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

• Market Cap: ¥9.79B
• Dividend Yield: N/A
• Average Volume (3M): 2.04M
• 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: 40
• Industry: Biotechnology
• EPS (TTM): -1.36
• Shares Outstanding: 264,729,200
• 10 Day Avg. Volume: 4,790,280
• 30 Day Avg. Volume: 2,042,710
• 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: 59 Neutral
• Price Target: ¥43.00 ▲(16.22%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 Japanese company primarily engaged in the biotechnology sector, specializing in the development and commercialization of cell therapy products. The company focuses on regenerative medicine, leveraging advanced cell processing technologies to provide innovative therapeutic solutions. MEDINET's core services include cell culturing and processing for clinical applications, as well as research and development activities aimed at expanding the potential of cell-based therapies.

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
EBITDA	-1.29B	-1.20B	-1.33B	-1.17B	-718.52M	-672.89M
Net Income	-1.41B	-1.28B	-1.44B	-1.25B	-843.39M	-842.01M
Balance Sheet
Total Assets	6.35B	5.70B	5.63B	6.08B	5.38B	5.25B
Cash, Cash Equivalents and Short-Term Investments	5.03B	4.65B	4.40B	4.50B	4.10B	3.64B
Total Debt	91.32M	781.00K	2.31M	4.30M	7.69M	16.46M
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: Positive
• Last Price: 37.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 37 is above the 20-day moving average (MA) of 33.90, above the 50-day MA of 31.90, and above the 200-day MA of 36.59, indicating a bullish trend. The MACD of 2.35 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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 *	64 Neutral	¥343.76B	10.59	-2.88%	2.57%	11.81%	-7.17%
2370	59 Neutral	¥9.79B	―		―	8.68%	13.81%
4584	55 Neutral	¥10.67B	―		―	109.03%	98.53%
4588	45 Neutral	¥15.33B	―		―	11.93%	15.04%
4893	41 Neutral	¥7.10B	―		―	-97.61%	14.80%
4571	40 Underperform	¥9.53B	―	-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.