Medical Net,Inc. (3645) AI Stock Analysis

• Market Cap: ¥2.70B
• Dividend Yield: 0.98%
• Average Volume (3M): 40.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 19.56%
• EPS Growth: -906.44%
• Country: JP
• Employees: 289
• Sector: Communication Services
• Sector Strength: 85
• Industry: Internet Content & Information
• EPS (TTM): -20.63
• Shares Outstanding: 10,773,000
• 10 Day Avg. Volume: 42,720
• 30 Day Avg. Volume: 40,673
• PEG Ratio: -0.43
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.62
• 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

• Rating: 62 Neutral
• Price Target: ¥336.00 ▲(9.80%Upside)

The stock score reflects strong revenue growth and stable financial position but is offset by profitability challenges and a negative P/E ratio. Technical indicators suggest neutral to slightly positive trends, but valuation issues and cash flow management need improvement for long-term growth.

Medical Net,Inc. Business Overview & Revenue Model

Company Description

Medical Net, Inc. (3645) is a healthcare-focused company operating within the medical services sector. The company specializes in providing a range of healthcare solutions, including telemedicine services, healthcare consulting, and medical data management. Medical Net, Inc. aims to leverage technology to enhance the accessibility and efficiency of healthcare delivery, providing innovative solutions to both healthcare providers and patients.

How the Company Makes Money

Medical Net, Inc. generates revenue through a multi-faceted business model that includes subscription fees for its telemedicine platform, consultancy fees for healthcare advisory services, and licensing fees for its medical data management solutions. The company partners with healthcare institutions, insurance companies, and independent practitioners to deliver comprehensive healthcare solutions. Additionally, collaborations with technology firms help enhance their service offerings, contributing to revenue growth. Key revenue streams are primarily from its telemedicine services, which provide ongoing subscription-based income, as well as one-time consultancy projects and data management contracts.

Medical Net,Inc. Financial Statement Overview

Summary

Medical Net, Inc. shows strong revenue growth but is facing challenges in profitability and cash flow management. The balance sheet is stable; however, increasing leverage and declining ROE raise concerns. Despite operational cash generation, low net income and cash flow issues need addressing.

Income Statement

The company shows a solid revenue growth trajectory, with a 16.7% increase from 2023 to 2024. However, the net profit margin has significantly decreased due to a sharp decline in net income, affecting overall profitability. Despite this, the company maintains a reasonable gross profit margin, indicating efficient cost management. EBIT and EBITDA margins have suffered, suggesting operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a high equity ratio of 47.8%, indicating strong financial stability. However, the debt-to-equity ratio has increased to 0.54 from the previous year, signaling a rise in leverage, which could pose future risks if not managed properly. The company's ROE has declined significantly, reflecting the drop in net income.

Cash Flow

The cash flow statement indicates a substantial decline in free cash flow, with a negative growth rate of -78.7%, primarily due to a reduction in operating cash flow. The operating cash flow to net income ratio remains positive, suggesting the company's ability to generate cash from operations, but the free cash flow to net income ratio has decreased, highlighting the need for improved cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
5.82B	5.25B	4.50B	3.75B	2.90B	2.92B
	Gross Profit
1.95B	1.84B	1.78B	1.46B	1.18B	972.40M
	EBIT
173.96M	298.28M	379.65M	445.12M	331.27M	106.38M
	EBITDA
78.05M	213.29M	315.84M	570.81M	280.84M	126.80M
	Net Income Common Stockholders
-127.30M	5.96M	116.18M	380.10M	129.67M	79.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.44B	1.53B	1.52B	1.13B	868.66M	605.27M
	Total Assets
4.35B	3.99B	3.47B	3.15B	2.11B	1.74B
	Total Debt
1.14B	1.03B	790.83M	773.54M	383.31M	411.19M
	Net Debt
-305.00M	-498.82M	-727.72M	-360.45M	-485.35M	-194.09M
	Total Liabilities
2.46B	2.06B	1.54B	1.42B	846.98M	730.18M
	Stockholders Equity
1.85B	1.91B	1.92B	1.70B	1.24B	996.49M
Cash Flow		Free Cash Flow
0.00	86.79M	408.50M	340.39M	378.84M	69.56M
	Operating Cash Flow
0.00	119.59M	429.13M	342.55M	391.87M	78.29M
	Investing Cash Flow
0.00	-285.40M	-62.37M	-355.11M	-87.99M	-14.60M
	Financing Cash Flow
0.00	144.11M	-17.90M	282.23M	-34.03M	-497.40M

Medical Net,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 306.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3645, the sentiment is Negative. The current price of 306 is below the 20-day moving average (MA) of 315.11, below the 50-day MA of 309.73, and below the 200-day MA of 317.91, indicating a bearish trend. The MACD of -2.89 indicates Positive momentum. The RSI at 35.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3645.

Medical Net,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3691	63 Neutral	¥4.30B	3,633.15		―	14.51%	84.03%
3645	62 Neutral	¥2.70B	―		0.98%	19.56%	-906.44%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%
3845	54 Neutral	¥2.11B	―		―	-22.04%	-9.95%
3985	51 Neutral	¥2.55B	―		―	-12.25%	-142.67%
2459	41 Neutral	¥1.71B	―		―	-29.86%	-88.54%