M3 (2413) AI Stock Analysis

• Market Cap: $1.29T
• Dividend Yield: 1.11%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.01
• Revenue Growth: 19.26%
• EPS Growth: -10.58%
• Country: JP
• Employees: 12,100
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 11.69
• Shares Outstanding: 679,078,900
• 10 Day Avg. Volume: 2,702,850
• 30 Day Avg. Volume: 2,900,823
• PEG Ratio: -17.38
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.52
• 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: $2,269.71
• Price Target Upside: 19.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: ¥2,095.00 ▲(10.61%Upside)

The overall stock score is driven by strong financial performance, despite some pressures on margins and profitability. Technical analysis indicates short-term weakness, and valuation suggests the stock is priced for significant growth. The absence of earnings call data and corporate events leaves these areas unevaluated.

M3 Business Overview & Revenue Model

Company Description

M3, Inc., headquartered in Japan, operates in the healthcare sector and primarily provides medical-related services and products through its online platforms. The company offers a range of services including medical information platforms for healthcare professionals, clinical trial solutions, and marketing support services for pharmaceutical companies. M3 is renowned for its web-based portal that allows doctors to access up-to-date medical information, clinical trial recruitment services, and pharmaceutical marketing solutions.

How the Company Makes Money

M3, Inc. generates revenue primarily through its online platforms that cater to medical professionals and pharmaceutical companies. The company earns money by providing marketing solutions to pharmaceutical firms, enabling them to reach healthcare professionals effectively through targeted advertising and promotional content on M3's platforms. Additionally, M3 facilitates clinical trial recruitment, charging fees for connecting pharmaceutical companies with qualified healthcare professionals and patients. The company also offers subscription services for access to premium medical content and educational resources for healthcare providers. Strategic partnerships with pharmaceutical companies and healthcare institutions further bolster its revenue streams.

M3 Financial Statement Overview

Summary

M3 showcases strong financial health with significant revenue growth, robust cash flows, and a conservative balance sheet. Margins have faced some pressure, but overall profitability remains solid. Low debt levels and a 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	284.90B	238.88B	230.82B	208.16B	169.20B
Gross Profit	154.36B	133.18B	135.19B	123.27B	103.40B
EBITDA	75.03B	76.75B	77.85B	73.64B	64.08B
Net Income	40.48B	45.27B	49.03B	63.84B	37.82B
Balance Sheet
Total Assets	581.74B	490.78B	400.64B	345.98B	273.12B
Cash, Cash Equivalents and Short-Term Investments	134.93B	149.66B	118.32B	141.22B	115.40B
Total Debt	24.42B	31.78B	10.38B	8.30B	9.02B
Total Liabilities	168.94B	124.08B	91.13B	82.03B	65.86B
Stockholders Equity	378.44B	351.92B	302.63B	257.84B	199.81B
Cash Flow
Free Cash Flow	45.45B	50.73B	49.54B	48.89B	44.64B
Operating Cash Flow	51.74B	58.31B	57.11B	52.11B	46.63B
Investing Cash Flow	-39.15B	-39.46B	-21.93B	-23.41B	3.59B
Financing Cash Flow	-27.16B	9.43B	-22.84B	-16.37B	-11.62B

M3 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1894.00
• 50DMA: Negative
• 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:2413, the sentiment is Positive. The current price of 1894 is below the 20-day moving average (MA) of 1898.30, below the 50-day MA of 1975.91, and above the 200-day MA of 1679.91, indicating a neutral trend. The MACD of -30.49 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 48.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2413.

M3 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6095	81 Outperform	¥16.82B	9.71		0.59%	-12.13%	291.07%
4483	76 Outperform	¥257.86B	41.99		0.41%	28.85%	26.67%
2175	73 Outperform	¥132.09B	20.72		1.89%	12.93%	-14.83%
2413	71 Outperform	$1.29T	31.20	10.91%	1.11%	19.26%	-10.58%
4480	65 Neutral	€101.15B	44.47	12.05%	―	42.90%	-16.04%
Sector *	65 Neutral	¥355.44B	11.10	-2.99%	2.49%	11.76%	-10.16%
3902	43 Neutral	¥20.16B	4,465.71		1.26%	-7.98%	-181.00%

M3 Corporate Events

M3, Inc. Reports Progress on Share Repurchase Program

M3, Inc. has announced the status of its share repurchase program, which was approved by its Board of Directors. The company repurchased 164,300 common shares for approximately 338.6 million yen between June 1 and June 30, 2025, as part of a broader plan to repurchase up to 20 million shares by April 2026. This move is part of M3’s strategic financial management, potentially impacting shareholder value and market perception.

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. Affirms Independence Amid Sony’s Stake

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

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

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

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

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.