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

• Market Cap: ¥10.54B
• Dividend Yield: 3.51%
• Average Volume (3M): 5.09K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.34
• Revenue Growth: 16.73%
• EPS Growth: -16.51%
• Country: JP
• Employees: 1,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 74.34
• 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: ¥3,309.00 ▲(12.94% Upside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

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

Strong revenue growth

Sustained ~21.3% top-line growth indicates expanding demand or market share in core operations. Durable revenue momentum provides scale benefits, supports reinvestment in services and capacity, and creates a multi-quarter runway to convert growth into higher operating profit and strategic initiatives.

Improving gross margin

A rising gross margin, even modest, points to better cost control or modest pricing power. Improved unit economics at the gross level is durable—helping convert revenue growth into sustainable EBIT over time and providing a buffer versus input cost swings or competitive pricing pressure.

Solid solvency metrics

A 41.2% equity ratio and a D/E around 0.71 reflect a conservative capital structure and solvency. This durable balance sheet strength increases financial flexibility to fund expansion, absorb shocks, access debt markets on reasonable terms, and limits bankruptcy risk over the medium term.

Negative Factors

Weak cash generation

A dramatic drop in operating cash flow and a 94.9% decline in free cash flow materially reduces internal funding for capex, debt service, and dividends. If cash conversion stays impaired, the company may rely on external financing, constraining strategic choices and raising liquidity risk over coming quarters.

Low net profitability

A net margin near 2.3% is narrow, leaving little buffer for cost increases or pricing pressure. Persistently low net profitability limits retained earnings, weakens the ability to self-fund expansion, and makes returns highly sensitive to small margin shocks, reducing long-term resilience.

Significant absolute debt

Although ratios look manageable, the company notes total debt is significant. High absolute debt increases interest and refinancing exposure, can strain cash flow if earnings or OCF falter, and reduces strategic flexibility to pursue acquisitions or aggressive investment without raising funding costs.

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	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
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: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 3016.72, below the 50-day MA of 2934.48, and above the 200-day MA of 2789.72, indicating a bullish trend. The MACD of 46.75 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 16.34 is Positive, 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
7509	77 Outperform	¥7.35B	5.20	―	3.35%	7.25%	-11.62%
2462	75 Outperform	¥30.99B	13.37	―	3.90%	5.66%	-10.44%
7119	69 Neutral	¥15.02B	13.90	―	2.71%	2.13%	135.50%
3353	67 Neutral	¥10.54B	10.62	―	3.51%	16.73%	-16.51%
9248	67 Neutral	¥15.02B	5.69	―	3.88%	15.50%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6838	52 Neutral	¥7.37B	26.19	―	0.72%	―	―