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SUNWELS Co.,Ltd. (JP:9229)
:9229
Japanese Market
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SUNWELS Co.,Ltd. (9229) AI Stock Analysis

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JP:9229

SUNWELS Co.,Ltd.

(9229)

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Neutral 42 (OpenAI - Gpt-5.6Sol)
Rating:42Neutral
Price Target:
¥112.00
▼(-67.35% Downside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by weak financial performance—sharp margin compression, an operating loss, rising leverage with equity erosion, and worsening cash generation (negative operating cash flow and persistent negative free cash flow). Technicals add pressure as the stock remains below key longer-term moving averages despite a short-term rebound. Valuation is constrained by losses (negative P/E) and no dividend yield data to offset risk.
Positive Factors
Revenue Growth
Revenue growth indicates continued demand for SUNWELS’ care services despite weaker profitability. Sustained expansion can support operating scale and provide a foundation for recovery if cost controls improve.
Negative Factors
Severe Margin Compression
The sharp deterioration in gross margin and shift to an operating loss indicate that costs are absorbing much of the company’s revenue growth. Persistent pressure would weaken earnings quality and limit internally funded expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Revenue growth indicates continued demand for SUNWELS’ care services despite weaker profitability. Sustained expansion can support operating scale and provide a foundation for recovery if cost controls improve.
Read all positive factors

SUNWELS Co.,Ltd. (9229) vs. iShares MSCI Japan ETF (EWJ)

SUNWELS Co.,Ltd. Business Overview & Revenue Model

Company Description
Sunwels Co., Ltd. primarily delivers nursing care services, with its operations prominently featuring the "PD house" model. The company runs specialized residential facilities for seniors diagnosed with Parkinson's disease and also manages a Kaats...
How the Company Makes Money
SUNWELS primarily earns revenue by operating care service facilities and providing long-term care services, receiving payments tied to service usage. Key revenue streams likely include fees and reimbursements associated with providing care under J...

SUNWELS Co.,Ltd. Financial Statement Overview

Summary
Financial health is weak: profitability deteriorated sharply with gross margin falling to ~9.8% in FY2026 and the business shifting to an operating loss. Leverage is high and rising (debt-to-equity ~4.18 in FY2026) as equity declined. Cash generation also worsened, with operating cash flow turning negative in FY2026 and consistently negative free cash flow across all years shown, increasing funding and liquidity risk.
Income Statement
28
Negative
Balance Sheet
24
Negative
Cash Flow
22
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue28.83B28.14B26.50B20.11B13.24B8.17B
Gross Profit2.74B2.76B4.89B5.13B3.24B1.60B
EBITDA2.01B1.88B1.88B3.15B1.52B573.94M
Net Income-1.49B-1.66B-925.00M802.00M303.60M10.65M
Balance Sheet
Total Assets45.05B45.63B39.44B31.74B19.30B9.10B
Cash, Cash Equivalents and Short-Term Investments3.93B4.09B5.64B3.31B2.61B814.76M
Total Debt29.03B29.11B22.49B20.11B11.20B6.60B
Total Liabilities38.63B38.66B30.82B26.54B14.69B8.52B
Stockholders Equity6.42B6.97B8.62B5.20B4.61B580.80M
Cash Flow
Free Cash Flow0.00-1.50B-2.32B-2.93B-740.86M-73.95M
Operating Cash Flow0.00-332.00M1.88B2.56B1.14B378.19M
Investing Cash Flow0.00-1.27B-4.40B-5.66B-2.04B-633.05M
Financing Cash Flow0.0062.00M4.84B3.80B2.70B573.26M

SUNWELS Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price343.00
Price Trends
50DMA
128.98
Negative
100DMA
157.45
Negative
200DMA
248.72
Negative
Market Momentum
MACD
-3.62
Negative
RSI
41.74
Neutral
STOCH
22.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9229, the sentiment is Negative. The current price of 343 is above the 20-day moving average (MA) of 115.60, above the 50-day MA of 128.98, and above the 200-day MA of 248.72, indicating a bearish trend. The MACD of -3.62 indicates Negative momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 22.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9229.

SUNWELS Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥3.16B7.162.82%5.48%13.46%
56
Neutral
¥2.55B30.042.56%-5.72%-73.78%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
¥5.50B53.404.07%4.85%-85.27%
46
Neutral
¥4.03B12.091.41%14.91%-39.00%
42
Neutral
¥4.02B-2.517.33%16.03%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9229
SUNWELS Co.,Ltd.
115.00
-617.00
-84.29%
JP:2373
Care Twentyone Corporation
416.00
10.75
2.65%
JP:2425
Care Service Co., Ltd.
668.00
-117.44
-14.95%
JP:7061
Japan Hospice Holdings Inc.
472.00
-809.94
-63.18%
JP:9220
FB CARE SERVICE CO.,LTD.
1,300.00
156.87
13.72%

SUNWELS Co.,Ltd. Corporate Events

Sunwels Names Former Health Ministry Official as President to Rebuild Trust
Aug 12, 2026
Sunwels Co., Ltd. has appointed Toshihiko Atarashi as President and Representative Director, signaling a leadership shift aimed at restoring trust and strengthening governance. Atarashi brings extensive experience from the Ministry of Health, Labo...
SUNWELS Narrows Quarterly Losses on Higher Sales but Keeps Zero-Dividend Outlook
Aug 12, 2026
SUNWELS reported non-consolidated net sales of ¥7,298 million for the three months ended June 30, 2026, up 10.5% year on year, while remaining loss-making with an operating loss of ¥347 million and a net loss of ¥557 million, improv...
SUNWELS Details Transactions and Governance Measures Involving Controlling Shareholder
Jun 23, 2026
SUNWELS Co., Ltd. disclosed matters related to its controlling shareholder, President and Representative Director Ryotatsu Nawashiro, who holds a combined 53.70% voting interest through direct and indirect ownership. The company detailed recent tr...
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: Jul 01, 2026