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Wellnet Corporation (JP:2428)
:2428
Japanese Market
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Wellnet Corporation (2428) AI Stock Analysis

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JP:2428

Wellnet Corporation

(2428)

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Neutral 68 (OpenAI - 5.2)
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)

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
Margins and profitability improved meaningfully (gross margin ~15% to ~24%, net margin ~4% to ~11%, EBIT margin ~14%), and the balance sheet is conservatively positioned with declining leverage (debt-to-equity ~0.28 to ~0.16). The main drag is cash flow: 2026 shows a sharp reversal to negative operating and free cash flow (~-2.1B each), raising concerns about cash conversion/working-capital volatility, alongside a modest revenue decline (~-1.7%) in 2026.
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
45
Neutral
BreakdownJun 2025Jun 2025Jun 2024Jun 2022Jun 2021
Income Statement
Total Revenue10.06B10.92B10.13B9.42B8.95B
Gross Profit2.46B2.48B2.10B1.78B1.42B
EBITDA1.70B1.93B1.67B1.39B1.19B
Net Income1.08B1.08B836.79M635.50M532.23M
Balance Sheet
Total Assets25.98B29.31B27.16B24.91B23.66B
Cash, Cash Equivalents and Short-Term Investments13.32B17.50B16.66B14.07B13.13B
Total Debt1.50B1.60B1.73B1.80B1.90B
Total Liabilities16.72B20.45B18.78B17.08B16.25B
Stockholders Equity9.26B8.86B8.38B7.83B7.41B
Cash Flow
Free Cash Flow-2.13B2.42B2.63B1.01B3.13B
Operating Cash Flow-2.11B2.57B2.64B1.11B3.28B
Investing Cash Flow-1.27B-993.20M333.89M268.39M-267.19M
Financing Cash Flow-797.67M-737.01M-392.22M-360.99M-390.77M

Wellnet Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price687.00
Price Trends
50DMA
629.56
Positive
100DMA
620.56
Positive
200DMA
626.60
Positive
Market Momentum
MACD
2.66
Negative
RSI
55.35
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥58.11B32.990.64%19.17%46.29%
80
Outperform
¥8.59B9.043.06%15.03%17.34%
78
Outperform
¥30.98B18.6815.26%62.04%
72
Outperform
¥17.34B17.680.91%21.28%73.53%
68
Neutral
¥12.08B11.184.33%-7.87%-0.59%
63
Neutral
¥20.08B-52.8017.69%-175.52%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2428
Wellnet Corporation
640.00
-89.62
-12.28%
JP:3850
NTT Data Intramart Corporation
3,675.00
-56.71
-1.52%
JP:3915
TerraSky Co., Ltd.
2,475.00
319.10
14.80%
JP:4430
TOKAI SOFT CO.,LTD.
1,804.00
242.03
15.50%
JP:4434
Serverworks Co., Ltd.
2,618.00
622.80
31.21%
JP:4475
HENNGE K.K.
1,743.00
13.63
0.79%

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 &#1...
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.Date of analysis: Aug 17, 2026