Wellnet Corp. (2428) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Toyo Tec Co., Ltd.

ERI Holdings Co., Ltd.

CELM, Inc.

Firstlogic, Inc.

PROGRIT, Inc.

PHYZ Holdings, Inc.

Wellnet Corp.

KNC Laboratories Co., Ltd.

WDB coco Co., Ltd.

Environment Friendly Holdings Corp.

Tsubota Laboratory, Inc.

Why is Wellnet Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 2.70% over the last 5 years

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 13,806.91
INTEREST(Q) Highest at JPY 2.43 MM
OPERATING PROFIT(Q) Lowest at JPY 335.65 MM

With ROE of 13.27%, it has a very attractive valuation with a 1.70 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 -24.47%, its profits have risen by 54.9% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -24.47% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wellnet Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

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

Is Wellnet Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wellnet Corp.

-23.96%

0.11

31.46%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.70%

EBIT Growth (5y)

15.67%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.58

Sales to Capital Employed (avg)

1.02

Tax Ratio

33.11%

Dividend Payout Ratio

50.38%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

8.46%

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

1.70

EV to EBIT

0.65

EV to EBITDA

0.54

EV to Capital Employed

-0.20

EV to Sales

0.09

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

13.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 32,857.12 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 14.84

-20What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 13,806.91

INTEREST(Q)

Highest at JPY 2.43 MM

OPERATING PROFIT(Q)

Lowest at JPY 335.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.86 %

PRE-TAX PROFIT(Q)

Lowest at JPY 242.57 MM

NET PROFIT(Q)

Lowest at JPY 164.81 MM

EPS(Q)

Lowest at JPY 8.71

Here's what is working for Wellnet Corp.

Cash and Eqv

Highest at JPY 32,857.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 14.84

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 93.09 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Wellnet Corp.

Interest

At JPY 2.43 MM has Grown at 70.48%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 13,806.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 2.43 MM

in the last five periods and Increased by 70.48% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 335.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 12.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 242.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 164.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 8.71

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)