Needs Well, Inc. (3992) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Flect Co., Ltd.

YE Digital Corp.

Ad-Sol Nissin Corp.

Needs Well, Inc.

ISB Corp.

NEOJAPAN, Inc.

Focus Systems Corp.

Uluru Co., Ltd.

Scala, Inc. (Japan)

J-Stream, Inc.

Tecnos Japan Inc.

Why is Needs Well, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.28%

Healthy long term growth as Net Sales has grown by an annual rate of 11.73% and Operating profit at 19.15%
Company has very low debt and has enough cash to service the debt requirements

Positive results in Dec 25

INTEREST COVERAGE RATIO(Q) Highest at 509,987.36
RAW MATERIAL COST(Y) Fallen by -8.04% (YoY)
OPERATING PROFIT(Q) Highest at JPY 443.69 MM

With ROE of 18.02%, it has a very attractive valuation with a 5.12 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 27.98%, its profits have fallen by -15.6%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Needs Well, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Needs Well, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Needs Well, Inc.

27.98%

0.73

45.47%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.73%

EBIT Growth (5y)

19.15%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

2.23

Tax Ratio

35.91%

Dividend Payout Ratio

51.25%

Pledged Shares

Institutional Holding

ROCE (avg)

64.08%

ROE (avg)

17.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.12

EV to EBIT

16.79

EV to EBITDA

15.11

EV to Capital Employed

8.87

EV to Sales

2.10

PEG Ratio

Dividend Yield

ROCE (Latest)

52.84%

ROE (Latest)

18.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 509,987.36

RAW MATERIAL COST(Y)

Fallen by -8.04% (YoY

OPERATING PROFIT(Q)

Highest at JPY 443.69 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.16 %

PRE-TAX PROFIT(Q)

Highest at JPY 420.79 MM

NET PROFIT(Q)

Highest at JPY 266.97 MM

EPS(Q)

Highest at JPY 7.05

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1,704.03 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.44 times

Here's what is working for Needs Well, Inc.

Interest Coverage Ratio

Highest at 509,987.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 443.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.16 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 420.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 266.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 7.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -8.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Needs Well, Inc.

Inventory Turnover Ratio

Lowest at 1,704.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio