Medrx Co., Ltd. (4586) AI Stock Analysis

• Market Cap: ¥7.90B
• Dividend Yield: N/A
• Average Volume (3M): 15.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: -82.19%
• EPS Growth: -106.15%
• Country: JP
• Employees: 22
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -3.78
• Shares Outstanding: 59,365,100
• 10 Day Avg. Volume: 29,235,600
• 30 Day Avg. Volume: 15,243,330
• PEG Ratio: 0.14
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 13.87
• P/FCF Ratio: -4.44
• 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

• Rating: 41 Neutral
• Price Target: ―

Medrx Co., Ltd. faces significant challenges, with declining revenue and persistent losses overshadowing its strong balance sheet. The stock's bearish technical indicators and negative valuation metrics further weigh on its attractiveness, resulting in a low overall score.

Medrx Co., Ltd. Business Overview & Revenue Model

Company Description

MedRx Co., Ltd, a pharmaceutical formulation development company, provides pharmaceutical drugs based on the transdermal absorption system in Japan. The company develops medicines based on Ionic liquid transdermal system (ILTS) and Nano-sized Colloid Transdermal System (NCTS); and researches and develops painless transdermal administration system for vaccines, nucleic acid medicines, protein medicines, etc. Its products pipeline includes MRX-4TZT, which is in phase I clinical trials for the treatment of spastic paralysis; MRX-9FLT that is in phase I clinical trials to treat chronic, cancer, and severe pain; and MRX-7MLL and MRX-6LDT that is in pre-clinical trials to treat Alzheimer's disease and chronic pain, as well as MRX-5LBT that has completed the clinical trials for the treatment of postherpetic nerve pain. MedRx Co., Ltd was incorporated in 2002 and is headquartered in Higashikagawa, Japan.

How the Company Makes Money

Medrx Co., Ltd. generates revenue through the development and commercialization of its proprietary transdermal drug delivery systems. The company's revenue streams include the sale of pharmaceutical products, licensing agreements with other pharmaceutical companies, and collaborative partnerships for research and development. Additionally, Medrx Co., Ltd. may earn income through milestone payments and royalties from the commercialization of products developed in collaboration with other entities. The company's focus on innovation and strategic partnerships plays a significant role in its earnings potential.

Medrx Co., Ltd. Financial Statement Overview

Summary

Medrx Co., Ltd. is struggling with declining revenue and persistent losses, despite a strong balance sheet with no net debt. The negative cash flows and lack of profitability are concerning.

Income Statement

Medrx Co., Ltd. has been experiencing a consistent decline in revenue from 2019 to 2024, with the most recent annual report showing a total revenue of 257 million JPY. The company has been unable to achieve a positive net profit margin, with significant losses reported each year, including a net income of -806 million JPY in 2024. Despite having a high gross profit margin, the EBIT and EBITDA margins are negative, indicating high operational costs and inefficiency.

Balance Sheet

The balance sheet shows strong liquidity with cash and short-term investments exceeding total liabilities, resulting in no net debt. The company maintains a high equity ratio, indicating a strong capital structure. However, the absence of revenue growth and consistent net losses pose a risk to long-term financial stability.

Cash Flow

Medrx Co., Ltd. has been generating negative operating cash flow, with -803 million JPY reported in 2024, indicating challenges in covering operational expenses. Despite this, the company has maintained positive financing cash flow, suggesting reliance on external funding. The free cash flow remains negative, reflecting ongoing financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.81M	257.00M	29.00M	59.48M	8.35M	115.09M
Gross Profit	16.45M	219.19M	26.00M	10.45M	6.09M	111.18M
EBITDA	-1.32B	-764.31M	-884.52M	-1.05B	-996.66M	-1.05B
Net Income	-1.37B	-806.00M	-932.00M	-1.11B	-1.06B	-1.11B
Balance Sheet
Total Assets	1.93B	2.27B	2.05B	1.40B	2.11B	2.30B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.98B	1.72B	994.02M	1.70B	1.81B
Total Debt	0.00	0.00	0.00	0.00	0.00	50.00M
Total Liabilities	62.52M	107.00M	127.52M	185.56M	153.10M	149.88M
Stockholders Equity	1.87B	2.17B	1.92B	1.21B	1.96B	2.15B
Cash Flow
Free Cash Flow	0.00	-803.00M	-913.76M	-1.08B	-926.23M	-1.02B
Operating Cash Flow	0.00	-803.00M	-913.00M	-1.07B	-923.69M	-985.35M
Investing Cash Flow	0.00	-3.15M	-759.00K	-1.96M	-2.54M	-5.10M
Financing Cash Flow	0.00	1.07B	1.64B	356.31M	815.91M	1.39B

Medrx Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4586, the sentiment is Positive. The current price of 145 is above the 20-day moving average (MA) of 119.80, above the 50-day MA of 107.46, and above the 200-day MA of 81.86, indicating a bullish trend. The MACD of 9.36 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 13.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4586.

Medrx Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4539	70 Outperform	¥5.78B	14.63	―	3.10%	5.18%	―
4582	51 Neutral	¥6.80B	―	―	―	-50.88%	-22.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4892	44 Neutral	¥5.69B	―	―	―	8.12%	-19.12%
4586	41 Neutral	¥7.90B	―	―	―	-82.19%	-106.15%
4883	39 Underperform	¥6.41B	―	―	―	―	64.87%
4597	37 Underperform	€9.09B	―	-122.54%	―	84.28%	-17.32%