M3 (2413) AI Stock Analysis

• Market Cap: ¥1.30T
• Dividend Yield: 1.01%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.97
• Revenue Growth: 33.50%
• EPS Growth: 17.26%
• Country: JP
• Employees: 12,100
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 16.03
• Shares Outstanding: 679,115,800
• 10 Day Avg. Volume: 2,689,370
• 30 Day Avg. Volume: 2,988,500
• PEG Ratio: -2.70
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 4.06
• P/FCF Ratio: 25.43
• 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: ¥2,795.00
• Price Target Upside: 29.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,149.00 ▼(-0.37% Downside)

M3's strong financial performance, characterized by robust revenue growth and solid cash flow management, is the primary driver of its stock score. Technical indicators support a positive trend, though valuation concerns due to a high P/E ratio slightly temper the outlook. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Free Cash Flow

Robust free cash flow and a strong operating cash flow to net income ratio indicate efficient cash conversion. This durable cash generation supports reinvestment, debt flexibility, and shareholder returns, providing resilience across cycles and funding growth initiatives.

Conservative Balance Sheet

Very low leverage and a high equity ratio provide long-term financial flexibility. Conservative capital structure reduces refinancing risk, enables opportunistic M&A or investments, and cushions earnings volatility during sector downturns, supporting stability over months.

High Revenue Growth & Scalable Model

Strong top-line growth combined with a platform that monetizes a large healthcare professional network suggests durable competitive advantages. Recurring subscription and B2B marketing services can scale with member engagement, supporting sustained revenue expansion.

Negative Factors

Declining Return on Equity

A material fall in ROE reflects weaker capital efficiency versus prior years. Persistently lower ROE can signal tougher profit generation on shareholder capital, constraining long-term returns and reducing attractiveness for reinvestment absent margin or growth recovery.

Margin Pressure

Sustained decline in operating and net margins points to rising costs or pricing pressure. If structural, margin compression reduces free cash flow and reinvestment capacity, increasing sensitivity to revenue slowdowns and limiting long-term profitability even with revenue growth.

Moderation in Free Cash Flow Growth

Slower FCF growth due to higher capex can constrain distributable cash and strategic optionality. If elevated investment persists, it will reduce near-term cash available for dividends, buybacks, or M&A, and requires sustained operational improvements to justify the spending.

M3 Business Overview & Revenue Model

Company Description

M3, Inc. provides medical-related services primarily to physicians and other healthcare professionals through Internet. The company operates through five reporting segments: Medical Platform, Evidence Solution, Career Solution, Site Solution, and Overseas. It operates m3.com, a members-only Web site for providing information to the healthcare professionals; MR-kun, where member doctors can independently and continuously receive information on the m3com platform; QOL-kun that provides life support information other than medical information to members; AskDoctors, where registered doctors answer questions about health and illness from the general public; MDLinx for medical professionals in the United States; and Doctorsnetuk, a website that provides developing services for pharmaceutical companies, as well as provides drug information database in France, Germany, and Spain. The company also provides career services for doctors and pharmacists through m3com CAREER. In addition, it engages in the sales activities and marketing operations for pharmaceuticals and medical devices; development, sale, and support business of electronic medical records and medical equipment for medical institutions; survey service for medical professionals; sale and marketing support businesses for pharmaceutical companies, etc. through the Internet; provision of management support and consulting services to medical institutions, and home-visit nursing services; and provision of human resources services for healthcare professionals, as well as operates clinical trial facilities. The company was formerly known as So-netM3, Inc. and changed its name to M3, Inc. in January 2010. M3, Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

M3 generates revenue through multiple streams, primarily by offering subscription-based services and transaction fees for its digital platforms. The company partners with pharmaceutical companies to provide patient recruitment services for clinical trials, which is a significant revenue driver. Additionally, M3 earns income from its advertising services, connecting healthcare professionals with relevant products and services. Key partnerships with healthcare organizations and technology providers further enhance its service offerings and contribute to its financial performance, as they enable M3 to expand its reach and improve service delivery.

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	306.89B	284.90B	238.88B	230.82B	208.16B	169.20B
Gross Profit	203.32B	154.36B	140.53B	135.19B	123.27B	103.40B
EBITDA	52.67B	75.03B	76.75B	80.35B	104.59B	64.08B
Net Income	41.08B	40.48B	45.27B	49.03B	63.84B	37.82B
Balance Sheet
Total Assets	584.60B	581.74B	490.78B	400.64B	345.98B	273.12B
Cash, Cash Equivalents and Short-Term Investments	102.14B	134.93B	179.83B	146.39B	141.22B	115.40B
Total Debt	26.14B	24.42B	31.78B	10.38B	8.30B	9.02B
Total Liabilities	175.49B	168.94B	124.08B	91.13B	82.03B	65.86B
Stockholders Equity	374.30B	378.44B	351.92B	302.63B	257.84B	199.81B
Cash Flow
Free Cash Flow	0.00	45.45B	50.73B	49.54B	48.89B	44.64B
Operating Cash Flow	0.00	51.74B	58.31B	57.11B	52.11B	46.63B
Investing Cash Flow	0.00	-39.15B	-39.46B	-21.93B	-23.41B	3.59B
Financing Cash Flow	0.00	-27.16B	9.43B	-22.84B	-16.37B	-11.62B

M3 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2157.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2413, the sentiment is Negative. The current price of 2157 is above the 20-day moving average (MA) of 2050.85, below the 50-day MA of 2165.19, and above the 200-day MA of 2106.54, indicating a bearish trend. The MACD of -61.03 indicates Positive momentum. The RSI at 29.96 is Positive, neither overbought nor oversold. The STOCH value of 8.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2413.

M3 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2175	76 Outperform	¥143.07B	19.95	―	2.09%	7.27%	13.10%
2413	75 Outperform	¥1.30T	28.25	12.15%	1.01%	33.50%	17.26%
4480	67 Neutral	¥78.14B	48.35	8.79%	―	31.95%	-40.95%
4483	61 Neutral	¥221.76B	36.05	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	49 Neutral	¥65.87B	-152.73	―	0.39%	6.17%	-8918.66%

M3 Corporate Events

M3 Continues Share Buyback, Uses Fraction of ¥20 Billion Authorization

M3, Inc. has disclosed the latest status of its ongoing share repurchase program authorized by its board in May 2025 under Article 459 of Japan’s Companies Act. Between December 1 and December 31, 2025, the company repurchased 160,400 common shares on the Tokyo Stock Exchange via discretionary trades for a total of ¥348.27 million, bringing cumulative buybacks under the current authorization as of December 31, 2025 to 1,760,500 shares for approximately ¥3.65 billion. This remains well within the approved ceiling of up to 20 million shares or ¥20 billion through April 30, 2026, signaling that M3 still has substantial capacity to continue buybacks as a tool for capital allocation and shareholder return, while retaining flexibility to adjust activity depending on market conditions.

The most recent analyst rating on (JP:2413) stock is a Buy with a Yen2760.00 price target. To see the full list of analyst forecasts on M3 stock, see the JP:2413 Stock Forecast page.

M3 Introduces Long-Term Stock Option Incentives to Align Employee and Shareholder Interests

M3, Inc. has approved the issuance of share-based remuneration stock options in the form of share acquisition rights to further align employee incentives with the company’s medium- to long-term performance and strengthen shareholder-oriented management. Under the plan, one employee will receive up to 155 stock acquisition rights, each corresponding to 100 common shares, with no cash payment required and an exercise price of 1 yen per share, exercisable between July 1, 2028 and August 21, 2055; the number of underlying shares may be adjusted in the event of share splits or consolidations, underscoring M3’s use of equity incentives as a tool to retain key talent and support long-term value creation for shareholders.

The most recent analyst rating on (JP:2413) stock is a Buy with a Yen2760.00 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 Update

M3, Inc. announced the repurchase of 149,400 of its own common shares for a total of 358,058,600 yen during November 2025. This move is part of a broader share repurchase program authorized by the Board of Directors, allowing for the repurchase of up to 20 million shares or 20 billion yen, aimed at optimizing capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:2413) stock is a Buy with a Yen2965.00 price target. To see the full list of analyst forecasts on M3 stock, see the JP:2413 Stock Forecast page.

M3, Inc. Updates on Share Repurchase Program

M3, Inc. announced the status of its share repurchase program, which involves buying back its own common shares as per the Companies Act of Japan and its Articles of Incorporation. The company repurchased 196,000 shares for approximately 437 million yen through open market purchases on the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to repurchase up to 20 million shares, with a maximum budget of 20 billion yen, potentially impacting the company’s market positioning and shareholder value.

The most recent analyst rating on (JP:2413) stock is a Hold with a Yen2396.00 price target. To see the full list of analyst forecasts on M3 stock, see the JP:2413 Stock Forecast page.