FINDEX Inc. (3649) AI Stock Analysis

• Market Cap: ¥22.03B
• Dividend Yield: 1.75%
• Average Volume (3M): 66.40K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.69
• Revenue Growth: -2.05%
• EPS Growth: -9.92%
• Country: JP
• Employees: 311
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 6.84
• Shares Outstanding: 26,608,800
• 10 Day Avg. Volume: 40,110
• 30 Day Avg. Volume: 66,396
• PEG Ratio: 1.96
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 3.76
• P/FCF Ratio: 11.76
• 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: 79 Outperform
• Price Target: ¥1,052.00 ▲(27.67% Upside)

The score is driven primarily by strong financial quality—high profitability, excellent cash conversion, and a near debt-free balance sheet with solid ROE—tempered by the recent revenue decline. Technicals are supportive with price above key moving averages and positive MACD, while valuation is only moderate given the ~19.77 P/E and ~1.85% dividend yield.

Positive Factors

Cash Generation

Strong cash generation indicates high-quality earnings and provides financial flexibility for investments and shareholder returns.

Balance Sheet Health

A debt-free balance sheet enhances financial stability and reduces risk, allowing for strategic investments without financial strain.

New Business Launch

The launch of a new business in medical data management could drive long-term growth and position FINDEX as a leader in healthcare innovation.

Negative Factors

Revenue Decline

A decline in revenue growth raises concerns about market competitiveness and the ability to sustain long-term growth.

Leadership Change

Leadership changes can disrupt strategic continuity and investor relations, potentially affecting company performance and strategy execution.

Profit Margin Pressure

Pressure on profit margins could limit profitability and impact financial performance, requiring cost management and efficiency improvements.

FINDEX Inc. Business Overview & Revenue Model

Company Description

FINDEX Inc. (3649) is a leading Japanese company specializing in the development and provision of medical information systems. The company focuses on creating software solutions that enhance healthcare operations, including electronic medical records (EMR), medical imaging systems, and other healthcare IT infrastructure. FINDEX Inc. aims to improve efficiency and accuracy within medical facilities by integrating advanced technology with healthcare services.

How the Company Makes Money

FINDEX Inc. generates revenue primarily through the sale and licensing of its proprietary medical software solutions to healthcare providers. The company offers a range of products, including electronic medical records systems, picture archiving and communication systems (PACS), and other healthcare IT solutions. Revenue is derived from upfront software licensing fees and ongoing maintenance and support contracts. Additionally, the company may engage in partnerships or collaborations with healthcare institutions and technology firms to expand its market reach and enhance its product offerings. These strategic alliances can also provide additional revenue streams through joint development projects or co-marketing efforts.

FINDEX Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by high margins (2024 net margin ~20%, EBIT margin ~26%), robust cash conversion (operating cash flow ~2.45x net income), and an exceptionally conservative balance sheet with essentially no leverage and strong ROE (~18%–22%). The main risk is uneven revenue momentum, including a ~3.1% YoY revenue decline in 2024, and some historical free-cash-flow volatility.

Income Statement

Profitability is a clear strength, with consistently high gross margins (~51%–64%) and strong operating profitability, culminating in 2024 net margin near ~20% and EBIT margin ~26%. Earnings have expanded materially versus 2020–2022 as margins improved. The key weakness is growth consistency: revenue was volatile and turned negative in 2024 (down ~3.1% YoY) after prior increases, which raises questions about near-term top-line momentum.

Balance Sheet

The balance sheet is very conservative with essentially no leverage (debt-to-equity ~0.0 in recent years) and a steadily growing equity base. Returns on equity remain strong (~18%–22% over 2021–2024), indicating efficient profitability without relying on debt. The main limitation is that asset growth and returns will be more dependent on organic performance (and the recent revenue dip is a reminder of that), rather than financial leverage.

Cash Flow

Cash generation is strong and improving: 2024 operating cash flow (~¥1.90B) materially exceeds net income (cash generation to earnings ~2.45x), and free cash flow is nearly equal to net income (~0.98x), signaling high-quality earnings. Free cash flow also rebounded sharply in 2024 versus 2023. The weakness is volatility—free cash flow swung meaningfully across prior years (including a decline in 2022 and a large spike in 2019), so predictability is not perfect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.76B	5.84B	5.19B	4.54B	4.97B	4.00B
Gross Profit	3.67B	3.55B	3.33B	2.72B	2.56B	2.12B
EBITDA	1.88B	1.57B	1.78B	1.32B	1.25B	1.03B
Net Income	1.15B	1.16B	1.06B	722.78M	636.03M	430.46M
Balance Sheet
Total Assets	6.88B	6.68B	5.93B	4.98B	4.56B	3.80B
Cash, Cash Equivalents and Short-Term Investments	2.38B	1.73B	2.69B	2.41B	2.17B	2.10B
Total Debt	0.00	0.00	0.00	0.00	20.00M	0.00
Total Liabilities	1.16B	1.08B	1.09B	937.84M	1.04B	723.63M
Stockholders Equity	5.71B	5.60B	4.84B	4.04B	3.51B	3.07B
Cash Flow
Free Cash Flow	0.00	1.87B	559.87M	380.45M	481.05M	281.16M
Operating Cash Flow	0.00	1.90B	842.84M	693.85M	750.35M	542.55M
Investing Cash Flow	0.00	-2.43B	-296.94M	-230.16M	-493.37M	-146.27M
Financing Cash Flow	0.00	-412.54M	-270.49M	-142.02M	-183.34M	-201.96M

FINDEX Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 824.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3649, the sentiment is Negative. The current price of 824 is below the 20-day moving average (MA) of 920.80, below the 50-day MA of 910.24, and above the 200-day MA of 804.86, indicating a neutral trend. The MACD of -14.93 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3649.

FINDEX Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3649	79 Outperform	¥22.03B	18.50	―	1.75%	-2.05%	-9.92%
3939	76 Outperform	¥23.38B	21.05	―	1.39%	9.85%	20.83%
4320	74 Outperform	¥18.79B	11.30	―	4.99%	8.77%	1078.88%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	49 Neutral	¥65.87B	-152.73	―	0.39%	6.17%	-8918.66%
4263	43 Neutral	¥15.62B	-60.93	―	―	39.30%	32.06%

FINDEX Inc. Corporate Events

FINDEX Revamps Board With New Finance and Governance Appointments

FINDEX Inc. has nominated three new directors, including seasoned finance executive Takahiro Yazawa as Director in charge of Finance and Investor Relations, outside director candidate Kyoko Matsuba, and outside director Akane Yui as an Audit & Supervisory Committee member, subject to shareholder approval at the March 26, 2026 annual meeting. By bringing in deep expertise in corporate finance, international capital markets, and global healthcare and digital business, the company aims to strengthen capital market communications, improve capital efficiency, and enhance governance, positioning itself for more robust investor engagement and sustainable long-term growth.

The most recent analyst rating on (JP:3649) stock is a Buy with a Yen1156.00 price target. To see the full list of analyst forecasts on FINDEX Inc. stock, see the JP:3649 Stock Forecast page.

FINDEX Raises Year-End Dividend Forecast, Boosting Shareholder Returns

FINDEX Inc. has revised its dividend forecast for the fiscal year ended December 31, 2025, announcing a year-end dividend increase of ¥5.00 per share to ¥14.00, up from the previously forecast ¥9.00. This revision lifts the projected annual dividend to ¥22.00 per share, also ¥5.00 higher than the earlier guidance, reflecting management’s emphasis on enhancing shareholder returns while still securing internal reserves to fund active business development and reinforce the company’s financial base.

The most recent analyst rating on (JP:3649) stock is a Buy with a Yen1156.00 price target. To see the full list of analyst forecasts on FINDEX Inc. stock, see the JP:3649 Stock Forecast page.

FINDEX Reports Steady Growth in Medical and Government IT Installations as of Year-End 2025

FINDEX Inc. reported preliminary implementation results for its suite of medical and government IT products as of December 31, 2025, showing steady expansion across hospitals, clinics and local governments. Core products such as the Claio data management software, DocuMaker document management system and REMORA electronic medical record platform all recorded net user gains, while the GAP/GAP-screener gaze analyzing perimeter reached 213 shipped units after a notable increase since the previous update. The figures indicate continued penetration of FINDEX’s solutions in university and general hospitals, growth in clinic deployments, and incremental uptake of its DocuMaker Office offering among local governments, underscoring the company’s strengthening presence in Japan’s healthcare and public-sector digitalization market.

The most recent analyst rating on (JP:3649) stock is a Buy with a Yen1156.00 price target. To see the full list of analyst forecasts on FINDEX Inc. stock, see the JP:3649 Stock Forecast page.

FINDEX Inc. Completes Share Repurchase Program

FINDEX Inc. has completed the repurchase of its own shares, acquiring 131,000 common shares for JPY 116,138,700 through the Tokyo Stock Exchange. This repurchase marks the completion of the Board of Directors’ resolution from March 2025, reflecting the company’s strategic financial management and potential impact on shareholder value.

FINDEX Inc. Reports Modest Growth in 2025 Financial Results

FINDEX Inc. reported its consolidated financial results for the first nine months of 2025, showing a modest increase in net sales by 1.5% compared to the previous year. Despite a slight decline in total assets and net assets, the company maintained a strong equity-to-asset ratio of 83.5%, indicating a stable financial position. The company forecasts a slight growth in net sales for the full fiscal year, though a decrease in operating and recurring profits is anticipated, reflecting potential challenges in maintaining profit margins.

FINDEX Inc. Reports Progress on Share Repurchase Program

FINDEX Inc. announced the progress of its share repurchase program, which was authorized by the Board of Directors in March 2025. As of October 31, 2025, the company has repurchased 1,154,100 shares for a total of JPY 883,808,700, reflecting a strategic move to enhance shareholder value and optimize capital structure.

FINDEX Inc. Announces Leadership Change

FINDEX Inc. announced the passing and resignation of Takashi Murakami, the Corporate Officer in charge of Finance & Investor Relations, Business Strategy, on October 29, 2025. This event marks a significant change in the company’s leadership, potentially impacting its strategic operations and investor relations.

FINDEX Inc. Launches Medical Data Platform Business

FINDEX Inc. has been certified as a ‘Certified Medical Information Handling Business Operator’ in Japan and is launching a new ‘Medical Data Platform Business’ within its Health Tech segment. This initiative aims to leverage electronic medical record data for enhanced medical research and development, potentially transforming drug discovery, clinical trials, and healthcare systems. While the immediate financial impact is minimal, the long-term implications are significant, positioning FINDEX as a leader in medical data management and utilization.