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

• Market Cap: ¥8.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 5.44%
• EPS Growth: -2.17%
• Country: JP
• Employees: 92
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.95
• Shares Outstanding: 264,729,300
• 10 Day Avg. Volume: 1,137,840
• 30 Day Avg. Volume: 1,567,416
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥31.00 ▲(6.90% Upside)

The score is held down primarily by very weak financial performance driven by ongoing large losses and deteriorating free cash flow, despite low leverage. Technicals are mixed with modest near-term strength but a still-weak trend signal (negative MACD), and valuation is constrained by losses and lack of dividend support.

Positive Factors

Recurring & diversified revenue streams

MEDINET's mix of hardware sales plus software, maintenance, training and partnership revenue builds recurring income from installed systems. This durable business model increases revenue visibility, supports higher lifetime customer value and cushions hardware cyclicality for months ahead.

Recent top-line growth

Reported FY2025 revenue growth of ~11.8% indicates sustained demand for its imaging and diagnostic solutions. Consistent top-line momentum can enable scale, support R&D investment and help absorb fixed costs, improving the odds of eventual margin recovery if cost structure is addressed.

Conservative leverage profile

A virtually debt-free balance sheet materially reduces solvency and interest-service risk, giving management flexibility to fund operations, pursue strategic partnerships or obtain financing on better terms. This conservatism is a durable buffer while profitability is restored.

Negative Factors

Persistent large losses

Net margin near -168% in FY2025 reflects deep, sustained losses that erode equity and restrict reinvestment capacity. Structural unprofitability suggests issues with pricing, cost base or product mix; absent a credible path to sustained profits, the company will need financing or major operational changes.

Severe cash burn and negative free cash flow

Consistently negative operating and free cash flow, with FY2025 FCF plunging ~780% vs FY2024, indicates losses are translating into real cash outflows. Persistent cash burn depletes reserves, forces external financing and can divert management focus from product execution to fundraising over the medium term.

Eroding margins and shareholder equity

Sharp gross margin decline from ~37% to ~13.5% alongside shareholder equity falling from ~¥5.51B to ~¥3.78B signals weakening pricing power or rising costs. Margin compression and capital erosion reduce investment capacity, worsen returns and increase the likelihood of future funding needs.

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 generates revenue primarily through the sale of its medical imaging systems and diagnostic tools, which are utilized by hospitals and clinics across various healthcare settings. The company also earns income from software solutions that enhance medical workflows and data management. Additional revenue streams include maintenance services, training programs for healthcare staff, and partnerships with healthcare institutions for joint ventures in research and development. Significant collaborations with medical device manufacturers and technology firms further boost its earnings by expanding its market reach and enhancing product offerings.

MEDINET Co., Ltd. Financial Statement Overview

Summary

MEDINET Co., Ltd. faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. Despite a stable balance sheet with low leverage, the company's profitability and cash flow issues are concerning 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	724.63M	810.29M	768.50M	661.54M	633.67M	683.03M
Gross Profit	128.40M	109.72M	82.67M	98.25M	127.92M	180.42M
EBITDA	-1.30B	-1.26B	-1.16B	-1.33B	-1.17B	-718.52M
Net Income	-1.41B	-1.36B	-1.28B	-1.44B	-1.25B	-843.39M
Balance Sheet
Total Assets	6.35B	4.25B	5.70B	5.63B	6.08B	5.38B
Cash, Cash Equivalents and Short-Term Investments	5.03B	3.17B	4.65B	4.40B	4.50B	4.10B
Total Debt	91.32M	0.00	781.00K	2.31M	4.30M	7.69M
Total Liabilities	548.63M	476.50M	509.27M	590.20M	566.14M	474.95M
Stockholders Equity	5.80B	3.78B	5.19B	5.04B	5.51B	4.90B
Cash Flow
Free Cash Flow	211.20M	-1.44B	-1.33B	-1.35B	-1.20B	-1.01B
Operating Cash Flow	211.20M	-1.41B	-1.27B	-1.26B	-1.16B	-974.70M
Investing Cash Flow	0.00	-565.17M	65.14M	3.27M	-20.23M	344.25M
Financing Cash Flow	0.00	-2.55M	1.46B	1.16B	1.58B	1.08B

MEDINET Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 29 is below the 20-day moving average (MA) of 29.50, below the 50-day MA of 30.88, and below the 200-day MA of 33.87, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
4584	55 Neutral	¥11.60B	36.37	―	―	83.60%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4588	50 Neutral	¥44.44B	-18.98	―	―	-9.04%	13.09%
2370	46 Neutral	¥8.47B	-6.22	―	―	5.44%	-2.17%
4891	44 Neutral	¥6.50B	-9.23	―	―	―	―
4893	43 Neutral	¥6.32B	-7.86	―	―	-12.01%	26.66%
4571	40 Underperform	¥10.80B	-13.46	-26.70%	―	172.39%	8.27%

MEDINET Co., Ltd. Corporate Events

MEDINET Co., Ltd. Reports Increased Sales Amidst Financial Challenges

MEDINET Co., Ltd. reported a 5.4% increase in net sales for the fiscal year ending September 2025, despite facing significant operating and ordinary losses. The company’s financial position weakened, with total assets and net assets declining, and cash flows from operating activities showing a substantial deficit, indicating challenges in achieving profitability and maintaining liquidity.

The most recent analyst rating on (JP:2370) stock is a Hold with a Yen34.00 price target. To see the full list of analyst forecasts on MEDINET Co., Ltd. stock, see the JP:2370 Stock Forecast page.