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

• Market Cap: ¥14.46B
• Dividend Yield: 2.4%
• Average Volume (3M): 49.94K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.78
• Revenue Growth: 5.93%
• EPS Growth: -36.11%
• Country: JP
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 2.69
• Shares Outstanding: 30,642,600
• 10 Day Avg. Volume: 63,720
• 30 Day Avg. Volume: 49,936
• PEG Ratio: -0.30
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 6.56
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥527.00 ▲(5.19% Upside)

The stock of Medical System Network Co., Ltd. scores well due to its solid financial performance and attractive valuation. While technical indicators suggest a neutral trend, the reasonable P/E ratio and dividend yield enhance its investment appeal. The absence of earnings call data and corporate events limits additional insights.

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

Company Description

Medical System Network Co., Ltd. (4350) is a leading provider of healthcare technology solutions, specializing in the development and management of medical information systems and electronic health records (EHR). The company operates in sectors such as healthcare IT, medical imaging, and telemedicine, offering a range of products and services designed to enhance the efficiency and effectiveness of healthcare delivery. Its core offerings include software solutions for hospitals and clinics, data management services, and integration of medical devices into healthcare workflows.

How the Company Makes Money

Medical System Network Co., Ltd. generates revenue primarily through the sale of its software solutions and services to healthcare institutions. Key revenue streams include licensing fees for its EHR and management systems, subscription fees for cloud-based services, and maintenance contracts for ongoing support and updates. Additionally, the company benefits from partnerships with medical device manufacturers and healthcare providers, which enhance its service offerings and expand its customer base. The growing demand for digitization in healthcare and the increasing need for efficient data management contribute significantly to the company's earnings.

Medical System Network Co., Ltd. Financial Statement Overview

Summary

The company demonstrates solid financial health with consistent revenue growth and stable profitability. The balance sheet is robust 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.07B	122.39B	115.36B	109.55B	106.69B	104.26B
Gross Profit	51.41B	49.60B	47.93B	45.92B	44.43B	42.41B
EBITDA	6.48B	6.42B	6.90B	6.25B	7.05B	7.18B
Net Income	1.17B	1.26B	1.86B	1.61B	2.39B	2.20B
Balance Sheet
Total Assets	71.78B	70.59B	68.15B	66.22B	62.94B	64.45B
Cash, Cash Equivalents and Short-Term Investments	8.74B	8.46B	8.27B	8.14B	8.20B	10.12B
Total Debt	25.01B	29.79B	29.18B	30.52B	29.57B	32.56B
Total Liabilities	55.52B	54.24B	52.93B	51.73B	49.66B	53.26B
Stockholders Equity	16.16B	16.26B	15.17B	14.45B	13.27B	11.17B
Cash Flow
Free Cash Flow	0.00	1.75B	5.62B	3.37B	1.88B	3.68B
Operating Cash Flow	0.00	4.46B	7.72B	4.97B	4.01B	5.21B
Investing Cash Flow	0.00	-3.73B	-3.65B	-2.11B	-2.51B	-1.49B
Financing Cash Flow	0.00	-544.00M	-3.94B	-2.92B	-3.42B	-5.31B

Medical System Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 501.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 501 is above the 20-day moving average (MA) of 479.45, above the 50-day MA of 478.10, and above the 200-day MA of 441.28, indicating a bullish trend. The MACD of 5.00 indicates Negative momentum. The RSI at 65.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.67 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	―	¥19.36B	6.76	―	1.85%	3.70%	37.00%
4350	―	¥14.46B	11.97	―	2.40%	5.93%	-36.11%
3544	―	¥11.21B	15.39	―	1.23%	4.08%	51.63%
7679	―	¥41.28B	9.21	―	1.34%	7.12%	14.14%
2796	―	¥6.16B	―	―	2.61%	15.66%	56.93%
8095	―	¥19.49B	―	―	3.70%	15.00%	-195.87%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.