M3 (2413) AI Stock Analysis

• Market Cap: $1.54T
• Dividend Yield: 0.94%
• Average Volume (3M): 4.16M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.99
• Revenue Growth: 24.91%
• EPS Growth: -6.87%
• Country: JP
• Employees: 12,100
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 17.44
• Shares Outstanding: 679,113,000
• 10 Day Avg. Volume: 3,933,780
• 30 Day Avg. Volume: 4,164,063
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 4.93
• Enterprise Value/Gross Profit: 8.79
• Enterprise Value/Ebitda: 19.69
• 1Y Price Target: $2,468.70
• Price Target Upside: 10.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: ¥2,519.00 ▲(13.16% Upside)

M3's strong financial performance, characterized by robust revenue growth and cash flow management, is the primary driver of its high score. Technical indicators show positive momentum, though the stock is currently overbought. Valuation concerns slightly offset these strengths, as the high P/E ratio suggests potential overvaluation.

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, 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: 2226.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 2226 is above the 20-day moving average (MA) of 2143.85, above the 50-day MA of 2012.26, and above the 200-day MA of 1732.83, indicating a bullish trend. The MACD of 91.04 indicates Negative momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.02 is Positive, 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
2413	78 Outperform	$1.54T	37.16	11.39%	0.94%	24.91%	-6.87%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
3YV	―	€502.04M	55.66	8.00%	―	―	―
4483	76 Outperform	¥279.94B	45.13		0.38%	29.09%	87.01%
2175	73 Outperform	¥136.95B	19.68		1.83%	10.66%	0.41%
6095	69 Neutral	¥15.32B	10.15		0.65%	-17.86%	133.08%
3902	43 Neutral	¥22.46B	4,465.71		1.12%	-0.58%	-260.22%

M3 Corporate Events

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.

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.