Wellnet Corporation (2428) AI Stock Analysis

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Wellnet Corporation

(TSE/TYO:2428)

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Rating:68Neutral

Price Target:JPY 691.00▲(15.36% 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 ExpansionSustained 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 GenerationThe 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.

Wellnet Corporation (2428) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.36B
Dividend Yield: 4.92%
Average Volume (3M): 46.01K
Price to Earnings (P/E): 10.5
Beta (1Y): 0.60
Revenue Growth: -7.91%
EPS Growth: -0.03%
Country: Japan
Employees: 131
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

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, a...

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

74Positive

Balance Sheet

82Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2025	Jun 2024	Jun 2022	Jun 2021
Income Statement
Total Revenue	10.92B	10.92B	10.06B	10.13B	9.42B	8.95B
Gross Profit	2.52B	2.48B	2.46B	2.10B	1.78B	1.42B
EBITDA	1.82B	1.93B	1.70B	1.67B	1.39B	1.19B
Net Income	1.08B	1.08B	1.08B	836.79M	635.50M	532.23M
Balance Sheet
Total Assets	29.31B	29.31B	25.98B	27.16B	24.91B	23.66B
Cash, Cash Equivalents and Short-Term Investments	17.50B	17.50B	13.32B	16.66B	14.07B	13.13B
Total Debt	1.60B	1.60B	1.50B	1.73B	1.80B	1.90B
Total Liabilities	20.45B	20.45B	16.72B	18.78B	17.08B	16.25B
Stockholders Equity	8.86B	8.86B	9.26B	8.38B	7.83B	7.41B
Cash Flow
Free Cash Flow	8.35B	2.42B	-2.13B	2.63B	1.01B	3.13B
Operating Cash Flow	8.39B	2.57B	-2.11B	2.64B	1.11B	3.28B
Investing Cash Flow	-1.12B	-993.20M	-1.27B	333.89M	268.39M	-267.19M
Financing Cash Flow	-709.56M	-737.01M	-797.67M	-392.22M	-360.99M	-390.77M

Wellnet Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price599.00

Price Trends

50DMA623.48Negative

100DMA621.84Negative

200DMA626.78Negative

Market Momentum

MACD-5.52Positive

RSI25.23Positive

STOCH13.19Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2428, the sentiment is Negative. The current price of 599.00 is below the 20-day moving average (MA) of 613.20, below the 50-day MA of 623.48, and below the 200-day MA of 626.78, indicating a bearish trend. The MACD of -5.52 indicates Positive momentum. The RSI at 25.23 is Positive, neither overbought nor oversold. The STOCH value of 13.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2428.

Wellnet Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:2428 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4475	75Outperform	JPY 70.26B	39.58	―	0.53%	19.17%	46.29%
JP:4430	74Outperform	JPY 8.30B	8.47	―	3.85%	9.66%	6.85%
JP:3915	73Outperform	JPY 28.19B	13.77	―	0.73%	19.19%	93.45%
JP:2428	68Neutral	JPY 11.27B	10.46	―	4.92%	-7.91%	-0.03%
JP:3850	66Neutral	JPY 15.50B	14.58	―	2.06%	23.85%	56.39%
JP:4434	62Neutral	JPY 22.31B	18.98	―	1.43%	23.79%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:2428 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2428	Wellnet Corporation	599.00	-22.85	-3.67%
JP:3850	NTT Data Intramart Corporation	3200.00	-398.96	-11.09%
JP:3915	TerraSky Co., Ltd.	2183.00	119.28	5.78%
JP:4430	TOKAI SOFT CO.,LTD.	1688.00	13.98	0.84%
JP:4434	Serverworks Co., Ltd.	2801.00	988.16	54.51%
JP:4475	HENNGE K.K.	2091.00	631.14	43.23%

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.

Date of analysis: Aug 17, 2026

Wellnet Corporation AI Stock Analysis

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