Medley (4480) AI Stock Analysis

• Market Cap: ¥97.22B
• Dividend Yield: N/A
• Average Volume (3M): 278.72K
• Price to Earnings (P/E): 43.2
• Beta (1Y): 0.65
• Revenue Growth: 42.90%
• EPS Growth: -16.04%
• Country: JP
• Employees: 1,487
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -2.34
• Shares Outstanding: 32,738,600
• 10 Day Avg. Volume: 282,880
• 30 Day Avg. Volume: 278,716
• PEG Ratio: -2.19
• Price to Book (P/B): 5.22
• 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: ¥5,952.38
• Price Target Upside: 98.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥3,543.00 ▲(18.10%Upside)

Medley, Inc. demonstrates strong financial performance with robust revenue and profit growth and a solid balance sheet, which is the primary driver of the score. Technical analysis shows mixed signals, reflecting some uncertainty in stock momentum. Valuation appears high, suggesting limited immediate upside. Overall, while the company's fundamentals are strong, valuation concerns and mixed technical indicators warrant a cautious approach.

Medley Business Overview & Revenue Model

Company Description

Medley, Inc. is a healthcare technology company based in Japan, focusing on the development and operation of online platforms and services within the medical and healthcare sectors. The company operates various online services such as job placement for medical professionals, telemedicine services, and healthcare media content aimed at improving access to medical information and resources.

How the Company Makes Money

Medley, Inc. generates revenue through multiple streams, primarily from its online platforms and services. The company earns income by charging fees for job placement and recruitment services within the healthcare sector, facilitating connections between medical professionals and healthcare institutions. Additionally, Medley offers telemedicine services, generating revenue through subscription models and service fees from healthcare providers and patients. The company also monetizes its healthcare media content through advertising and partnerships with pharmaceutical and healthcare companies seeking to reach a targeted audience.

Medley Financial Statement Overview

Summary

Overall, Medley, Inc. is in a strong financial position. The company shows impressive revenue and profit growth, along with stable cash flow generation. The balance sheet reflects a strong equity position and manageable debt levels. While there are some areas to monitor, such as operational efficiency and investment returns, the financial health of the company is positive and supports continued growth.

Income Statement

Medley, Inc. has demonstrated strong revenue growth, with a significant increase from 2023 to 2024, indicating a positive growth trajectory. The gross profit margin remains robust, and the net profit margin is healthy, reflecting efficient cost management. However, the slight decline in EBIT margin suggests potential pressure on operational efficiency.

Balance Sheet

The company's balance sheet is stable, with a solid equity base and a healthy debt-to-equity ratio, indicating low financial leverage. The equity ratio is also strong, reflecting a well-capitalized structure. However, the increase in total liabilities warrants monitoring, as it could impact future financial flexibility.

Cash Flow

Medley, Inc. exhibits strong cash flow generation, with positive free cash flow and a favorable operating cash flow to net income ratio. The free cash flow growth rate is commendable, suggesting efficient capital expenditure management. Despite this, the significant negative investing cash flow highlights substantial investments, which could pose risks if not yielding expected returns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
29.30B	20.53B	14.19B	10.86B	6.83B
	Gross Profit
18.92B	13.36B	9.72B	6.99B	4.67B
	EBIT
2.33B	2.66B	1.29B	733.25M	396.09M
	EBITDA
4.00B	4.50B	2.14B	1.25B	586.57M
	Net Income Common Stockholders
2.80B	2.57B	1.02B	563.00M	455.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.00B	15.35B	14.42B	14.29B	14.05B
	Total Assets
45.20B	25.43B	21.81B	20.21B	15.52B
	Total Debt
15.18B	1.66B	2.38B	3.11B	4.18B
	Net Debt
-3.81B	-13.69B	-12.05B	-11.19B	-9.87B
	Total Liabilities
24.98B	7.79B	6.64B	6.16B	5.80B
	Stockholders Equity
20.21B	17.55B	15.08B	13.97B	9.72B
Cash Flow		Free Cash Flow
2.38B	3.47B	1.64B	796.39M	591.87M
	Operating Cash Flow
2.45B	3.87B	2.01B	1.04B	805.76M
	Investing Cash Flow
-10.72B	-1.66B	-751.00M	-3.29B	-283.15M
	Financing Cash Flow
11.90B	-1.22B	-927.00M	2.22B	9.05B

Medley Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3000.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4480, the sentiment is Negative. The current price of 3000 is below the 20-day moving average (MA) of 3142.55, below the 50-day MA of 3191.42, and below the 200-day MA of 3539.70, indicating a bearish trend. The MACD of -92.09 indicates Positive momentum. The RSI at 36.37 is Neutral, neither overbought nor oversold. The STOCH value of 35.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4480.

Medley Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2175	76 Outperform	¥124.95B	20.11		2.00%	12.93%	-14.89%
4480	68 Neutral	¥97.22B	43.17	12.05%	―	42.90%	-16.04%
4483	68 Neutral	¥237.31B	32.61		0.44%	28.85%	54.60%
3939	65 Neutral	¥19.58B	19.99		1.57%	17.20%	20.25%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%
4263	45 Neutral	¥9.63B	―		―	-79.38%	-1239.83%
3902	43 Neutral	¥15.64B	4,465.71		1.62%	-7.98%	-181.00%

Medley Corporate Events

Medley, Inc. Announces Change in Major Shareholder

Medley, Inc. announced a change in its major shareholder, with OLP Capital Management Limited reducing its shareholding from 10.83% to 9.57%. This change in shareholding is based on a large-volume shareholding report, and the company states that it does not foresee any significant impact on its operations or outlook.

The most recent analyst rating on (JP:4480) stock is a Buy with a Yen7400.00 price target. To see the full list of analyst forecasts on Medley stock, see the JP:4480 Stock Forecast page.

Medley, Inc. Completes Treasury Share Disposal

Medley, Inc. has completed the disposal of treasury shares as restricted stock compensation to its employees and subsidiaries, following a resolution made by the Board of Directors. The number of shares disposed was slightly adjusted due to the forfeiture of rights by one potential allottee, but this change does not impact the company’s financial forecast for the fiscal year ending December 2025.

Medley, Inc. Enhances Corporate Governance and Promotes Diversity

Medley, Inc. is committed to strengthening its corporate governance by enhancing the supervisory function of its Board of Directors and improving information disclosure. The company is also focused on promoting diversity and ensuring fair hiring practices, while considering the potential for strategic shareholdings to foster long-term growth. Although climate change is not expected to impact its business significantly, Medley is taking steps to address it through energy conservation and digitization initiatives.

Medley, Inc. Aligns Leadership Incentives with Shareholder Interests

Medley, Inc. announced the disposal of 89,200 treasury shares as restricted stock compensation to its directors and executive officers. This move is part of a broader plan to align the interests of the company’s leadership with its shareholders by tying compensation to the company’s share price. The initiative is designed to incentivize the sustainable increase of corporate value, with varying transfer restriction periods to encourage long-term commitment.

Medley, Inc. Announces Strategic Share Repurchase Plan

Medley, Inc. announced a resolution to repurchase up to 350,000 of its common shares, representing 1.1% of its total issued shares, with an aggregate amount of up to 1,000 million yen. This strategic move, set to occur between March 11 and September 30, 2025, aims to provide flexibility in response to share price fluctuations and to return profits to shareholders, potentially impacting the company’s market positioning and shareholder value.