Wellnet Corporation
Wellnet Corporation Fundamental Analysis
Wellnet Corporation (2428.T) shows moderate financial fundamentals with a PE ratio of 11.90, profit margin of 9.79%, and ROE of 11.66%. The company generates $10.5B in annual revenue with moderate year-over-year growth of 7.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 2428.T's fundamental strength across five key dimensions:
Efficiency Score
Weak2428.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent2428.T trades at attractive valuation levels.
Growth Score
Excellent2428.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent2428.T maintains a strong and stable balance sheet.
Profitability Score
Weak2428.T struggles to sustain strong margins.
Key Financial Metrics
Is 2428.T Expensive or Cheap?
P/E Ratio
2428.T trades at 11.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2428.T's PEG of -5.60 indicates potential undervaluation.
Price to Book
The market values Wellnet Corporation at 1.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.47 times EBITDA. This signals the market has high growth expectations.
How Well Does 2428.T Make Money?
Net Profit Margin
For every $100 in sales, Wellnet Corporation keeps $9.79 as profit after all expenses.
Operating Margin
Core operations generate 13.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.66 in profit for every $100 of shareholder equity.
ROA
Wellnet Corporation generates $2.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wellnet Corporation generates strong operating cash flow of $4.22B, reflecting robust business health.
Free Cash Flow
Wellnet Corporation generates strong free cash flow of $4.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $221.36 in free cash annually.
FCF Yield
2428.T converts 34.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How 2428.T Stacks Against Its Sector Peers
| Metric | 2428.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.90 | 33.61 | Better (Cheaper) |
| ROE | 11.66% | 1020.00% | Weak |
| Net Margin | 9.79% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 5.65 | Neutral |
| ROA | 2.89% | -291484.00% (disorted) | Weak |
2428.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wellnet Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.83%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
118.81%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
232.21%
Industry Style: Growth, Innovation, High Beta
High Growth