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

• Market Cap: ¥9.79B
• Dividend Yield: N/A
• Average Volume (3M): 793.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -0.97%
• EPS Growth: 1.19%
• Country: JP
• Employees: 92
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.53
• Shares Outstanding: 264,729,200
• 10 Day Avg. Volume: 860,940
• 30 Day Avg. Volume: 793,870
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥43.00
• Price Target Upside: 16.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ¥36.00 ▼(-2.70% Downside)

MEDINET Co., Ltd.'s overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative cash flows. The technical analysis suggests a lack of strong momentum, and the valuation is unattractive due to ongoing losses. These factors collectively result in a low overall stock score.

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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	-1.16B	-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: Neutral
• Last Price: 37.00
• 50DMA: Negative
• 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 Neutral. The current price of 37 is below the 20-day moving average (MA) of 37.10, below the 50-day MA of 37.94, and above the 200-day MA of 35.33, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	13.78B	40.67	―	―	120.34%	―
2370	47 Neutral	¥9.79B	―	―	―	-0.97%	1.19%
4588	41 Neutral	15.95B	-6.68	-61.22%	―	-9.04%	2.12%
4893	41 Neutral	7.83B	-11.31	―	―	-96.99%	29.33%
4571	40 Underperform	9.79B	-10.90	―	―	51.72%	-34.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%