Wellnet Corporation (2428) AI Stock Analysis

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Wellnet Corporation

(TSE/TYO:2428)

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Rating:70Outperform

Price Target:JPY 612.00▲(10.07% Upside)

Action:reiterated

Date:08/17/26

The overall score of 70 reflects a fundamentally sound company with strong profitability and a robust balance sheet, but tempered by recent cash flow concerns and revenue decline. The stock appears undervalued with a low P/E and high dividend yield, while technical indicators suggest a moderately positive trend. Investors should monitor cash flow recovery and revenue growth.

Positive Factors

Sustained Margin ExpansionThe multi-year improvement in gross and net margins indicates stronger profitability, whether from better pricing, service mix, or cost discipline. Reaching a 14% EBIT margin gives Wellnet more earnings resilience and creates greater capacity to reinvest in its communication platforms.

Negative Factors

Sharp Cash Flow ReversalThe latest negative operating and free cash flow materially weakens confidence in earnings quality and near-term self-funding capacity. Whether driven by working capital, investment, or weaker conversion, the reversal increases cash management risk until positive generation becomes consistent again.

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

Market Cap: JPY 10.55B
Dividend Yield: 5.31%
Average Volume (3M): 56.03K
Price to Earnings (P/E): 10.0
Beta (1Y): 0.63
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

Combining income statement (72), balance sheet (85), and cash flow (38) scores yields a moderate overall financial performance. Strong profitability and solid balance sheet are offset by recent negative cash flow and revenue decline, indicating near-term headwinds.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

38Negative

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 Price556.00

Price Trends

50DMA609.26Negative

100DMA618.93Negative

200DMA623.00Negative

Market Momentum

MACD-17.47Positive

RSI26.75Positive

STOCH25.84Neutral

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 556.00 is below the 20-day moving average (MA) of 586.75, below the 50-day MA of 609.26, and below the 200-day MA of 623.00, indicating a bearish trend. The MACD of -17.47 indicates Positive momentum. The RSI at 26.75 is Positive, neither overbought nor oversold. The STOCH value of 25.84 is Neutral, 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	83Outperform	JPY 80.79B	41.66	―	0.46%	17.01%	34.74%
JP:4430	74Outperform	JPY 8.30B	8.47	―	3.85%	9.66%	6.85%
JP:3915	73Outperform	JPY 26.94B	13.16	―	0.77%	19.19%	93.45%
JP:4434	71Outperform	JPY 24.29B	20.67	―	1.31%	23.79%	―
JP:2428	70Outperform	JPY 10.47B	10.02	―	5.31%	-7.91%	-0.03%
JP:3850	66Neutral	JPY 15.72B	14.79	―	2.03%	23.85%	56.39%
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	556.00	-74.43	-11.81%
JP:3850	NTT Data Intramart Corporation	3245.00	-762.04	-19.02%
JP:3915	TerraSky Co., Ltd.	2086.00	6.42	0.31%
JP:4430	TOKAI SOFT CO.,LTD.	1688.00	60.35	3.71%
JP:4434	Serverworks Co., Ltd.	3050.00	1276.38	71.96%
JP:4475	HENNGE K.K.	2378.00	1039.55	77.67%

Wellnet Corporation Corporate Events

Wellnet profit declines in Q1, but full-year forecast and dividend plan maintained

Oct 30, 2026

Wellnet Corporation reported net sales of ¥2.37 billion for the three months ended September 30, 2026, an 8.4% year-on-year decline, with operating profit down 25.1% and ordinary profit down 19.9%. Quarterly profit fell 12.0% to ¥224 million, and bas...

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