Medical System Network Co., Ltd. (4350) AI Stock Analysis

• Market Cap: ¥14.55B
• Dividend Yield: 2.51%
• Average Volume (3M): 61.90K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.79
• Revenue Growth: 5.93%
• EPS Growth: -36.11%
• Country: JP
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 2.69
• Shares Outstanding: 30,642,600
• 10 Day Avg. Volume: 86,860
• 30 Day Avg. Volume: 61,903
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥529.00
• Price Target Upside: 9.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥529.00 ▲(9.98% Upside)

The stock's overall score is driven by solid financial performance and attractive valuation. The company's consistent revenue growth and stable profitability are significant strengths, although recent declines in cash flow and net income margins are areas to watch. The technical analysis suggests a neutral market sentiment, with no strong momentum in either direction.

Medical System Network Co., Ltd. Business Overview & Revenue Model

Company Description

Medical System Network Co., Ltd. (4350) is a Japanese company primarily engaged in the healthcare sector, offering a range of services focused on pharmacy management and related solutions. The company operates a network of pharmacies and provides comprehensive support services for pharmaceutical operations. Its core activities include the management of dispensing pharmacies and the provision of related services such as drug information management, pharmaceutical distribution, and healthcare consulting.

How the Company Makes Money

Medical System Network Co., Ltd. generates revenue primarily through the operation and management of its network of dispensing pharmacies. The company's key revenue streams include the sale of prescription drugs, over-the-counter medications, and health-related products through its pharmacies. Additionally, the company earns income by providing pharmaceutical distribution and logistics services, healthcare consulting, and drug information management solutions. Significant partnerships with healthcare providers, pharmaceutical companies, and other stakeholders in the healthcare sector enhance its service offerings and contribute to its earnings.

Medical System Network Co., Ltd. Financial Statement Overview

Summary

The company demonstrates solid financial health with consistent revenue growth and stable profitability. It maintains a robust balance sheet with moderate leverage and a strong equity position. However, recent declines in free cash flow and net income margins indicate areas for improvement.

Income Statement

The company shows a consistent revenue growth with a positive trajectory, increasing from 104.257 billion to 122.387 billion over five years. Gross and net profit margins have been stable, although the net profit margin slightly declined in the last year. EBIT and EBITDA margins indicate operational efficiency, but there's a slight decrease in EBIT compared to earlier years.

Balance Sheet

The balance sheet reflects a stable equity base, with stockholders' equity increasing from 9.419 billion to 16.26 billion. The debt-to-equity ratio suggests moderate leverage, though slightly elevated compared to industry norms. The equity ratio shows a favorable position, indicating a strong asset base relative to equity.

Cash Flow

Operating cash flow has remained healthy, but a decline is noted in the latest year. Free cash flow shows variability, with a significant reduction recently. The company maintains a positive operating cash flow to net income ratio, indicative of good cash generation relative to profits.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	122.39B	115.36B	109.55B	106.69B	104.26B
Gross Profit	49.60B	47.93B	45.92B	44.43B	42.41B
EBITDA	6.42B	6.90B	6.12B	6.71B	6.43B
Net Income	1.26B	1.86B	1.61B	2.39B	2.20B
Balance Sheet
Total Assets	70.59B	68.15B	66.22B	62.94B	64.45B
Cash, Cash Equivalents and Short-Term Investments	8.46B	8.27B	8.14B	8.20B	10.12B
Total Debt	29.79B	29.18B	30.52B	29.57B	32.56B
Total Liabilities	54.24B	52.93B	51.73B	49.66B	53.26B
Stockholders Equity	16.26B	15.17B	14.45B	13.27B	11.17B
Cash Flow
Free Cash Flow	1.75B	5.62B	3.37B	1.88B	3.68B
Operating Cash Flow	4.46B	7.72B	4.97B	4.01B	5.21B
Investing Cash Flow	-3.73B	-3.65B	-2.11B	-2.51B	-1.49B
Financing Cash Flow	-544.00M	-3.94B	-2.92B	-3.42B	-5.31B

Medical System Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 481.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4350, the sentiment is Positive. The current price of 481 is below the 20-day moving average (MA) of 483.00, above the 50-day MA of 478.94, and above the 200-day MA of 431.09, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 73.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4350.

Medical System Network Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3417	75 Outperform	¥17.38B	6.07		2.09%	3.70%	37.00%
7679	74 Outperform	¥45.78B	10.42		1.21%	6.65%	12.77%
4350	71 Outperform	¥14.55B	12.04		2.51%	5.93%	-36.11%
Sector *	65 Neutral	¥346.28B	11.35	-1.45%	2.36%	9.60%	-12.35%
3544	64 Neutral	¥11.64B	15.20		1.19%	4.87%	62.84%
2796	62 Neutral	¥5.87B	―		2.80%	16.60%	-19.16%
8095	60 Neutral	¥20.70B	8.67		3.52%	12.75%	-191.21%

Medical System Network Co., Ltd. Corporate Events

Medical System Network Co., Ltd. Reports Q1 2025 Financial Results

Medical System Network Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a 5.7% increase in net sales compared to the previous year. However, the company experienced a decline in operating and ordinary profits by 6.1% and 13.6%, respectively, with profit attributable to owners of the parent dropping by 54%. Despite these challenges, the company maintains its dividend forecast for the fiscal year ending March 31, 2026, indicating stability in shareholder returns.