FINDEX Inc. (3649) AI Stock Analysis

• Market Cap: ¥23.38B
• Dividend Yield: 1.75%
• Average Volume (3M): 66.40K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.65
• Revenue Growth: -2.05%
• EPS Growth: -9.92%
• Country: JP
• Employees: 311
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 16.35
• Shares Outstanding: 26,608,800
• 10 Day Avg. Volume: 40,110
• 30 Day Avg. Volume: 66,396
• PEG Ratio: 1.72
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 3.73
• P/FCF Ratio: 14.11
• 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): 56.7
• Revenue Forecast (FY): ¥7.00B

• Rating: 73 Outperform
• Price Target: ¥1,039.00 ▲(26.09% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial quality—high profitability, solid cash conversion, and an almost debt-free balance sheet. Offsetting this, technicals are weak with the stock trading below key moving averages and negative MACD, though momentum indicators are approaching oversold levels. Valuation is supportive with a mid-range P/E and a solid dividend yield.

Positive Factors

Near-zero debt and strong solvency

An almost debt-free balance sheet and rising equity materially reduce financial risk and interest burden, preserving optionality. This durability supports capital allocation flexibility for R&D, M&A or dividends and strengthens resilience through economic cycles.

High, stable profitability margins

Sustained high gross and operating margins indicate structural advantages—pricing power, efficient cost structure, or differentiated services—enabling durable cash generation and reinvestment capacity even if top-line growth moderates.

Strong cash generation and FCF alignment

Operating cash consistently covering net income and rising free cash flow reflect high earnings quality and conversion. This sustainable cash generation supports internal funding for growth, capex, dividends or buybacks without reliance on external financing.

Negative Factors

Volatile free cash flow history

Meaningful swings in free cash flow reduce predictability of internally funded investment and shareholder returns. Volatility raises the need for larger liquidity buffers and limits confidence that strong cash conversion will persist through future operational or market stresses.

Uneven revenue growth over cycle

Inconsistent top-line trends indicate demand sensitivity or episodic contract timing, which constrains long-term compounding. Even with strong margins, uneven revenue makes capacity planning, investment pacing, and earnings visibility more challenging for multi-year strategy execution.

Equity dip in 2024 is a watch item

A prior decline in equity, albeit recovered, signals possible capital volatility from earnings, distributions, or accounting items. This episode warrants monitoring as repeated equity erosion could limit strategic flexibility or indicate weaker cushions against future shocks.

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, improving profitability (high gross and operating margins) and re-accelerating revenue growth in the latest year. Balance sheet is exceptionally conservative with effectively no debt, while cash generation is healthy but historically volatile.

Income Statement

Profitability is strong and improving: the latest annual period shows high gross profitability (~65%) and solid net profitability (~21%), with operating profitability also robust (~29%). Revenue has compounded well over the cycle (up from ~4.0B in 2020 to ~6.1B in 2025) and growth re-accelerated in the latest year (about +6% versus near-flat in 2024). The main weakness is some variability in growth (including a contraction in 2022), suggesting demand can be uneven even though margins have held up well.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is effectively zero in recent years and leverage is negligible, which materially reduces financial risk. Equity has grown over time (from ~3.1B in 2020 to ~5.4B in 2025), supporting a stronger capital base. A modest watch item is that equity dipped in 2024 before recovering, but overall solvency remains a clear strength.

Cash Flow

Cash generation is healthy, with free cash flow closely tracking earnings in recent years (roughly at parity in 2024–2025), indicating solid earnings quality. Operating cash flow has generally covered net income by a comfortable margin (well above 1x in 2023–2025), and free cash flow rose sharply after 2022. The key weakness is volatility: free cash flow swung meaningfully across the period (including a steep decline in 2020 and a drop in 2022), which lowers confidence versus more consistently compounding cash flows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.76B	6.11B	5.84B	5.19B	4.54B	4.97B
Gross Profit	3.67B	3.98B	3.55B	3.33B	2.72B	2.56B
EBITDA	1.88B	2.10B	1.57B	1.78B	1.32B	1.25B
Net Income	1.15B	1.26B	1.16B	1.06B	722.78M	636.03M
Balance Sheet
Total Assets	6.88B	6.81B	6.68B	5.93B	4.98B	4.56B
Cash, Cash Equivalents and Short-Term Investments	2.38B	1.68B	1.73B	2.69B	2.41B	2.17B
Total Debt	0.00	0.00	0.00	0.00	0.00	20.00M
Total Liabilities	1.16B	1.34B	1.08B	1.09B	937.84M	1.04B
Stockholders Equity	5.71B	5.44B	5.60B	4.84B	4.04B	3.51B
Cash Flow
Free Cash Flow	0.00	1.62B	1.87B	559.87M	380.45M	481.05M
Operating Cash Flow	0.00	1.65B	1.90B	842.84M	693.85M	750.35M
Investing Cash Flow	0.00	-297.86M	-2.43B	-296.94M	-230.16M	-493.37M
Financing Cash Flow	0.00	-1.41B	-412.54M	-270.49M	-142.02M	-183.34M

FINDEX Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 824.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3649, the sentiment is Positive. The current price of 824 is below the 20-day moving average (MA) of 885.60, below the 50-day MA of 903.31, and below the 200-day MA of 825.72, indicating a bullish trend. The MACD of -3.42 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 91.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3649.

FINDEX Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3939	75 Outperform	¥25.51B	21.61	―	1.39%	9.85%	20.83%
3649	73 Outperform	¥23.38B	18.24	―	1.75%	-2.05%	-9.92%
2413	70 Outperform	¥1.11T	22.42	12.15%	1.01%	33.50%	17.26%
3902	63 Neutral	¥65.55B	227.08	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥256.17B	37.05	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4480	51 Neutral	¥58.33B	58.12	8.79%	―	31.95%	-40.95%

FINDEX Inc. Corporate Events

FINDEX Sets 2026–2030 Growth Plan with Higher Payouts and Stronger Shareholder Focus

FINDEX Inc. has unveiled a five-year Growth Strategy and Shareholder Return Policy covering 2026 to 2030 that significantly upgrades its capital allocation framework. The company will raise its target dividend payout ratio from 30% to 50%, introduce a dividend floor based on an 8.5% Dividend on Equity, and use treasury shares for restricted stock and J-ESOP incentives, signaling a more shareholder-friendly stance while retaining funds for growth investments.

Management plans to prioritize organic expansion in both existing and new businesses, while remaining open to synergistic M&A and optimizing its capital structure to maximize shareholder value. The company has set medium-term financial targets, projecting steady increases in dividends per share from ¥27 in fiscal 2026 to ¥48 in 2030, alongside rising consolidated net sales and operating profit, underscoring its confidence in sustained profit growth and enhanced corporate value.

The most recent analyst rating on (JP:3649) stock is a Buy with a Yen1024.00 price target. To see the full list of analyst forecasts on FINDEX Inc. stock, see the JP:3649 Stock Forecast page.

FINDEX Issues FY2025 Results Presentation With Strong Liability and Copyright Disclaimers

FINDEX Inc. has released an FY2025 financial results presentation framed strictly as informational material and not as a call to action for investors or other stakeholders. The company emphasizes that the contents, including its business plan, are based on information considered reliable at the time of preparation but may involve risks and uncertainties and are not guaranteed for accuracy or completeness.

The presentation further clarifies that FINDEX accepts no responsibility for losses arising from investment decisions made on the basis of its forecasts or target figures and does not commit to updating or revising them. It also underscores that all copyright in the material belongs to the company, restricting any reproduction or distribution without prior written permission and noting that some numerical figures may have been rounded or truncated for presentation purposes.

The most recent analyst rating on (JP:3649) stock is a Buy with a Yen1024.00 price target. To see the full list of analyst forecasts on FINDEX Inc. stock, see the JP:3649 Stock Forecast page.

FINDEX lifts profits, boosts dividends on steady FY2025 growth

FINDEX Inc. reported fiscal 2025 net sales of ¥6,109 million, up 4.6% year on year, with operating profit rising 17.3% to ¥1,790 million and profit attributable to owners of parent increasing 8.1% to ¥1,256 million, signaling improved profitability. Despite a slight decline in total net assets and cash on hand, the company maintained a high equity ratio near 80%, supported robust cash flow from operations, and continued share buybacks that lifted basic earnings per share to ¥50.07.

The company raised its annual dividend for 2025 to ¥22 per share from ¥15 and projects a further increase to ¥27 in 2026, implying a rising payout ratio and a stronger focus on shareholder returns. For 2026, FINDEX forecasts modest growth with net sales of ¥6,209 million and profit attributable to owners of parent of ¥1,302 million, suggesting steady, incremental expansion from a solid earnings base despite only small expected gains in revenues and margins.

The most recent analyst rating on (JP:3649) stock is a Buy with a Yen1024.00 price target. To see the full list of analyst forecasts on FINDEX Inc. stock, see the JP:3649 Stock Forecast page.

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.