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M3 Inc (JP:2413)
:2413

M3 (2413) AI Stock Analysis

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JP

M3

(OTC:2413)

Rating:78Outperform
Price Target:
¥2,280.00
▲(19.69%Upside)
M3's strong financial performance, characterized by robust revenue growth, cash flows, and a conservative balance sheet, is the primary driver of the stock's score. Positive technical indicators further support the stock's performance, though they are moderated by a high valuation that suggests the stock may be expensive compared to its earnings.

M3 (2413) vs. iShares MSCI Japan ETF (EWJ)

M3 Business Overview & Revenue Model

Company DescriptionM3, Inc. (2413) is a Japan-based company primarily engaged in the provision of medical-related services through internet platforms. The company operates in sectors such as medical research, pharmaceuticals, and healthcare information technology. Its core services include medical professionals' online community site 'm3.com', medical-related marketing support services, clinical trial operations, and career support services for healthcare professionals.
How the Company Makes MoneyM3, Inc. generates revenue through a diverse array of streams, primarily focusing on its online platform for healthcare professionals. The company earns income from advertising and marketing support services offered to pharmaceutical companies and other healthcare-related businesses. By leveraging its vast online network of medical professionals, M3 provides targeted marketing solutions, which are a significant revenue driver. Additionally, M3 generates income from facilitating clinical trials through its Contract Research Organization (CRO) services, and through its healthcare staffing and career support services. Strategic partnerships with pharmaceutical and medical companies also contribute to its earnings by enhancing the value proposition of its platform and services.

M3 Financial Statement Overview

Summary
M3 showcases strong financial health with significant revenue growth, robust cash flows, and a conservative balance sheet. While margins have faced some pressure, overall profitability remains solid. The low debt levels and high equity ratio provide a stable foundation for future growth.
Income Statement
85
Very Positive
M3 has demonstrated strong revenue growth with a 19.28% increase from 2024 to 2025. The gross profit margin stands at 54.19% for 2025, indicating efficient cost management. However, there's a slight decrease in EBIT margin to 21.56% from 27.43% in 2022, suggesting increased operational costs. Despite this, the net profit margin of 14.21% in 2025 is robust, though down from previous years, reflecting slight pressure on profitability.
Balance Sheet
82
Very Positive
The company maintains a strong equity position, with an equity ratio of 65.03% in 2025, which indicates financial stability. The debt-to-equity ratio is low at 0.06, showing conservative leverage. Return on equity (ROE) has slightly decreased to 10.70% from 2022's 24.76%, pointing to reduced profitability relative to equity.
Cash Flow
88
Very Positive
Cash flow management is a key strength for M3, with an impressive free cash flow of ¥45.45 billion in 2025. The operating cash flow to net income ratio is strong at 1.28, indicating efficient conversion of income into cash. However, free cash flow growth has moderated, reflecting increased capital expenditures.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue265.21B284.90B238.88B230.82B208.16B169.20B
Gross Profit148.67B154.36B133.18B135.19B123.27B103.40B
EBITDA66.41B75.03B76.75B77.85B73.64B64.08B
Net Income41.20B40.48B45.27B49.03B63.84B37.82B
Balance Sheet
Total Assets577.54B581.74B490.78B400.64B345.98B273.12B
Cash, Cash Equivalents and Short-Term Investments123.70B134.93B149.66B118.32B141.22B115.40B
Total Debt24.47B24.42B31.78B10.38B8.30B9.02B
Total Liabilities165.12B168.94B124.08B91.13B82.03B65.86B
Stockholders Equity378.23B378.44B351.92B302.63B257.84B199.81B
Cash Flow
Free Cash Flow22.60B45.45B50.73B49.54B48.89B44.64B
Operating Cash Flow22.70B51.74B58.31B57.11B52.11B46.63B
Investing Cash Flow-16.11B-39.15B-39.46B-21.93B-23.41B3.59B
Financing Cash Flow-1.47B-27.16B9.43B-22.84B-16.37B-11.62B

M3 Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1905.00
Price Trends
50DMA
1962.88
Negative
100DMA
1831.75
Positive
200DMA
1643.13
Positive
Market Momentum
MACD
-6.23
Positive
RSI
41.05
Neutral
STOCH
18.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2413, the sentiment is Neutral. The current price of 1905 is below the 20-day moving average (MA) of 2027.20, below the 50-day MA of 1962.88, and above the 200-day MA of 1643.13, indicating a neutral trend. The MACD of -6.23 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 18.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2413.

M3 Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥16.95B9.79
0.58%-12.13%291.07%
78
Outperform
$1.31T32.3010.91%1.09%19.26%-10.58%
76
Outperform
¥126.09B20.29
1.98%12.93%-14.83%
75
Outperform
€105.41B46.2712.05%42.90%-16.04%
68
Neutral
¥254.57B42.69
0.41%28.85%26.67%
64
Neutral
¥343.76B10.59-2.88%2.57%11.81%-7.17%
43
Neutral
¥16.89B4,465.71
1.50%-7.98%-181.00%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2413
M3
1,905.00
420.90
28.36%
JP:2175
SMS Co., Ltd.
1,474.00
-462.47
-23.88%
JP:3902
Medical Data Vision Co.Ltd.
430.00
-165.61
-27.81%
JP:4483
JMDC Inc.
3,748.00
616.32
19.68%
JP:6095
MedPeer, Inc.
771.00
177.57
29.92%
JP:4480
Medley
3,215.00
-310.00
-8.79%

M3 Corporate Events

M3, Inc. Affirms Independence Amid Sony’s Stake
Jun 6, 2025

M3, Inc. has announced its relationship with its controlling shareholder, Sony Group Corporation, emphasizing its operational independence despite Sony’s significant ownership stake. The company maintains a policy of engaging in economically rational transactions with Sony, without exclusivity, ensuring autonomy in its business decisions.

The most recent analyst rating on (JP:2413) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on M3 stock, see the JP:2413 Stock Forecast page.

M3, Inc. Announces Share Repurchase Program
Jun 6, 2025

M3, Inc. has announced the repurchase of its own common shares, with a total of 277,500 shares repurchased for 538,486,250 yen between May 3 and May 31, 2025. This move is part of a larger plan approved by the Board of Directors to repurchase up to 20 million shares, valued at a maximum of 20 billion yen, by April 30, 2026. The repurchase is conducted through open market purchases on the Tokyo Stock Exchange, and the company notes that the actual number of shares repurchased may vary based on market conditions.

The most recent analyst rating on (JP:2413) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on M3 stock, see the JP:2413 Stock Forecast page.

M3, Inc. Announces Strategic Share Repurchase to Enhance Capital Efficiency
May 2, 2025

M3, Inc. has announced a strategic decision to repurchase up to 20 million of its own shares, valued at a maximum of 20 billion yen, as part of its resource allocation strategy. This move is aimed at strengthening its resource base and preparing for new business development while responding to the Tokyo Stock Exchange’s call for management that is conscious of capital costs and stock price. The repurchase reflects M3’s commitment to shareholder returns and its focus on improving capital profitability indicators, including Return on Equity (ROE), especially as the impact of the COVID-19 pandemic on earnings has diminished.

M3, Inc. Reports Decline in Fiscal Year 2025 Financial Results
May 2, 2025

M3, Inc. reported a significant decline in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced decreases in net sales and operating profit due to reduced pharmaceutical marketing budgets and the waning impact of COVID-19 projects. Additionally, ordinary profit and profit were further impacted by the absence of dividend income from subsidiaries, although this did not affect the consolidated financial results.

M3, Inc. Reports Increased Revenue but Declining Profits for FY 2025
May 2, 2025

M3, Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 19.3% increase in revenue to 284,900 million yen. Despite the revenue growth, the company experienced a decline in operating profit by 2.2% and profit attributable to owners of the parent by 10.6%. The financial results indicate challenges in maintaining profit margins despite increased revenue, which may impact stakeholder confidence and the company’s strategic positioning in the market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025