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

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JP:3823

WHY HOW DO COMPANY,Inc.

(TSE/TYO:3823)

Select Model
Rating:44Neutral
Price Target:JPY 33.00â–¼(-2.94% Downside)
Action:reiterated
Date:09/18/26

The score is constrained primarily by weak financial performance: persistent losses, ongoing cash burn, and a notable increase in leverage outweigh improved revenue growth and gross margin progress. Technicals are supportive of an uptrend, but overbought momentum (high RSI) raises near-term risk. Valuation is also pressured because negative earnings (negative P/E) and no stated dividend yield reduce valuation support.

Positive Factors
Revenue GrowthThe 32.5% annual revenue increase indicates stronger commercial momentum after low or negative growth in prior years. If sustained, expanding sales can improve operating leverage, support reinvestment, and provide a foundation for eventually converting scale into more durable earnings.
Negative Factors
Persistent UnprofitabilityPersistent losses show that improved revenue and gross margin have not yet translated into sustainable operating profitability. The sharp 2026 net loss can erode the capital base, limit internally funded investment, and leave the company dependent on a future turnaround that remains unproven.

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

-60%-40%-20%0%20%40%JP:3823-43.33%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 5.36B
Dividend Yield
―
Average Volume (3M)
2.52M
Price to Earnings (P/E)
-4.4
Beta (1Y)
0.69
Revenue Growth
―
EPS Growth
―
Country
Japan
Employees
206
Sector
Technology
Sector Strength
61
Industry
Software - Application

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

Company Description

THE WHY HOW DO COMPANY, Inc., headquartered in Tokyo, Japan, is a multifaceted enterprise that primarily delivers a broad range of services and solutions centered around smartphones and the Internet of Things (IoT). Established in 2004, the firm, whi...

WHY HOW DO COMPANY,Inc. Financial Statement Overview

Summary

Despite a material pickup in revenue growth (+32.5% in 2026) and improved gross margin, the company remains structurally unprofitable with large 2026 losses, consistently negative operating/free cash flow, and a sharp increase in leverage (debt-to-equity ~1.20 vs. ~0.22 prior year). Financial risk is elevated until profitability and cash generation improve.

Income Statement

24Negative

Balance Sheet

38Negative

Cash Flow

20Very Negative
Financial statement breakdown
BreakdownTTMJul 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue2.64B3.50B1.75B747.64M941.14M919.08M
Gross Profit1.43B1.92B889.88M352.50M314.82M334.49M
EBITDA-1.13B-1.14B-732.39M-276.82M-252.34M-113.81M
Net Income-539.80M-1.39B-69.04M-961.64M-347.53M-403.28M
Balance Sheet
Total Assets3.35B5.33B2.47B1.53B1.35B1.67B
Cash, Cash Equivalents and Short-Term Investments1.30B1.55B1.25B595.68M520.03M1.10B
Total Debt1.14B1.86B335.41M460.83M337.21M416.48M
Total Liabilities1.93B3.75B895.31M757.41M541.28M567.15M
Stockholders Equity1.39B1.56B1.55B760.00M758.60M1.10B
Cash Flow
Free Cash Flow-113.30M-761.70M-113.30M-785.10M-396.54M-141.23M
Operating Cash Flow-64.48M-716.90M-64.48M-54.45M-370.73M-139.30M
Investing Cash Flow-24.15M-1.21B-24.15M-772.05M-80.66M-135.18M
Financing Cash Flow740.41M1.88B740.41M902.01M-136.98M616.20M

WHY HOW DO COMPANY,Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price34.00

Price Trends

50DMA35.84Negative
100DMA33.53Positive
200DMA41.38Negative

Market Momentum

MACD-0.86Positive
RSI43.03Neutral
STOCH46.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3823, the sentiment is Negative. The current price of 34.00 is below the 20-day moving average (MA) of 36.65, below the 50-day MA of 35.84, and below the 200-day MA of 41.38, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3823.

WHY HOW DO COMPANY,Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3823 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3826JP:382682OutperformJPY 5.26B11.55―2.73%13.99%-36.97%
JP:5244JP:524480OutperformJPY 7.28B6.57―1.71%5.90%-3.80%
JP:9698JP:969879OutperformJPY 9.93B11.06―4.50%-0.27%9.60%
JP:4168JP:416878OutperformJPY 9.55B8.46―1.97%12.61%49.51%
JP:3804JP:380474OutperformJPY 8.69B7.25―2.46%7.21%-16.99%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:3823JP:382344NeutralJPY 5.36B-4.39――――

* Technology Sector Average

Performance Comparison

-40%-20%0%20%JP:3823JP:3804JP:3826JP:4168JP:5244JP:9698Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3823 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3823WHY HOW DO COMPANY,Inc.34.00-26.00-43.33%
JP:3804System D Inc.448.00-186.85-29.43%
JP:3826System Integrator Corp.477.000.380.08%
JP:4168Yappli, Inc.735.00-218.82-22.94%
JP:5244jig.jp co.,ltd.171.00-110.32-39.22%
JP:9698Creo Co., Ltd.1223.0096.918.61%
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: Sep 17, 2026