Medical Net,Inc. (3645) AI Stock Analysis

• Market Cap: ¥2.67B
• Dividend Yield: 1%
• Average Volume (3M): 13.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 13.89%
• EPS Growth: 82.37%
• Country: JP
• Employees: 289
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 2.40
• Shares Outstanding: 10,773,000
• 10 Day Avg. Volume: 10,010
• 30 Day Avg. Volume: 13,390
• PEG Ratio: 0.03
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -13.32
• 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: 43 Neutral
• Price Target: ¥291.00 ▼(-3.32% Downside)

The overall stock score is primarily impacted by significant financial challenges, including deteriorating profitability and negative cash flows. Technical analysis indicates bearish momentum, and poor valuation metrics further weigh down the score. These factors suggest caution for potential investors.

Positive Factors

Revenue Growth

The company has achieved moderate revenue growth, indicating a positive trend in market demand for its healthcare technology solutions.

Stable Income from Long-term Contracts

Long-term contracts with healthcare organizations ensure a steady revenue stream, enhancing financial stability and predictability.

Diverse Revenue Streams

Multiple revenue streams from software, subscriptions, and consulting services reduce dependency on any single source, supporting financial resilience.

Negative Factors

Negative Cash Flow

Negative cash flows indicate inefficiencies in cash generation, which could limit the company's ability to invest in growth and innovation.

Deteriorating Profitability

Declining profitability metrics, including a negative net profit margin, suggest challenges in maintaining cost efficiency and pricing power.

Rising Leverage

Increasing leverage may strain financial flexibility and increase risk, particularly if cash flow issues persist.

Medical Net,Inc. Business Overview & Revenue Model

Company Description

Medical Net, Inc. provides medical and life related information services through Internet. It operates dental implant treatment, orthodontic and aesthetic dental treatment, and dental comprehensive information sites; and offers dental clinic management support services, as well as dental related enterprise marketing support services. The company also operates medical care, beauty, lifestyle, child support, and mother's support related information sites, such as health care information, pet examination, body net, men's esthetic net, LASIK net, petit plastic surgery popularity ranking information, beauty salon ranking information, cosmetic surgery, beauty information, beauty salon search, men's cosmetic surgery, hair loss and anti-aging popularity ranking, detox and supplement popularity ranking, and beauty school overall ranking sites. In addition, it provides web production and marketing support services. The company was formerly known as Medical Net Communications, Inc. and changed its name to Medical Net, Inc. in December 2016. Medical Net, Inc. was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Medical Net, Inc. generates revenue through multiple streams, including the sale of software licenses, subscription fees for its cloud-based services, and transaction fees from telemedicine consultations. The company also partners with hospitals and healthcare organizations to implement its solutions, often resulting in long-term contracts that provide a stable income. Additionally, Medical Net may earn revenue from consulting services related to system integration and ongoing technical support, further enhancing its financial performance.

Medical Net,Inc. Financial Statement Overview

Summary

Medical Net, Inc. faces significant financial challenges, particularly in profitability and cash flow management. Despite moderate revenue growth, profitability metrics have deteriorated significantly, with negative net profit margins and concerning cash flow inefficiencies.

Income Statement

The company has experienced moderate revenue growth, but profitability metrics have deteriorated significantly. The gross profit margin has decreased, and the net profit margin turned negative in the latest year, indicating challenges in maintaining profitability. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which has increased over the years, indicating rising leverage. The return on equity has dropped significantly, reflecting reduced profitability. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows in the latest year. The free cash flow growth rate is negative, and the ratios of cash flow to net income indicate inefficiencies in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.02B	6.07B	5.25B	4.50B	3.75B	2.90B
Gross Profit	1.99B	1.96B	1.84B	1.78B	1.46B	1.18B
EBITDA	13.38M	113.35M	213.29M	315.84M	570.81M	280.84M
Net Income	-186.20M	-68.15M	5.96M	116.18M	380.10M	129.67M
Balance Sheet
Total Assets	4.13B	4.08B	3.99B	3.47B	3.15B	2.11B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.46B	1.53B	1.52B	1.13B	868.66M
Total Debt	1.35B	1.25B	1.03B	790.83M	773.54M	383.31M
Total Liabilities	2.42B	2.31B	2.06B	1.54B	1.42B	846.98M
Stockholders Equity	1.66B	1.72B	1.91B	1.92B	1.70B	1.24B
Cash Flow
Free Cash Flow	0.00	-212.40M	86.79M	408.50M	340.39M	378.84M
Operating Cash Flow	0.00	-80.86M	119.59M	429.13M	342.55M	391.87M
Investing Cash Flow	0.00	-259.73M	-285.40M	-62.37M	-355.11M	-87.99M
Financing Cash Flow	0.00	219.18M	144.11M	-17.90M	282.23M	-34.03M

Medical Net,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 301.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 301 is below the 20-day moving average (MA) of 301.45, below the 50-day MA of 305.58, and below the 200-day MA of 310.11, indicating a bearish trend. The MACD of -1.70 indicates Negative momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 68.45 is Neutral, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3845	52 Neutral	¥5.58B	―	―	―	-32.32%	-69.96%
3691	46 Neutral	¥4.92B	-46.00	―	―	11.29%	-358.08%
6081	46 Neutral	¥2.93B	-4.01	―	―	-14.76%	22.12%
2459	44 Neutral	¥2.05B	―	―	―	-34.99%	19.36%
3645	43 Neutral	¥2.67B	―	―	1.00%	13.89%	82.37%
3985	42 Neutral	¥2.65B	-10.31	―	―	0.36%	―