MEDINET Co., Ltd. (2370) AI Stock Analysis

• Market Cap: ¥10.32B
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 8.68%
• EPS Growth: 13.81%
• Country: JP
• Employees: 92
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -1.36
• Shares Outstanding: 264,729,200
• 10 Day Avg. Volume: 1,299,350
• 30 Day Avg. Volume: 2,468,603
• PEG Ratio: 19.20
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 183.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥34.00
• Price Target Upside: -12.82% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: ¥43.00 ▲(10.26%Upside)

MEDINET Co., Ltd.'s stock score is primarily driven by financial performance challenges, with persistent losses and negative cash flows. Technical analysis shows positive momentum, providing some optimism. However, valuation concerns persist due to the negative P/E ratio.

MEDINET Co., Ltd. Business Overview & Revenue Model

Company Description

MEDINET Co., Ltd. (2370) is a company that operates within the biotechnology sector, focusing primarily on the research, development, and commercialization of cellular therapies and regenerative medicine. The company is engaged in the provision of cell processing and storage services, as well as the development of related products and technologies aimed at enhancing healthcare outcomes.

How the Company Makes Money

MEDINET Co., Ltd. generates revenue through multiple streams. Primarily, the company earns money by providing cell processing services, which are essential for regenerative therapies and personalized medicine. This includes the culture, processing, and storage of cells for various medical applications. Additionally, MEDINET collaborates with healthcare institutions and research organizations, offering its expertise and technologies for clinical trials and product development, which contributes to its revenue. The company may also engage in licensing agreements and partnerships to further commercialize its proprietary technologies, thereby expanding its revenue base.

MEDINET Co., Ltd. Financial Statement Overview

Summary

MEDINET Co., Ltd. faces ongoing financial challenges with declining revenues, persistent losses, and negative cash flows. Although the balance sheet is stable with low leverage, profitability and cash flow generation need improvement for long-term viability.

Income Statement

MEDINET Co., Ltd. has faced declining revenue over recent years, with a revenue drop from 783 million in 2020 to 769 million in 2024. The company consistently reports negative EBIT and net income, indicating ongoing operational challenges. Gross profit margin has also decreased, reflecting increased cost pressures. The biotechnology industry often experiences high R&D costs, which can affect profitability.

Balance Sheet

The company maintains a strong equity base with a high equity ratio due to relatively low total liabilities compared to stockholders' equity. Debt levels are minimal, resulting in a low debt-to-equity ratio, which suggests financial stability. However, the declining equity over the years indicates potential risks in maintaining this position.

Cash Flow

Operating cash flow has been consistently negative, reflecting ongoing cash burn. Free cash flow also remains negative, with no clear growth in cash generation capacity. The company relies heavily on financing activities to fund operations, which could pose sustainability risks if external funding becomes less accessible.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	768.50M	661.54M	633.67M	683.03M	783.03M
Gross Profit	112.69M	98.25M	127.92M	180.42M	291.38M
EBITDA	-1.20B	-1.33B	-1.17B	-718.52M	-672.89M
Net Income	-1.28B	-1.44B	-1.25B	-843.39M	-842.01M
Balance Sheet
Total Assets	5.70B	5.63B	6.08B	5.38B	5.25B
Cash, Cash Equivalents and Short-Term Investments	4.65B	4.40B	4.50B	4.10B	3.64B
Total Debt	781.00K	2.31M	4.30M	7.69M	16.46M
Total Liabilities	509.27M	590.20M	566.14M	474.95M	442.99M
Stockholders Equity	5.19B	5.04B	5.51B	4.90B	4.81B
Cash Flow
Free Cash Flow	-1.33B	-1.35B	-1.20B	-1.01B	-653.01M
Operating Cash Flow	-1.27B	-1.26B	-1.16B	-974.70M	-632.92M
Investing Cash Flow	65.14M	3.27M	-20.23M	344.25M	86.20M
Financing Cash Flow	1.46B	1.16B	1.58B	1.08B	2.79B

MEDINET Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2370, the sentiment is Positive. The current price of 39 is below the 20-day moving average (MA) of 39.10, above the 50-day MA of 34.12, and above the 200-day MA of 36.13, indicating a neutral trend. The MACD of 1.30 indicates Positive momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2370.

MEDINET Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	¥355.44B	11.10	-2.99%	2.49%	11.76%	-10.16%
2370	59 Neutral	¥10.32B	―		―	8.68%	13.81%
4584	55 Neutral	¥14.01B	―		―	109.03%	98.53%
4588	48 Neutral	¥15.43B	―		―	11.93%	15.04%
4893	41 Neutral	¥7.53B	―		―	-97.61%	14.80%
4571	40 Underperform	¥9.68B	―	-26.97%	―	-30.46%	39.41%

MEDINET Co., Ltd. Corporate Events

MEDINET Co., Ltd. Reports Financial Challenges in Q1 2024

MEDINET Co., Ltd. reported a decrease in net sales by 17.7% for the first quarter ending December 2024, with a net loss of 345 million yen, indicating financial challenges. Despite a high capital adequacy ratio of 91%, the company did not declare any dividends, highlighting a cautious financial approach amidst declining profits.