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

• Market Cap: ¥7.94B
• Dividend Yield: N/A
• Average Volume (3M): 490.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 8.68%
• EPS Growth: 13.81%
• Country: JP
• Employees: 92
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -1.36
• Shares Outstanding: 264,729,200
• 10 Day Avg. Volume: 511,290
• 30 Day Avg. Volume: 490,590
• PEG Ratio: -0.52
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: ¥28.00 ▼(-6.67%Downside)

MEDINET Co., Ltd. scores low due to significant financial performance challenges, particularly in revenue and profitability. The technical analysis shows bearish trends, and the valuation is unattractive with a negative P/E ratio. These factors collectively indicate high risk and caution for investors.

MEDINET Co., Ltd. Business Overview & Revenue Model

Company Description

MEDINET Co., Ltd. operates as a contract development and manufacturing organization that provides regenerative medicine and cell therapy solutions in Japan. Its solutions include technical know-how, facilities, systems, materials, professional cell-engineers, and other requirements to conduct immuno-cell therapy. The company also manufactures regenerative medical/investigational and specified cell products. In addition, its value chain solutions include personnel training, facility and equipment design, facility operations and management, preparation of standard operating procedures, logistics network, information system, purchasing and production management, quality management system, quality control and assurance, and technology transfer and process development solutions. Further, the company supports medical institutions, research institutions, and biopharmaceutical companies to conduct immuno-cell therapy. MEDINET Co., Ltd. was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MEDINET Co., Ltd. generates revenue through its cell processing and culturing services, which are utilized in various clinical and therapeutic applications. The company partners with medical institutions and research organizations to provide customized cell therapy solutions, charging fees for its expert processing services. Additionally, MEDINET may earn revenue through licensing agreements and collaborative research projects that leverage its proprietary technologies and expertise in regenerative medicine. The company's earnings are significantly influenced by advancements in biotechnology and the demand for innovative therapeutic solutions in the medical field.

MEDINET Co., Ltd. Financial Statement Overview

Summary

MEDINET Co., Ltd. faces significant financial challenges. Declining revenues, persistent losses, and negative cash flows are major concerns. Although the balance sheet is stable with low debt, these financial issues need addressing 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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
724.63M	768.50M	661.54M	633.67M	683.03M	783.03M
	Gross Profit
128.40M	112.69M	98.25M	127.92M	180.42M	291.38M
	EBIT
-1.39B	-1.35B	-1.43B	-1.33B	-1.08B	-926.12M
	EBITDA
-1.29B	-1.20B	-1.33B	-1.17B	-718.52M	-672.89M
	Net Income Common Stockholders
-1.41B	-1.28B	-1.44B	-1.25B	-843.39M	-842.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.03B	4.65B	4.40B	4.50B	4.10B	3.64B
	Total Assets
6.35B	5.70B	5.63B	6.08B	5.38B	5.25B
	Total Debt
91.32M	781.00K	2.31M	4.30M	7.69M	16.46M
	Net Debt
-5.03B	-4.65B	-4.39B	-4.49B	-4.09B	-3.63B
	Total Liabilities
548.63M	509.27M	590.20M	566.14M	474.95M	442.99M
	Stockholders Equity
5.80B	5.19B	5.04B	5.51B	4.90B	4.81B
Cash Flow		Free Cash Flow
211.20M	-1.33B	-1.35B	-1.20B	-1.01B	-653.01M
	Operating Cash Flow
211.20M	-1.27B	-1.26B	-1.16B	-974.70M	-632.92M
	Investing Cash Flow
0.00	65.14M	3.27M	-20.23M	344.25M	86.20M
	Financing Cash Flow
0.00	1.46B	1.16B	1.58B	1.08B	2.79B

MEDINET Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 30 is above the 20-day moving average (MA) of 29.85, below the 50-day MA of 30.86, and below the 200-day MA of 37.41, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 41.80 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 Negative sentiment for JP:2370.

MEDINET Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4584	55 Neutral	¥13.24B	―		―	109.03%	98.53%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
4588	44 Neutral	¥15.63B	―		―	11.93%	15.04%
2370	41 Neutral	¥7.94B	―		―	8.68%	13.81%
4893	41 Neutral	¥7.62B	―		―	-97.61%	14.80%
4571	40 Underperform	€9.04B	―	-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.