M3 (2413) AI Stock Analysis

• Market Cap: $1.45T
• Dividend Yield: 0.97%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 35.4
• Beta (1Y): 1.01
• Revenue Growth: 24.91%
• EPS Growth: -6.87%
• Country: JP
• Employees: 12,100
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 17.44
• Shares Outstanding: 679,113,000
• 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: 0.90
• Enterprise Value/Revenue: 4.26
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: 24.82
• 1Y Price Target: $2,716.01
• Price Target Upside: 25.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: ¥2,396.00 ▲(10.44% Upside)

M3's strong financial performance is the most significant factor, supported by robust revenue growth and cash flow management. However, technical indicators suggest short-term bearish momentum, and the high P/E ratio indicates a potentially overvalued stock. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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	42.77B	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: Neutral
• Last Price: 2169.50
• 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:2413, the sentiment is Neutral. The current price of 2169.5 is below the 20-day moving average (MA) of 2228.85, below the 50-day MA of 2273.75, and above the 200-day MA of 1925.53, indicating a neutral trend. The MACD of -32.66 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2413.

M3 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4483	―	¥313.56B	49.34	―	0.33%	29.09%	87.01%
6095	―	¥15.32B	10.15	―	0.65%	-17.86%	133.08%
2413	―	$1.45T	35.37	11.39%	0.97%	24.91%	-6.87%
2175	―	¥117.29B	14.83	―	2.18%	7.27%	13.49%
4480	―	€70.97B	48.83	8.00%	―	34.77%	-46.50%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	―	¥17.78B	-24.30	―	1.55%	-0.58%	-260.22%

M3 Corporate Events

M3, Inc. Updates on Share Repurchase Program

M3, Inc. announced the status of its share repurchase program, which was approved by its Board of Directors in May 2025. During September 2025, the company repurchased 127,800 common shares for approximately 297.98 million yen through open market purchases on the Tokyo Stock Exchange. This initiative is part of a broader strategy to buy back up to 20 million shares, with a maximum budget of 20 billion yen, by April 2026. The repurchase aims to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:2413) stock is a Buy with a Yen2800.00 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 Plan

M3, Inc. announced the repurchase of 227,500 of its own common shares, amounting to 477,926,850 yen, conducted through open market purchases on the Tokyo Stock Exchange in August 2025. This move is part of a larger plan approved by the Board of Directors to buy back up to 20 million shares, with a maximum expenditure of 20 billion yen, aimed at optimizing capital structure and enhancing shareholder value.

The most recent analyst rating on (JP:2413) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on M3 stock, see the JP:2413 Stock Forecast page.

M3, Inc. Finalizes Terms for Stock Options Issuance

M3, Inc. announced the finalization of terms for the issuance of stock options, as decided in their Board of Directors meeting on August 6, 2025. This move involves the issuance of 782 share acquisition rights, priced at 234,800 yen per right, which translates to 2,348 yen per share. This development is expected to impact the company’s financial operations and could influence its market positioning.

The most recent analyst rating on (JP:2413) stock is a Buy with a Yen3000.00 price target. To see the full list of analyst forecasts on M3 stock, see the JP:2413 Stock Forecast page.

M3, Inc. Reports Strong Q2 2025 Earnings Growth

M3, Inc. is a Tokyo Stock Exchange-listed company that operates primarily in the healthcare sector, offering a variety of services to healthcare professionals and institutions, including marketing support, clinical trial assistance, and job placement services. In its latest earnings report for the three months ending June 30, 2025, M3 reported a significant increase in revenue and profits compared to the previous year. The company’s revenue rose by 34.2% to 86,200 million yen, while operating profit increased by 17.0% to 19,777 million yen. This growth was driven by strong performances across several segments, including Medical Platform, Career Solution, and Overseas operations. The Medical Platform segment saw a 20.5% increase in revenue, bolstered by the acquisition of EWEL, Inc., while the Career Solution segment benefited from robust job placement services. Despite some challenges in the Site Solution segment, the overall financial health of the company remains strong. Looking ahead, M3’s management remains optimistic about continued growth, with forecasts indicating further increases in revenue and profits for the fiscal year ending March 31, 2026.

M3, Inc. Announces Share Repurchase Program

M3, Inc. announced the repurchase of 457,600 common shares, amounting to 857,846,050 yen, as part of a broader buyback program approved by its Board of Directors. This move, executed through open market purchases on the Tokyo Stock Exchange, reflects the company’s strategy to enhance shareholder value and optimize its capital structure.

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. Issues Stock Options to Boost Performance and Shareholder Alignment

M3, Inc. has announced the issuance of stock options to its employees and directors of its wholly owned subsidiaries as a strategy to boost motivation and align management with shareholder interests. This initiative is expected to enhance the company’s medium- to long-term performance, reflecting a commitment to shareholder-oriented management and potentially strengthening its position in the healthcare industry.

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. Reports Strong Revenue Growth Amid Decline in Comprehensive Income

M3, Inc. reported a significant increase in revenue for the three months ended June 30, 2025, with a 34.2% year-on-year rise to 86,200 million yen. Despite the revenue growth, the company’s total comprehensive income decreased by 46.2% compared to the previous year. The financial results indicate a strong revenue performance, but the decline in comprehensive income may impact stakeholder confidence. The company has not announced any changes to its dividend forecasts, and the financial outlook for the fiscal year ending March 31, 2026, remains unchanged.

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.