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

• Market Cap: ¥15.33B
• Dividend Yield: 2.32%
• Average Volume (3M): 49.94K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.74
• Revenue Growth: 6.60%
• EPS Growth: 27.97%
• Country: JP
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 12.79
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥527.00 ▲(1.15% 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.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's ability to expand its market presence and enhance its service offerings, ensuring long-term sustainability.

Balance Sheet Health

A strong equity base and moderate leverage indicate financial stability, providing the company with the flexibility to invest in growth opportunities.

Market Position

The company's extensive network and service offerings position it well in the healthcare sector, enabling it to capitalize on industry growth trends.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow can limit the company's ability to reinvest in its operations and pursue strategic initiatives, potentially affecting future growth.

Net Income Margin Decline

A decline in net income margin indicates pressure on profitability, which could impact the company's ability to maintain competitive pricing and invest in growth.

Earnings Growth Challenges

Negative EPS growth suggests challenges in improving profitability, which may hinder the company's ability to deliver shareholder value in the long term.

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

Company Description

Medical System Network Co., Ltd. distributes pharmaceutical products for pharmacies, hospitals, clinics, and pharmaceutical wholesalers. The company operates through Community Pharmacy Network, Leasing and Facility-related, Meal Catering, and Other Segments. The Community Pharmacy Network segment facilitates purchase and sale of pharmaceuticals between pharmacies, hospitals, clinics, and pharmaceutical wholesalers. This segment also offers inventory management and inventory clearance services, as well as manufactures and markets pharmaceuticals, and involved in negotiating prices with pharmaceutical wholesalers. It operates pharmaceutical platform for transition of pharmacies. Its Leasing and Facility-related segment involves in building leasing services and develops locations for pharmacies, as well as offers consulting services for physicians. The company's Meal Catering segment provides meal catering services for hospitals and welfare facilities. In addition, the company offers nursing care and advisory counseling services for medical treatment. Medical System Network Co., Ltd. was founded in 1999 and is headquartered in Sapporo, Japan.

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

Medical System Network Co., Ltd. demonstrates solid financial health with consistent revenue growth and stable profitability. The balance sheet shows a strong equity position, though 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: Neutral
• Last Price: 521.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4350, the sentiment is Neutral. The current price of 521 is above the 20-day moving average (MA) of 514.20, above the 50-day MA of 507.88, and above the 200-day MA of 471.15, indicating a neutral trend. The MACD of 1.51 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 2.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	¥19.57B	6.84	―	1.83%	4.30%	52.38%
4350	70 Outperform	¥15.33B	9.85	―	2.32%	6.60%	27.97%
3544	67 Neutral	¥11.44B	21.03	―	1.24%	3.58%	-10.70%
7679	66 Neutral	¥41.18B	9.51	―	1.29%	7.12%	14.14%
2796	60 Neutral	¥6.12B	-41.26	―	2.65%	15.66%	56.93%
8095	53 Neutral	¥19.57B	-9.61	―	3.73%	15.00%	-195.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medical System Network Co., Ltd. Corporate Events

Medical System Network Unveils Long-term Vision and Redesigned Financial Materials

Medical System Network Co., Ltd. has announced the formulation of its long-term vision, ‘Machino Akari Vision 2035’, which aims to serve as a guiding light for the community. In conjunction with this vision, the company has redesigned its financial results presentation materials to better align with its strategic goals, potentially impacting its operational focus and stakeholder engagement.

The most recent analyst rating on (JP:4350) stock is a Buy with a Yen527.00 price target. To see the full list of analyst forecasts on Medical System Network Co., Ltd. stock, see the JP:4350 Stock Forecast page.

Medical System Network Co., Ltd. Reports Strong Interim Financial Results

Medical System Network Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with net sales increasing by 6.9% and profit attributable to owners of the parent soaring by 118.6% compared to the previous year. This financial growth reflects the company’s strengthened market position and operational efficiency, which are expected to positively impact stakeholders and support future business strategies.

The most recent analyst rating on (JP:4350) stock is a Buy with a Yen527.00 price target. To see the full list of analyst forecasts on Medical System Network Co., Ltd. stock, see the JP:4350 Stock Forecast page.