
PEG Ratio-21.11
Price to Book (P/B)1.24
Price to Sales (P/S)1.14
P/FCF Ratio-5.41
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)N/A
Revenue Forecast (FY)N/A
Wellnet Corporation Business Overview & Revenue Model
Company Description
Wellnet Corporation delivers a wide range of electronic financial services across Japan, including payment settlement, digital billing, and various electronic payment options. The company also develops and furnishes mobile authentication solutions...
Wellnet Corporation Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
45
Neutral
| Breakdown | Jun 2025 | Jun 2025 | Jun 2024 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.06B | 10.92B | 10.13B | 9.42B | 8.95B |
| Gross Profit | 2.46B | 2.48B | 2.10B | 1.78B | 1.42B |
| EBITDA | 1.70B | 1.93B | 1.67B | 1.39B | 1.19B |
| Net Income | 1.08B | 1.08B | 836.79M | 635.50M | 532.23M |
Balance Sheet | |||||
| Total Assets | 25.98B | 29.31B | 27.16B | 24.91B | 23.66B |
| Cash, Cash Equivalents and Short-Term Investments | 13.32B | 17.50B | 16.66B | 14.07B | 13.13B |
| Total Debt | 1.50B | 1.60B | 1.73B | 1.80B | 1.90B |
| Total Liabilities | 16.72B | 20.45B | 18.78B | 17.08B | 16.25B |
| Stockholders Equity | 9.26B | 8.86B | 8.38B | 7.83B | 7.41B |
Cash Flow | |||||
| Free Cash Flow | -2.13B | 2.42B | 2.63B | 1.01B | 3.13B |
| Operating Cash Flow | -2.11B | 2.57B | 2.64B | 1.11B | 3.28B |
| Investing Cash Flow | -1.27B | -993.20M | 333.89M | 268.39M | -267.19M |
| Financing Cash Flow | -797.67M | -737.01M | -392.22M | -360.99M | -390.77M |
Wellnet Corporation Technical Analysis
Positive
687.00
Price Trends
629.56
Positive
620.56
Positive
626.60
Positive
Market Momentum
2.66
Negative
55.35
Neutral
69.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2428, the sentiment is Positive. The current price of 687 is above the 20-day moving average (MA) of 635.35, above the 50-day MA of 629.56, and above the 200-day MA of 626.60, indicating a bullish trend. The MACD of 2.66 indicates Negative momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2428.
Wellnet Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥58.11B | 32.99 | ― | 0.64% | 19.17% | 46.29% | |
80 Outperform | ¥8.59B | 9.04 | ― | 3.06% | 15.03% | 17.34% | |
78 Outperform | ¥30.98B | 18.68 | ― | ― | 15.26% | 62.04% | |
72 Outperform | ¥17.34B | 17.68 | ― | 0.91% | 21.28% | 73.53% | |
68 Neutral | ¥12.08B | 11.18 | ― | 4.33% | -7.87% | -0.59% | |
63 Neutral | ¥20.08B | -52.80 | ― | ― | 17.69% | -175.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:2428
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Wellnet Corporation Corporate Events
Wellnet Posts Lower Sales but Lifts Dividend and Projects Earnings Recovery
Aug 10, 2026
Wellnet Corporation reported fiscal year 2026 net sales of ¥10.06 billion, down 7.9% year on year, with operating profit falling 6.1% to ¥1.41 billion and ordinary profit down 9.6% to ¥1.51 billion, while profit edged up 0.4% to ...
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.