Medical Ikkou Group Co., Ltd. (3353) AI Stock Analysis

• Market Cap: ¥10.45B
• Dividend Yield: 3.51%
• Average Volume (3M): 5.09K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.35
• Revenue Growth: 16.73%
• EPS Growth: -16.51%
• Country: JP
• Employees: 1,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 74.35
• Shares Outstanding: 3,770,000
• 10 Day Avg. Volume: 10,430
• 30 Day Avg. Volume: 5,086
• PEG Ratio: 0.82
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 41.09
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥3,288.00 ▲(12.22% Upside)

The overall stock score is primarily driven by strong financial performance, particularly in revenue growth and operational efficiency. However, technical indicators suggest bearish momentum, which could pose short-term risks. The stock's valuation appears attractive with a low P/E ratio and a solid dividend yield, offering potential value for long-term investors.

Positive Factors

Revenue Growth

A 21.3% revenue rise indicates durable demand for the firm's medical devices and services, supporting scale economies and recurring maintenance revenues. Sustained top-line growth improves capacity to fund R&D, expand clinical deployments, and deepen customer relationships over the medium term.

Balance Sheet Solvency

A strong equity ratio and falling debt-to-equity demonstrate lasting solvency and financial flexibility. This positions the company to absorb demand shocks, invest in capital-intensive medical technologies, and access financing on better terms without undermining operations or long-term strategic initiatives.

Improving Gross Margin

Rising gross margin signals durable improvements in cost management or better pricing on higher-value products and services. Sustained margin expansion supports reinvestment in product development and service quality, enhancing competitive differentiation in healthcare equipment and long-term profitability potential.

Negative Factors

Operating Cash Flow Decline

A sharp fall in operating cash flow and a 94.9% drop in free cash flow indicate weakening cash conversion. Persistently lower cash generation can constrain capex, R&D, dividends or debt servicing, forcing reliance on external funding and reducing resilience to cyclical downturns over the medium term.

Low Net Profitability

A low ~2.3% net margin and declining EPS point to limited retained earnings and weak bottom-line conversion. Over time this restricts the firm's ability to self-fund strategic initiatives, weakens returns to shareholders, and leaves little buffer against rising costs or pricing pressure in competitive healthcare markets.

Significant Total Debt

Even with reasonable ratios, material absolute debt raises refinancing and interest-rate risks, particularly if cash flow volatility continues. High debt can limit strategic flexibility for acquisitions or capex in the capital-intensive medical device sector and increase vulnerability to funding cost shifts.

Medical Ikkou Group Co., Ltd. Business Overview & Revenue Model

Company Description

Medical Ikkou Group Co.,Ltd. operates dispensing pharmacies in Japan. The company is also involved in the operation of nursing homes, outpatient nursing care facilities, and home-visit nursing care facilities; wholesale of generic drugs; and rental of real estate properties, as well as invests in listed and unlisted stocks, M&A, etc. It operates 93 dispensing pharmacy stores. The company was founded in 1980 and is headquartered in Tsu, Japan.

How the Company Makes Money

Medical Ikkou Group generates revenue through multiple key streams, including the sale of medical devices and equipment to hospitals and clinics, as well as providing maintenance and support services for their products. The company may also derive income from partnerships with healthcare providers and institutions for the deployment of its technologies in clinical settings. Additionally, revenue can come from research and development collaborations, licensing agreements, and potential government contracts aimed at improving public health initiatives. The company's focus on innovation and quality products enables it to establish long-term relationships with clients, thereby driving consistent revenue growth.

Medical Ikkou Group Co., Ltd. Financial Statement Overview

Summary

Medical Ikkou Group Co., Ltd. demonstrates strong revenue growth and operational efficiency, but faces challenges in net profitability and cash flow management. The balance sheet reflects stability with a healthy equity ratio and manageable debt levels. While the income statement shows a positive growth trajectory, cash flow constraints could impact future financial flexibility.

Income Statement

Medical Ikkou Group Co., Ltd. has shown strong revenue growth with a 21.3% increase from 2024 to 2025. The gross profit margin has improved to 11.6% in 2025 from 11.4% in 2024, indicating better cost management. The EBIT margin also improved to 3.5% in 2025 from 3.9% in 2024, showcasing operational efficiency. However, the net profit margin remained stable at around 2.3%, suggesting room for improvement in net profitability.

Balance Sheet

The company maintains a healthy equity ratio of 41.2% in 2025, reflecting strong solvency. The debt-to-equity ratio decreased to 0.71 in 2025 from 0.72 in 2024, showing effective debt management. ROE was stable at 8.0% in 2025, indicating consistent return on shareholders' equity. However, the total debt level remains significant, which could pose a risk if not managed properly.

Cash Flow

Operating cash flow decreased significantly to ¥1.2 billion in 2025 from ¥4.3 billion in 2024, negatively impacting free cash flow, which dropped by 94.9%. The free cash flow to net income ratio declined, signaling potential cash flow issues relative to earnings. However, the company generated positive free cash flow, indicating some level of operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.66B	48.39B	39.90B	33.90B	33.60B	31.60B
Gross Profit	6.11B	5.61B	4.55B	3.18B	3.61B	3.20B
EBITDA	2.26B	2.73B	2.50B	2.21B	2.41B	2.33B
Net Income	1.09B	1.13B	1.04B	759.60M	852.33M	834.99M
Balance Sheet
Total Assets	37.91B	34.23B	31.66B	27.51B	29.09B	28.55B
Cash, Cash Equivalents and Short-Term Investments	8.60B	6.77B	7.70B	6.44B	7.99B	7.00B
Total Debt	11.43B	10.02B	9.58B	9.12B	11.31B	11.85B
Total Liabilities	22.64B	19.52B	17.82B	14.90B	17.17B	18.07B
Stockholders Equity	14.64B	14.10B	13.24B	12.05B	11.38B	10.48B
Cash Flow
Free Cash Flow	0.00	201.34M	3.95B	960.14M	798.00M	1.33B
Operating Cash Flow	0.00	1.20B	4.28B	1.31B	1.14B	1.82B
Investing Cash Flow	0.00	-1.13B	-3.22B	-477.52M	-215.52M	-1.18B
Financing Cash Flow	0.00	-1.03B	277.76M	-2.37B	64.74M	590.88M

Medical Ikkou Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2930.00
• 50DMA: Positive
• 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:3353, the sentiment is Positive. The current price of 2930 is above the 20-day moving average (MA) of 2906.50, above the 50-day MA of 2763.40, and above the 200-day MA of 2722.31, indicating a bullish trend. The MACD of 74.78 indicates Negative momentum. The RSI at 68.11 is Neutral, neither overbought nor oversold. The STOCH value of 79.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3353.

Medical Ikkou Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7795	73 Outperform	¥9.83B	8.27	―	3.79%	6.83%	41.94%
7670	71 Outperform	¥10.77B	6.00	―	4.15%	-5.07%	13.98%
6554	69 Neutral	¥10.72B	11.48	―	3.90%	13.59%	52.99%
3353	67 Neutral	¥10.45B	10.53	―	3.51%	16.73%	-16.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7490	62 Neutral	¥8.71B	27.61	―	2.23%	3.47%	1062.58%
7066	60 Neutral	¥4.69B	9.94	―	3.64%	-1.69%	-18.95%