Needs Well, Inc. (3992) AI Stock Analysis

• Market Cap: ¥21.13B
• Dividend Yield: 2.18%
• Average Volume (3M): 575.50K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.20
• Revenue Growth: 2.06%
• EPS Growth: -16.53%
• Country: JP
• Employees: 616
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 3.65
• Shares Outstanding: 40,699,200
• 10 Day Avg. Volume: 192,370
• 30 Day Avg. Volume: 575,503
• PEG Ratio: -15.97
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 28.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥607.00 ▲(10.36% Upside)

The overall stock score of 73 reflects strong financial performance driven by robust revenue growth and profitability, balanced by concerns over cash flow. Technical analysis indicates neutral momentum, while valuation suggests potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Needs Well, Inc. Business Overview & Revenue Model

Company Description

Needs Well Inc. engages in the IT service business in Japan. It provides NW Security Police, an in-house information security solution, which prevents unauthorized connection; okta, an integrated authentication service, that manages single sign-on, ID management, access control, etc. on cloud; VOTIRO Disarmer, an email or file sanitization solution; Symantec Web Isolation solutions; MobiControl, a mobile security and device management solutions; and SmartWMS, a warehouse management system. The company also offers IT reengineering services, an in-house system operation improvement consulting and data linkage system construction; WinActor, a business automation robot; SAP Concur, a cloud system for business trip, expense management, and invoice management; HotProfile, a business card management and sales tools; Work AI service, a business AI service; DX Suite, which converts various documents into data; and Speak Analyzer that visualizes communication in various business scenarios, and supports education and bottom-up measures for corporate employees. In addition, it provides system development tools comprising Web performer, a low-code development platform that automatically generates web applications without programming; and 2025 Solutions, an DX promotion solution for financial systems. Needs Well Inc. was incorporated in 1986 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Needs Well, Inc. generates revenue through multiple streams, including direct sales of its health and wellness products via its online platform and retail partnerships. The company also benefits from subscription services that offer customers regular deliveries of its nutritional supplements and personal care items. Additionally, Needs Well, Inc. has established significant partnerships with fitness centers and wellness influencers, which enhance brand visibility and drive sales through co-marketing initiatives. Furthermore, the company may engage in affiliate marketing programs, allowing third-party marketers to earn commissions on sales generated through their referrals, thus expanding its reach and customer base.

Needs Well, Inc. Financial Statement Overview

Summary

Needs Well, Inc. demonstrates strong financial health with robust revenue and profit margins, low leverage, and high equity. However, the current cash flow situation needs careful monitoring to ensure liquidity does not become a constraint.

Income Statement

Strong revenue growth with a 43.6% increase from 2022 to 2023, and a continued rise to 2024. The TTM gross profit margin stands at 22.6%, with a net profit margin of 8.1%, indicating healthy profitability. EBIT and EBITDA margins are robust at 12.3% and 9.9% respectively, showcasing efficient operational management.

Balance Sheet

The company maintains a solid equity base with a high equity ratio of 75% in the TTM period. The debt-to-equity ratio is extremely low at 0.0088, indicating minimal leverage risk and strong financial stability. Return on Equity is impressive at 18.9%, reflecting effective utilization of equity capital.

Cash Flow

Operating cash flow is zero in the TTM period, indicating potential short-term cash challenges. However, historical free cash flow was positive with 401.9 million in 2023. Free cash flow to net income ratio was 49.6% in 2023, showing reasonable cash conversion. The absence of current period free cash flow data limits a comprehensive analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.77B	9.55B	8.76B	6.73B	5.75B	5.36B
Gross Profit	2.18B	2.16B	2.08B	1.56B	1.41B	1.28B
EBITDA	1.37B	1.35B	1.28B	764.80M	608.29M	528.89M
Net Income	775.11M	809.95M	837.30M	499.15M	421.10M	347.98M
Balance Sheet
Total Assets	6.09B	5.65B	5.95B	4.61B	4.36B	3.00B
Cash, Cash Equivalents and Short-Term Investments	2.59B	2.10B	2.52B	2.61B	2.87B	1.78B
Total Debt	32.24M	38.04M	57.52M	0.00	0.00	0.00
Total Liabilities	1.49B	1.42B	2.23B	1.04B	861.31M	765.74M
Stockholders Equity	4.59B	4.22B	3.71B	3.57B	3.50B	2.23B
Cash Flow
Free Cash Flow	0.00	401.90M	946.58M	401.20M	285.38M	402.83M
Operating Cash Flow	0.00	447.46M	978.79M	437.00M	331.42M	431.81M
Investing Cash Flow	0.00	-294.88M	-352.90M	-260.64M	-81.03M	-87.57M
Financing Cash Flow	0.00	-477.80M	-721.00M	-433.34M	838.16M	-112.68M

Needs Well, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 550.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 550 is above the 20-day moving average (MA) of 541.44, above the 50-day MA of 545.29, and above the 200-day MA of 470.72, indicating a bullish trend. The MACD of -2.07 indicates Negative momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.54 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3741	78 Outperform	¥24.96B	19.09	―	4.45%	17.22%	10.53%
4493	76 Outperform	¥20.52B	36.71	―	0.15%	28.56%	-13.56%
3992	73 Outperform	¥21.13B	25.56	―	2.18%	2.06%	-16.53%
3914	67 Neutral	¥14.52B	39.33	―	―	3.19%	-29.94%
5132	64 Neutral	¥25.79B	83.09	―	―	30.06%	125.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Needs Well, Inc. Corporate Events

Needs Well Inc. Revises Financial Forecast Amid Project Delays and Increased Costs

Needs Well Inc. has revised its financial forecast for the fiscal year ending September 30, 2025, due to delays in public-sector projects and increased costs from salary hikes and a new shareholder benefit program. Despite these challenges, the company expects to maintain an ordinary profit margin above 10% and anticipates a year-on-year increase in operating and ordinary profit, excluding the shareholder program’s impact.

The most recent analyst rating on (JP:3992) stock is a Buy with a Yen607.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well, Inc. Meets Prime Market Listing Criteria

Needs Well, Inc. has announced that it meets the Tokyo Stock Exchange’s Prime Market listing maintenance criteria, with a free-float market capitalization of approximately 11.7 billion yen as of the end of September 2025. This achievement indicates the company’s strong market position and compliance with the exchange’s requirements, pending formal approval after the review process.

The most recent analyst rating on (JP:3992) stock is a Buy with a Yen657.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well Inc. to Enhance Governance with New Audit and Supervisory Committee Structure

Needs Well Inc. has announced its decision to transition to a company with an Audit and Supervisory Committee, pending approval at the upcoming shareholders’ meeting in December 2025. This strategic move aims to enhance corporate governance, strengthen the Board’s supervisory function, and enable more effective decision-making, ultimately driving sustainable growth and increased corporate value.

The most recent analyst rating on (JP:3992) stock is a Buy with a Yen657.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well, Inc. Maintains Prime Market Listing Status

Needs Well, Inc. announced that its estimated free-float market capitalization is expected to exceed ¥10 billion, meeting the criteria to maintain its listing on the Tokyo Stock Exchange Prime Market. This development underscores the company’s stable market position and potential for continued growth, which is crucial for investors and stakeholders monitoring its financial health and market performance.

The most recent analyst rating on (JP:3992) stock is a Buy with a Yen598.00 price target. To see the full list of analyst forecasts on Needs Well, Inc. stock, see the JP:3992 Stock Forecast page.

Needs Well Inc. Forms Capital and Business Alliance with Hmcomm Inc.

Needs Well Inc. has announced a transition of its business alliance with Hmcomm Inc. to a capital and business alliance, aiming to strengthen their long-term cooperative relationship. This strategic move involves mutual share acquisition, with Needs Well acquiring Hmcomm’s common stock and Hmcomm receiving treasury shares from Needs Well, enhancing their collaborative efforts in AI and IT solutions. The alliance is expected to contribute to the medium- to long-term improvement of both companies’ performance and corporate value, though its immediate impact on the current fiscal year is minimal.

Needs Well Inc. Reports Steady Growth and Positive Outlook for 2025

Needs Well Inc. reported its consolidated financial results for the nine months ending June 30, 2025, showing a modest increase in net sales by 3% compared to the previous year. Despite a slight decrease in profit attributable to owners of the parent by 5.1%, the company maintains a strong equity ratio of 75.4%, indicating stable financial health. The company forecasts a significant improvement in its full-year financial results, with expectations of an 11% increase in net sales and a 28.8% rise in profit attributable to owners of the parent, reflecting a positive outlook for the fiscal year ending September 30, 2025.