Mizuho Medy Co., Ltd. (4595) AI Stock Analysis

• Market Cap: ¥36.69B
• Dividend Yield: 6.29%
• Average Volume (3M): 64.11K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.41
• Revenue Growth: -12.03%
• EPS Growth: -19.61%
• Country: JP
• Employees: 187
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 96.42
• Shares Outstanding: 19,051,200
• 10 Day Avg. Volume: 72,640
• 30 Day Avg. Volume: 64,113
• PEG Ratio: -1.03
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 2.88
• P/FCF Ratio: 19.09
• 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): 169.6
• Revenue Forecast (FY): ¥10.80B

• Rating: 81 Outperform
• Price Target: ¥2,072.00 ▲(18.20% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial quality (notably zero debt and solid profitability), supported by attractive valuation (low P/E and high dividend yield). Technicals are moderately positive with an upward trend and neutral momentum, while weaker 2025 cash flow momentum tempers the overall rating.

Positive Factors

Balance Sheet Strength

Zero reported debt and an improving equity base give Mizuho Medy durable financial flexibility, lowering bankruptcy and refinancing risk. This conservatism supports investment in product development or capacity, secures dividend ability, and cushions the business through cyclical swings over the next 2–6 months.

High Profitability

Sustained net margins near 30% reflect strong cost structure and pricing in core IVD reagents, enabling internal funding for R&D, dividends, and selective M&A. High margin durability helps absorb volume volatility and supports consistent free cash generation over a multi‑quarter horizon.

Recurring Consumables Business Model

A consumables-driven model (reagents used per test) produces repeatable revenue streams tied to clinical testing volumes, enhancing predictability and customer stickiness. This structural revenue base supports steady demand and margin visibility across quarters, benefiting cash flow and product cross-sell.

Negative Factors

Weaker Cash Conversion in 2025

A decline in operating cash flow and cash conversion in 2025 reduces free cash flow flexibility relative to earnings, tightening funding for capex, dividends or new product rollouts. If conversion weakness persists, it elevates volatility of available cash for strategic initiatives in the coming quarters.

Declining Returns on Equity

A multi-year decline in ROE signals waning earnings power versus prior peaks, potentially from pricing, mix, or competitive pressures. Lower profitability on equity constrains long-term shareholder returns and suggests management must improve growth or efficiency to restore prior performance.

Choppy Revenue Growth / Profit Normalization

Modest, uneven revenue growth and normalization of margins from 2022 highs indicate demand or mix headwinds. This variability reduces top‑line visibility and makes future margin recovery uncertain, limiting the company's ability to sustainably expand operating leverage over the next several quarters.

Mizuho Medy Co., Ltd. Business Overview & Revenue Model

Company Description

Mizuho Medy Co.,Ltd. researches and develops, manufactures, and sells in-vitro diagnostic products and related scientific and technical information services primarily in Japan. The company provides immunoassay test products, such as influenza virus kits; RS virus and human metapneumovirus antigen test kits; streptococcus pneumoniae antigen and legionella antigen test kits; mycoplasma pneumoniae antigen test kits; adenovirus antigen test kits; rotavirus and adenovirus antigen test kits; norovirus antigen test kits; group a streptococcal antigen test kits; pregnancy test kits; ovulation test kits; and fecal occult blood test kits. It also offers gene analysis instrument; SARS-CoV-2 detection kits; and mycoplasma pneumoniae nucleic acid kits. In addition, the company engages in import and export activities. It also operates in the United States, Belgium, Finland, Netherlands, Taiwan, Thailand, etc. The company was incorporated in 1977 and is headquartered in Tosu, Japan.

How the Company Makes Money

Mizuho Medy Co., Ltd. generates revenue through the sale of its medical devices and healthcare products. The company targets hospitals, clinics, and other healthcare facilities as its primary customer base, supplying them with essential medical equipment and consumables. Revenue is driven by the continuous demand for high-quality and reliable medical devices, which are crucial for patient care and medical procedures. The company may also engage in partnerships or collaborations with other healthcare organizations to expand its product offerings and reach a wider market. Additionally, Mizuho Medy Co., Ltd. may benefit from ongoing advancements in medical technology, which can lead to the development of new products and open up additional revenue streams.

Mizuho Medy Co., Ltd. Financial Statement Overview

Summary

Strong profitability remains a key strength (net margin ~30%) and the balance sheet is exceptionally conservative with zero debt. Offsetting this, profitability has normalized from the 2022 peak and 2025 showed weaker cash conversion with declines in operating cash flow and free cash flow versus prior years.

Income Statement

Profitability remains a key strength: the latest annual period (2025) shows very high gross and operating profitability and a strong net margin (~30%). That said, the growth profile is choppy—revenue is only modestly higher recently (2025 up ~4.9%), while profitability and margins have come down meaningfully from the 2022 peak, indicating normalization and less favorable mix/pricing versus prior highs.

Balance Sheet

Balance sheet quality is excellent with zero debt in recent years (debt-to-equity at 0.0), providing high financial flexibility and low solvency risk. Equity and assets have grown over time, supporting resilience. The main watch item is that returns on equity have trended down from very elevated levels in 2021–2022 to more moderate levels by 2024, reflecting lower earnings power versus the peak period (though still solid).

Cash Flow

Cash generation is positive with free cash flow consistently profitable, and free cash flow tracks net income well in most years (generally ~87%–97% in 2021–2025). However, the latest year (2025) shows a notable drop in operating cash flow and weaker cash conversion versus earnings (operating cash flow below net income), and free cash flow has been declining from the 2022–2023 levels—raising some near-term quality/volatility concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.74B	11.26B	11.43B	10.99B	17.58B	12.89B
Gross Profit	7.63B	7.78B	8.08B	8.07B	14.10B	9.65B
EBITDA	4.71B	4.91B	5.15B	5.35B	11.23B	7.00B
Net Income	3.30B	3.42B	3.77B	3.77B	7.84B	4.82B
Balance Sheet
Total Assets	19.73B	22.38B	20.73B	18.95B	19.10B	12.19B
Cash, Cash Equivalents and Short-Term Investments	12.37B	10.82B	11.25B	10.13B	8.70B	4.33B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.50B	3.69B	3.38B	3.27B	4.82B	4.16B
Stockholders Equity	17.23B	18.68B	17.35B	15.68B	14.28B	8.03B
Cash Flow
Free Cash Flow	0.00	1.70B	3.05B	3.72B	5.99B	5.44B
Operating Cash Flow	0.00	1.96B	3.35B	3.99B	6.17B	5.60B
Investing Cash Flow	0.00	-7.28B	-307.00M	-270.45M	-1.55B	-159.74M
Financing Cash Flow	0.00	-2.08B	-2.09B	-2.38B	-1.57B	-1.16B

Mizuho Medy Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1753.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4595, the sentiment is Positive. The current price of 1753 is below the 20-day moving average (MA) of 1821.80, below the 50-day MA of 1776.01, and above the 200-day MA of 1568.44, indicating a bullish trend. The MACD of 31.07 indicates Negative momentum. The RSI at 73.61 is Negative, neither overbought nor oversold. The STOCH value of 90.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4595.

Mizuho Medy Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4595	81 Outperform	¥36.69B	10.71	―	6.29%	-12.03%	-19.61%
4886	76 Outperform	¥66.32B	14.41	―	2.52%	5.44%	-20.33%
4534	73 Outperform	¥134.92B	21.89	5.11%	2.34%	4.35%	48.30%
4554	68 Neutral	¥58.59B	25.14	6.49%	2.39%	12.01%	-51.38%
4539	64 Neutral	¥6.42B	11.77	―	3.21%	4.25%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4892	48 Neutral	¥6.66B	-7.70	―	―	56.17%	-11.63%