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Needs Well, Inc.
(3992)
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Rating:77Outperform
Price Target:
¥496.00
▼(-11.74% Downside)
Action:Reiterated
Date:08/06/26
The score is primarily driven by strong financial fundamentals—especially the very low leverage and healthy profitability alongside strong revenue growth. This is tempered by a mixed technical picture (price below key moving averages) and a valuation that is reasonable but not clearly cheap, with the dividend yield providing some support.
Positive Factors
Balance-sheet strength
Exceptionally low leverage gives the company durable financial flexibility: it can fund R&D, absorb cyclical downturns, pursue bolt-on M&A or customer investments without heavy refinancing risk, preserving strategic optionality over the next 2–6 months and beyond.
Negative Factors
Margin compression
A clear drift from peak margins suggests structural cost pressure or adverse business mix. If persistent, margin erosion will limit operating leverage benefits from revenue growth and reduce sustainable free cash flow and reinvestment capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Exceptionally low leverage gives the company durable financial flexibility: it can fund R&D, absorb cyclical downturns, pursue bolt-on M&A or customer investments without heavy refinancing risk, preserving strategic optionality over the next 2–6 months and beyond.
Read all positive factors
Needs Well, Inc. (3992) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥18.82B
Dividend Yield2.55%
Average Volume (3M)575.50K
Price to Earnings (P/E)21.6
Beta (1Y)0.90
Revenue Growth7.21%
EPS Growth6.36%
CountryJP
Employees597
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)21.76
Shares Outstanding40,699,200
10 Day Avg. Volume192,370
30 Day Avg. Volume575,503
Financial Highlights & Ratios
PEG Ratio2.17
Price to Book (P/B)4.33
Price to Sales (P/S)2.06
P/FCF Ratio26.28
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Needs Well, Inc. Business Overview & Revenue Model
Company Description
Needs Well Inc., an IT services firm based in Tokyo, Japan, has been providing a diverse range of technology solutions since its establishment in 1986. The company offers essential cybersecurity products such as NW Security Police, its proprietary...
Needs Well, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.47B | 10.03B | 9.55B | 8.76B | 6.73B | 5.75B |
| Gross Profit | 2.39B | 2.18B | 2.07B | 1.99B | 1.54B | 1.39B |
| EBITDA | 1.18B | 1.28B | 1.32B | 1.24B | 730.77M | 606.29M |
| Net Income | 824.01M | 887.11M | 809.95M | 837.30M | 499.15M | 421.10M |
Balance Sheet | ||||||
| Total Assets | 6.47B | 6.51B | 5.65B | 5.95B | 4.62B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.95B | 2.76B | 2.10B | 2.52B | 2.61B | 2.87B |
| Total Debt | 25.01M | 30.30M | 38.04M | 57.52M | 0.00 | 0.00 |
| Total Liabilities | 1.55B | 1.74B | 1.42B | 2.23B | 1.05B | 870.31M |
| Stockholders Equity | 4.91B | 4.76B | 4.22B | 3.71B | 3.57B | 3.50B |
Cash Flow | ||||||
| Free Cash Flow | 785.60M | 785.60M | 415.57M | 964.02M | 433.05M | 330.23M |
| Operating Cash Flow | 795.93M | 795.93M | 447.46M | 978.79M | 437.00M | 331.42M |
| Investing Cash Flow | 217.76M | 217.76M | -294.88M | -352.90M | -260.64M | -81.03M |
| Financing Cash Flow | -349.88M | -349.88M | -477.80M | -721.00M | -433.34M | 838.16M |
Needs Well, Inc. Technical Analysis
Positive
562.00
Price Trends
444.26
Positive
441.37
Positive
489.17
Negative
Market Momentum
7.05
Negative
64.16
Neutral
76.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3992, the sentiment is Positive. The current price of 562 is above the 20-day moving average (MA) of 455.40, above the 50-day MA of 444.26, and above the 200-day MA of 489.17, indicating a neutral trend. The MACD of 7.05 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 76.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3992.
Needs Well, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥23.49B | 20.50 | ― | ― | 21.05% | -2.47% | |
78 Outperform | ¥29.22B | 17.61 | ― | ― | 15.26% | 62.04% | |
77 Outperform | ¥18.82B | 21.60 | ― | 2.26% | 7.21% | 6.36% | |
74 Outperform | ¥35.49B | 23.84 | ― | 3.62% | 10.59% | 10.16% | |
71 Outperform | ¥49.89B | 30.23 | ― | 0.64% | 19.17% | 46.29% | |
63 Neutral | ¥19.56B | -49.46 | ― | ― | 17.69% | -175.52% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:3992
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Needs Well, Inc. Corporate Events
Needs Well Posts Higher Sales but Lower Profits, Confirms Dividend and Full-Year Outlook
Aug 6, 2026
Needs Well Inc. reported consolidated net sales of ¥7,826 million for the nine months ended June 30, 2026, up 5.9% year on year, while operating profit fell 9.8% to ¥842 million and profit attributable to owners of parent declined 10.0% ...
Needs Well Lifts Dividend Forecast with 40th-Anniversary Payout
Jun 15, 2026
Needs Well Inc. has announced an upward revision to its dividend forecast for the fiscal year ending September 30, 2026, raising the projected annual dividend to 14 yen per share. The payout consists of a 12 yen ordinary dividend and a 2 yen comme...
Needs Well Discloses Strong FY2026 Results of Unlisted Parent ODC
May 29, 2026
Needs Well Inc. has disclosed the finalized financial results of its unlisted parent company, ODC Co., Ltd., for the fiscal year ended February 28, 2026, highlighting the parent’s role as a securities management entity with a 42.61% voting r...
Needs Well Posts Lower Interim Profit but Keeps Full-Year Outlook Intact
May 13, 2026
Needs Well Inc. reported consolidated net sales of ¥5,206 million for the six months ended March 31, 2026, a 3.4% year-on-year increase, while operating profit fell 17.1% to ¥608 million and profit attributable to owners of parent declin...
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.