WHY HOW DO COMPANY,Inc. (3823) AI Stock Analysis

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WHY HOW DO COMPANY,Inc.

(3823)

Rating:49Neutral

Price Target:

¥115.00

▼(-5.74%Downside)

The overall stock score is significantly impacted by the company's financial struggles, with persistent losses and cash flow issues being the primary concerns. Technical analysis provides some positive momentum, but the valuation remains challenging with a negative P/E ratio. The absence of earnings call and corporate events data limits insights into future prospects.

WHY HOW DO COMPANY,Inc. (3823) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥12.69B

Dividend YieldN/A

Average Volume (3M)10.10M

Price to Earnings (P/E)―

Beta (1Y)0.67

Revenue Growth45.82%

EPS Growth-6.97%

CountryJP

Employees31

SectorTechnology

Sector Strength79

IndustrySoftware - Application

Share Statistics

EPS (TTM)-11.59

Shares Outstanding104,020,690

10 Day Avg. Volume20,773,100

30 Day Avg. Volume10,099,133

Financial Highlights & Ratios

PEG Ratio-0.97

Price to Book (P/B)8.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

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

WHY HOW DO COMPANY,Inc. Business Overview & Revenue Model

Company DescriptionWHY HOW DO COMPANY, Inc. (3823) is a dynamic enterprise operating in the technology and consulting sectors. The company specializes in providing innovative solutions and strategic insights to businesses looking to optimize their operations and leverage cutting-edge technologies. Its core services include digital transformation consulting, data analytics, and custom software development, aimed at enhancing client efficiency and competitive advantage.

How the Company Makes MoneyThe company generates revenue primarily through service fees charged for its consulting and technology solutions. Key revenue streams include project-based consulting fees, subscription models for ongoing data analytics and support services, and licensing fees for custom software solutions. Significant partnerships with technology providers and industry leaders enhance the company's service offerings, allowing it to capture a diverse client base across various industries. Additionally, the company benefits from recurring revenue through long-term contracts and strategic alliances with major corporations.

WHY HOW DO COMPANY,Inc. Financial Statement Overview

Summary

WHY HOW DO COMPANY, Inc. is facing significant financial challenges. The income statement indicates declining revenues and persistent losses, with negative profit margins. The balance sheet shows moderate leverage but decreasing equity and negative returns on equity. The cash flow statement highlights severe cash conversion issues, underlining the company's struggle to generate positive cash flow from its operations.

Income Statement

Negative

The income statement reflects a challenging financial position for WHY HOW DO COMPANY, Inc. with declining revenues from 2019 to 2024. The gross profit margin has decreased from 42.5% in 2019 to 46.4% in 2024, indicating inefficiencies in cost management. Net profit margins are negative, with a steep decline in net income from 2020 onwards, suggesting ongoing operational challenges. The EBIT and EBITDA margins are also significantly negative, highlighting issues in operational profitability.

Balance Sheet

Neutral

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.61 in 2024, indicating manageable leverage. However, the company's equity ratio has decreased to 49.5% in 2024 from 75% in 2019, reflecting a diminished proportion of equity financing. Return on equity is negative due to consistent net losses, pointing to challenges in generating shareholder value.

Cash Flow

Negative

The cash flow statement reveals that WHY HOW DO COMPANY, Inc. is struggling with negative free cash flow, which worsened from -$3 million in 2019 to -$785 million in 2024. The operating cash flow to net income ratio is negative, suggesting that the company is not effectively converting its income into cash. Additionally, the free cash flow to net income ratio is also negative, highlighting the company's difficulty in generating cash from its operations.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
968.66M	747.64M	941.14M	919.08M	901.53M	1.15B
	Gross Profit
471.53M	354.64M	319.08M	368.82M	53.58M	295.36M
	EBIT
-220.15M	-247.94M	-243.92M	-161.59M	-514.47M	-431.86M
	EBITDA
-864.16M	-934.40M	-298.24M	-324.29M	-227.22M	-830.79M
	Net Income Common Stockholders
-939.27M	-961.64M	-347.53M	-403.28M	-581.02M	-1.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
571.47M	595.68M	520.03M	1.10B	736.31M	591.48M
	Total Assets
1.72B	1.53B	1.35B	1.67B	1.41B	1.62B
	Total Debt
541.62M	460.83M	337.21M	416.48M	519.24M	459.80M
	Net Debt
-29.85M	-134.86M	-182.82M	-687.64M	-217.07M	-131.68M
	Total Liabilities
751.85M	757.41M	541.28M	567.15M	657.62M	651.91M
	Stockholders Equity
955.89M	760.00M	758.60M	1.10B	748.00M	971.67M
Cash Flow		Free Cash Flow
0.00	-785.10M	-421.58M	-171.90M	-336.38M	-355.37M
	Operating Cash Flow
0.00	-54.45M	-370.73M	-139.30M	-315.09M	-199.56M
	Investing Cash Flow
0.00	-772.05M	-125.66M	-135.18M	46.05M	-265.69M
	Financing Cash Flow
0.00	902.01M	-91.98M	616.20M	409.36M	602.51M

WHY HOW DO COMPANY,Inc. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price122.00

Price Trends

50DMA

111.40

Positive

100DMA

94.18

Positive

200DMA

61.99

Positive

Market Momentum

MACD

5.04

Positive

RSI

55.16

Neutral

STOCH

32.28

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3823, the sentiment is Positive. The current price of 122 is above the 20-day moving average (MA) of 120.00, above the 50-day MA of 111.40, and above the 200-day MA of 61.99, indicating a bullish trend. The MACD of 5.04 indicates Positive momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 32.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3823.

WHY HOW DO COMPANY,Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2169	75 Outperform	¥12.26B	12.68		4.34%	5.96%	-1.58%
3937	71 Outperform	¥12.41B	14.24		3.95%	6.70%	59.07%
4011	67 Neutral	¥12.58B	76.86		―	25.52%	282.24%
4015	62 Neutral	¥12.49B	42.11		―	130.32%	215.53%
Sector *	61 Neutral	$11.55B	10.41	-6.86%	2.93%	7.50%	-8.30%
3823	49 Neutral	¥12.69B	―		―	45.82%	-6.97%
4382	47 Neutral	¥16.10B	―		―	17.40%	59.85%

* Technology Sector Average

Performance Comparison

JP:3823

WHY HOW DO COMPANY,Inc.

130.00

90.00

225.00%

JP:2169

CDS Co., Ltd.

1,799.00

50.34

2.88%

JP:3937

Ubicom Holdings. Inc.

1,009.00

-182.94

-15.35%

JP:4011

Headwaters Co., Ltd.

3,285.00

-2,590.00

-44.09%

JP:4015

Paycloud Holdings Inc.

805.00

333.00

70.55%

JP:4382

HEROZ, Inc.

1,057.00

-238.00

-18.38%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.