New Risk • May 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.8b (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Reported Earnings • May 16
Second quarter 2026 earnings released: EPS: JP¥3.67 (vs JP¥6.99 in 2Q 2025) Second quarter 2026 results: EPS: JP¥3.67 (down from JP¥6.99 in 2Q 2025). Revenue: JP¥2.62b (up 3.9% from 2Q 2025). Net income: JP¥139.0m (down 48% from 2Q 2025). Profit margin: 5.3% (down from 11% in 2Q 2025). The decrease in margin was driven by higher expenses. Declared Dividend • May 15
Dividend of JP¥12.00 announced Shareholders will receive a dividend of JP¥12.00. Ex-date: 29th September 2026 Payment date: 24th December 2026 Dividend yield will be 2.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (49% earnings payout ratio) and cash flows (60% cash payout ratio). The dividend has increased by an average of 23% per year over the past 5 years and payments have been stable during that time. Earnings per share has grown by 2.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Feb 16
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at JP¥520. The fair value is estimated to be JP¥425, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.5% over the last year. Earnings per share has grown by 20%. Reported Earnings • Feb 14
First quarter 2026 earnings released: EPS: JP¥7.02 (vs JP¥5.94 in 1Q 2025) First quarter 2026 results: EPS: JP¥7.02 (up from JP¥5.94 in 1Q 2025). Revenue: JP¥2.58b (up 2.9% from 1Q 2025). Net income: JP¥266.0m (up 18% from 1Q 2025). Profit margin: 10% (up from 9.0% in 1Q 2025). The increase in margin was driven by higher revenue. Announcement • Jan 06
Needs Well Inc. to Report Q1, 2026 Results on Feb 12, 2026 Needs Well Inc. announced that they will report Q1, 2026 results on Feb 12, 2026 Reported Earnings • Nov 14
Full year 2025 earnings released: EPS: JP¥23.41 (vs JP¥21.13 in FY 2024) Full year 2025 results: EPS: JP¥23.41 (up from JP¥21.13 in FY 2024). Revenue: JP¥10.0b (up 5.1% from FY 2024). Net income: JP¥887.0m (up 9.6% from FY 2024). Profit margin: 8.8% (up from 8.5% in FY 2024). The increase in margin was driven by higher revenue. Announcement • Nov 11
Needs Well Inc., Annual General Meeting, Dec 23, 2025 Needs Well Inc., Annual General Meeting, Dec 23, 2025. Valuation Update With 7 Day Price Move • Oct 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥514, the stock trades at a trailing P/E ratio of 25.1x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 255% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 24 December 2025. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥612, the stock trades at a trailing P/E ratio of 29.9x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 305% over the past three years. Announcement • Sep 01
Needs Well Inc. to Report Fiscal Year 2025 Results on Nov 11, 2025 Needs Well Inc. announced that they will report fiscal year 2025 results on Nov 11, 2025 Announcement • Aug 19
Needs Well Inc. (TSE:3992) agreed to acquire an unknown minority stake in Hmcomm Inc. (TSE:265A) for ¥50 million. Needs Well Inc. (TSE:3992) agreed to acquire an unknown minority stake in Hmcomm Inc. (TSE:265A) for ¥50 million on August 19, 2025. The consideration consists of treasury shares common equity of Needs Well Inc. having a value of ¥50 million to be issued for common equity of Hmcomm Inc. As part of consideration, ¥50 million is paid towards common equity of Hmcomm Inc. Reported Earnings • Aug 08
Third quarter 2025 earnings released: EPS: JP¥3.64 (vs JP¥4.06 in 3Q 2024) Third quarter 2025 results: EPS: JP¥3.64 (down from JP¥4.06 in 3Q 2024). Revenue: JP¥2.35b (flat on 3Q 2024). Net income: JP¥138.0m (down 10% from 3Q 2024). Profit margin: 5.9% (down from 6.6% in 3Q 2024). Announcement • May 14
Needs Well Inc. to Report Q3, 2025 Results on Aug 06, 2025 Needs Well Inc. announced that they will report Q3, 2025 results on Aug 06, 2025 Declared Dividend • May 14
Dividend increased to JP¥12.00 Dividend of JP¥12.00 is 33% higher than last year. Ex-date: 29th September 2025 Payment date: 24th December 2025 Dividend yield will be 2.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (44% earnings payout ratio) and cash flows (85% cash payout ratio). The dividend has increased by an average of 21% per year over the past 4 years and payments have been stable during that time. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Valuation Update With 7 Day Price Move • Apr 18
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to JP¥466, the stock trades at a trailing P/E ratio of 22.5x. Average trailing P/E is 19x in the Software industry in Japan. Total returns to shareholders of 210% over the past three years. Buy Or Sell Opportunity • Apr 08
Now 33% overvalued Over the last 90 days, the stock has fallen 22% to JP¥336. The fair value is estimated to be JP¥252, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last year. Earnings per share has declined by 13%. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥355, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 19x in the Software industry in Japan. Total returns to shareholders of 121% over the past three years. Announcement • Mar 27
Needs Well Inc. to Report Q2, 2025 Results on May 12, 2025 Needs Well Inc. announced that they will report Q2, 2025 results on May 12, 2025 Reported Earnings • Feb 14
First quarter 2025 earnings released: EPS: JP¥5.94 (vs JP¥6.55 in 1Q 2024) First quarter 2025 results: EPS: JP¥5.94 (down from JP¥6.55 in 1Q 2024). Revenue: JP¥2.51b (up 4.9% from 1Q 2024). Net income: JP¥225.0m (down 10.0% from 1Q 2024). Profit margin: 9.0% (down from 11% in 1Q 2024). The decrease in margin was driven by higher expenses. Announcement • Jan 21
Needs Well Inc. Revises Dividend Guidance for the Fiscal Year Ending September 30, 2025 Needs Well Inc. revised dividend guidance for the fiscal year ending September 30, 2025. For the year, the company expects dividend of JPY 12.00 compared to Previous forecast of JPY 9.00 per share. Reported Earnings • Dec 28
Full year 2024 earnings released: EPS: JP¥21.13 (vs JP¥21.31 in FY 2023) Full year 2024 results: EPS: JP¥21.13 (down from JP¥21.31 in FY 2023). Revenue: JP¥9.55b (up 9.0% from FY 2023). Net income: JP¥809.0m (down 3.3% from FY 2023). Profit margin: 8.5% (down from 9.6% in FY 2023). The decrease in margin was driven by higher expenses. New Risk • Dec 17
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.5% average weekly change). High level of non-cash earnings (24% accrual ratio). Minor Risks Less than 3 years of financial data is available. Market cap is less than US$100m (JP¥14.4b market cap, or US$93.7m). Valuation Update With 7 Day Price Move • Dec 17
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to JP¥377, the stock trades at a trailing P/E ratio of 17.8x. Average trailing P/E is 23x in the Software industry in Japan. Total returns to shareholders of 186% over the past three years. Announcement • Nov 20
Needs Well Inc. to Report Q1, 2025 Results on Feb 12, 2025 Needs Well Inc. announced that they will report Q1, 2025 results on Feb 12, 2025 Reported Earnings • Nov 14
Full year 2024 earnings released: EPS: JP¥21.13 (vs JP¥21.31 in FY 2023) Full year 2024 results: EPS: JP¥21.13 (down from JP¥21.31 in FY 2023). Revenue: JP¥9.55b (up 9.0% from FY 2023). Net income: JP¥809.0m (down 3.3% from FY 2023). Profit margin: 8.5% (down from 9.6% in FY 2023). The decrease in margin was driven by higher expenses. Announcement • Nov 11
Needs Well Inc., Annual General Meeting, Dec 23, 2024 Needs Well Inc., Annual General Meeting, Dec 23, 2024. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥9.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 25 December 2024. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.2%). Announcement • Sep 05
Needs Well Inc. to Report Fiscal Year 2024 Results on Nov 11, 2024 Needs Well Inc. announced that they will report fiscal year 2024 results on Nov 11, 2024 Announcement • Aug 21
Needs Well Inc. Revises Consolidated Earnings Guidance for the Fiscal Year Ending September 30, 2024 Needs Well Inc. revised consolidated earnings guidance for the fiscal year ending September 30, 2024. For the full year, the company expects net sales of JPY 9,660 million compared to previous guidance of JPY 10,720 million, operating profit of JPY 1,212 million compared to previous guidance of JPY 1,440 million, profit attributable to owners of parent of JPY 860 compared to previous guidance of JPY 980 million and profit per share of JPY 22.44 compared to previous guidance of JPY 25.78. Reported Earnings • Aug 13
Third quarter 2024 earnings released: EPS: JP¥4.06 (vs JP¥7.23 in 3Q 2023) Third quarter 2024 results: EPS: JP¥4.06 (down from JP¥7.23 in 3Q 2023). Revenue: JP¥2.34b (down 2.5% from 3Q 2023). Net income: JP¥153.8m (down 45% from 3Q 2023). Profit margin: 6.6% (down from 12% in 3Q 2023). The decrease in margin was primarily driven by higher expenses. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to JP¥260, the stock trades at a trailing P/E ratio of 10.6x. Average trailing P/E is 20x in the Software industry in Japan. Total returns to shareholders of 76% over the past three years. New Risk • Aug 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Less than 3 years of financial data is available. Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.3% average weekly change). Market cap is less than US$100m (JP¥14.0b market cap, or US$93.3m). Announcement • Jun 18
Needs Well Inc. (TSE:3992) announces an Equity Buyback for 600,000 shares, representing 1.47% for ¥200 million. Needs Well Inc. (TSE:3992) announces a share repurchase program. Under the program, the company will repurchase up to 600,000 shares, representing 1.47% of its issued share capital (excluding treasury stock), for a total purchase price of ¥200 million. The purpose of the program is to improve the company's share price, increase future shareholder returns, and implement a flexible capital policy in response to changes in the business environment. The program will continue through September 20, 2024. As of June 1, 2024, the company had 40,699,200 issued shares (excluding treasury stock) and 2,198,214 treasury shares. Announcement • May 18
Needs Well Inc. to Report Q3, 2024 Results on Aug 08, 2024 Needs Well Inc. announced that they will report Q3, 2024 results on Aug 08, 2024 Reported Earnings • May 11
Second quarter 2024 earnings released: EPS: JP¥13.63 (vs JP¥14.46 in 2Q 2023) Second quarter 2024 results: EPS: JP¥13.63 (down from JP¥14.46 in 2Q 2023). Revenue: JP¥2.43b (up 1.3% from 2Q 2023). Net income: JP¥259.0m (down 7.5% from 2Q 2023). Profit margin: 11% (down from 12% in 2Q 2023). The decrease in margin was driven by higher expenses. Declared Dividend • May 11
Dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 27th September 2024 Payment date: 25th December 2024 Dividend yield will be 2.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (28% earnings payout ratio) and cash flows (30% cash payout ratio). The dividend has increased by an average of 21% per year over the past 3 years and payments have been stable during that time. Earnings per share has grown by 3.0% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 10
Needs Well Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending September 30, 2024 Needs Well Inc. provided consolidated earnings guidance for the fiscal year ending September 30, 2024. For the full year, the company expects net sales of JPY 10,720 million, operating profit of JPY 1,440 million, profit attributable to owners of parent of JPY 980 million and profit per share of JPY 51.45. Buy Or Sell Opportunity • Apr 03
Now 21% undervalued Over the last 90 days, the stock has risen 19% to JP¥934. The fair value is estimated to be JP¥1,175, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Announcement • Mar 14
Needs Well Inc. Revises Dividend Guidance for the Fiscal Year Ending September 30, 2024 Needs Well Inc. revised dividend guidance for the fiscal year ending September 30, 2024. For the year, the company expects dividend of JPY 18.00 compared to Previous forecast of JPY 15.00 per share. Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥1,127, the stock trades at a trailing P/E ratio of 23.4x. Average trailing P/E is 24x in the Software industry in Japan. Total returns to shareholders of 277% over the past three years. Buy Or Sell Opportunity • Feb 28
Now 20% undervalued Over the last 90 days, the stock has risen 27% to JP¥926. The fair value is estimated to be JP¥1,163, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Announcement • Feb 15
Needs Well Inc. to Report Q2, 2024 Results on May 09, 2024 Needs Well Inc. announced that they will report Q2, 2024 results on May 09, 2024 Announcement • Nov 17
Needs Well Inc. to Report Q1, 2024 Results on Feb 08, 2024 Needs Well Inc. announced that they will report Q1, 2024 results on Feb 08, 2024 Announcement • Nov 11
Needs Well Inc., Annual General Meeting, Dec 22, 2023 Needs Well Inc., Annual General Meeting, Dec 22, 2023. Announcement • Nov 01
Needs Well Inc. Revises Year-End Dividend Guidance for the Fiscal Year Ending September 30, 2023 Needs Well Inc. revised year-end dividend guidance for the fiscal year ending September 30, 2023. For the year, the company now expects year-end dividend of JPY 13.50 per share against JPY 10.00 per share paid a year ago. Announcement • Sep 21
Needs Well Inc. Revises Year-End Dividend Guidance for the Fiscal Year Ending September 30, 2023 Needs Well Inc. revised year-end dividend guidance for the fiscal year ending September 30, 2023. For the year, the company now expects year-end dividend of JPY 12.50 per share against previous forecast of JPY 11.50 per share. Announcement • Sep 16
Needs Well Inc. Revises Consolidated Earnings Guidance for the Fiscal Year Ending September 30, 2023 Needs Well Inc. revised consolidated earnings guidance for the fiscal year ending September 30, 2023. For the fiscal year, the company expects to report net sales of JPY 9,059 million, operating profit of JPY 1,100 million, ordinary profit of JPY 1,121 million, profit attributable to the owners of parent of JPY 748 million, and profit per share of JPY 37.94, compared with previous guidance of net sales of JPY 9,059 million, operating profit of JPY 1,004 million, ordinary profit of JPY 1,019 million, profit attributable to the owners of parent of JPY 679 million, and profit per share of JPY 34.46. The reasons for revision in figures of the consolidated financial results forecast: Profit is expected to exceed the company's previous forecast announced in the "Notice Regarding Upward Revision to Consolidated Financial Results Forecast" dated March 15, 2023, due to development of new employees into industry- ready personnel at an early stage progressing faster than expected, improved profitability following the expansion of the IT Outsourcing Business, and other factors. Therefore, the Company has revised upward the previous consolidated financial results forecast as detailed above. Announcement • Sep 02
Needs Well Inc. to Report Fiscal Year 2023 Results on Nov 09, 2023 Needs Well Inc. announced that they will report fiscal year 2023 results on Nov 09, 2023 New Risk • Aug 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.3b (US$99.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (9.3% average weekly change). Minor Risk Market cap is less than US$100m (JP¥14.3b market cap, or US$99.4m). Announcement • Jun 16
Needs Well Inc. (TSE:3992) announces an Equity Buyback for 750,000 shares, representing 3.8% for ¥500 million. Needs Well Inc. (TSE:3992) announces a share repurchase program. Under the program, the company will repurchase up to 750,000 shares, representing 3.8% of its issued share capital (excluding treasury stock), for a total purchase price of ¥500 million. The purpose of the program is to improve stock prices and shareholder returns, and to implement a flexible capital policy in response to changes in the business environment. The program will continue through September 22, 2023. As of June 1, 2023, the company had 19,744,142 issued shares (excluding treasury stock) and 594,258 treasury shares. Announcement • May 17
Needs Well Inc. to Report Q3, 2023 Results on Aug 09, 2023 Needs Well Inc. announced that they will report Q3, 2023 results on Aug 09, 2023 Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥969, the stock trades at a trailing P/E ratio of 17.7x. Average trailing P/E is 23x in the Software industry in Japan. Total returns to shareholders of 87% over the past three years. Reported Earnings • Feb 12
First quarter 2023 earnings released: EPS: JP¥16.93 (vs JP¥12.31 in 1Q 2022) First quarter 2023 results: EPS: JP¥16.93 (up from JP¥12.31 in 1Q 2022). Revenue: JP¥2.02b (up 29% from 1Q 2022). Net income: JP¥167.0m (up 34% from 1Q 2022). Profit margin: 8.3% (up from 8.0% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Dec 28
Full year 2022 earnings released: EPS: JP¥49.85 (vs JP¥46.63 in FY 2021) Full year 2022 results: EPS: JP¥49.85 (up from JP¥46.63 in FY 2021). Revenue: JP¥6.73b (up 17% from FY 2021). Net income: JP¥499.0m (up 19% from FY 2021). Profit margin: 7.4% (up from 7.3% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Full year 2022 earnings released: EPS: JP¥49.85 (vs JP¥46.63 in FY 2021) Full year 2022 results: EPS: JP¥49.85 (up from JP¥46.63 in FY 2021). Revenue: JP¥6.73b (up 17% from FY 2021). Net income: JP¥499.0m (up 19% from FY 2021). Profit margin: 7.4% (up from 7.3% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). Executive Officer & Director Keiho Akiyama was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Full year 2022 earnings released: EPS: JP¥49.85 (vs JP¥46.63 in FY 2021) Full year 2022 results: EPS: JP¥49.85 (up from JP¥46.63 in FY 2021). Revenue: JP¥6.73b (up 17% from FY 2021). Net income: JP¥499.0m (up 19% from FY 2021). Profit margin: 7.4% (up from 7.3% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Nov 10
Needs Well Inc., Annual General Meeting, Dec 23, 2022 Needs Well Inc., Annual General Meeting, Dec 23, 2022. Agenda: Annual general meeting. Announcement • Nov 09
Needs Well Inc. to Report Q1, 2023 Results on Feb 10, 2023 Needs Well Inc. announced that they will report Q1, 2023 results on Feb 10, 2023 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 23 December 2022. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). Announcement • Sep 16
Needs Well Inc. (TSE:3992) agreed to acquire BO STUDIO Inc. from Yuki Kawazoe and others for ¥ 750 million. Needs Well Inc. (TSE:3992) agreed to acquire BO STUDIO Inc. from Yuki Kawazoe and others for ¥ 750 million on September 15, 2022. BO STUDIO Inc. generated Total assets of ¥ 83 million, Sales of ¥ 220 million, Operating income of ¥ 30 million, net worth of ¥ 34 million and Net income of ¥ 15 million for the Fiscal year ending September 2021. Execution of share transfer is on October 3, 2022. Announcement • Sep 01
Needs Well Inc. to Report Fiscal Year 2022 Results on Nov 11, 2022 Needs Well Inc. announced that they will report fiscal year 2022 results on Nov 11, 2022 Reported Earnings • Aug 07
Third quarter 2022 earnings released: EPS: JP¥13.03 (vs JP¥10.93 in 3Q 2021) Third quarter 2022 results: EPS: JP¥13.03 (up from JP¥10.93 in 3Q 2021). Revenue: JP¥1.72b (up 19% from 3Q 2021). Net income: JP¥129.0m (up 29% from 3Q 2021). Profit margin: 7.5% (up from 6.9% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • May 26
Needs Well Inc. (TSE:3992) acquired a 18.7% stake in Souken-sys Inc. Needs Well Inc. (TSE:3992) acquired a 18.7% stake in Souken-sys Inc on March 15, 2022. Under the terms, 23,000 shares will be acquired representing 18.7% of stake in Souken-sys
Needs Well Inc. (TSE:3992) completed the acquisition of a 18.7% stake in Souken-sys Inc on March 15, 2022. Announcement • May 18
Needs Well Inc. to Report Q3, 2022 Results on Aug 05, 2022 Needs Well Inc. announced that they will report Q3, 2022 results on Aug 05, 2022 Reported Earnings • May 17
Second quarter 2022 earnings released: EPS: JP¥13.24 (vs JP¥13.28 in 2Q 2021) Second quarter 2022 results: EPS: JP¥13.24. Revenue: JP¥1.69b (up 15% from 2Q 2021). Net income: JP¥134.0m (up 14% from 2Q 2021). Profit margin: 7.9% (down from 8.0% in 2Q 2021). The decrease in margin was driven by higher expenses. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). Executive Officer & Director Keiho Akiyama was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Buying Opportunity • Feb 24
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 3.3%. The fair value is estimated to be JP¥740, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 3.6% per annum over the last 3 years. Announcement • Feb 18
Needs Well Inc. to Report Q2, 2022 Results on May 12, 2022 Needs Well Inc. announced that they will report Q2, 2022 results on May 12, 2022 Reported Earnings • Feb 12
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: EPS: JP¥12.31 (up from JP¥10.45 in 1Q 2021). Revenue: JP¥1.56b (up 16% from 1Q 2021). Net income: JP¥125.0m (up 40% from 1Q 2021). Profit margin: 8.0% (up from 6.6% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Feb 11
Needs Well Inc. (TSE:3992) announces an Equity Buyback for 340,000 shares, representing 3.34% for ¥200 million. Needs Well Inc. (TSE:3992) announces a share repurchase program. Under the program, the company will repurchase up to 340,000 shares, representing 3.34% of its issued share capital (excluding treasury stock), for a total purchase price of ¥200 million. The purpose of the program is to improve stock prices and EPS, and to implement agile capital policies in response to changes in the business environment. The program will continue through August 12, 2022. As of January 31, 2022, the company had 10,167,768 issued shares (excluding treasury stock) and 232 treasury shares. Reported Earnings • Dec 27
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥46.63 (up from JP¥40.88 in FY 2020). Revenue: JP¥5.75b (up 7.2% from FY 2020). Net income: JP¥421.0m (up 21% from FY 2020). Profit margin: 7.3% (up from 6.5% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Reported Earnings • Nov 12
Full year 2021 earnings released: EPS JP¥46.63 (vs JP¥40.88 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥5.75b (up 7.2% from FY 2020). Net income: JP¥421.0m (up 21% from FY 2020). Profit margin: 7.3% (up from 6.5% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 23 December 2021. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.3%). Reported Earnings • Aug 09
Third quarter 2021 earnings released: EPS JP¥10.93 (vs JP¥6.13 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥1.44b (up 14% from 3Q 2020). Net income: JP¥100.0m (up 92% from 3Q 2020). Profit margin: 6.9% (up from 4.1% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • May 14
Second quarter 2021 earnings released: EPS JP¥13.28 (vs JP¥14.14 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: JP¥1.47b (up 5.7% from 2Q 2020). Net income: JP¥117.0m (down 2.5% from 2Q 2020). Profit margin: 8.0% (down from 8.6% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 20
New 90-day low: JP¥650 The company is down 30% from its price of JP¥925 on 20 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 2.0% over the same period. Reported Earnings • Feb 10
First quarter 2021 earnings released The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: JP¥1.35b (down 4.9% from 1Q 2020). Net income: JP¥89.0m (up 51% from 1Q 2020). Profit margin: 6.6% (up from 4.2% in 1Q 2020). The increase in margin was driven by lower expenses. Announcement • Dec 31
Needs Well Inc. to Report Q1, 2021 Results on Feb 08, 2021 Needs Well Inc. announced that they will report Q1, 2021 results on Feb 08, 2021 Reported Earnings • Dec 27
Full year 2020 earnings released: EPS JP¥40.88 The company reported a mediocre full year result with weaker revenues, although earnings were flat and profit margins were improved. Full year 2020 results: Revenue: JP¥5.36b (down 2.8% from FY 2019). Net income: JP¥347.0m (flat on FY 2019). Profit margin: 6.5% (up from 6.3% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Dec 07
New 90-day low: JP¥708 The company is down 5.0% from its price of JP¥745 on 08 September 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 6.0% over the same period. Valuation Update With 7 Day Price Move • Dec 01
Market pulls back on stock over the past week After last week's 18% share price decline to JP¥753, the stock is trading at a trailing P/E ratio of 18.4x, down from the previous P/E ratio of 22.5x. This compares to an average P/E of 39x in the Software industry in Japan. Total returns to shareholders over the past three years are 16%.