MRSO, Inc. (5619) AI Stock Analysis

• Market Cap: ¥3.11B
• Dividend Yield: N/A
• Average Volume (3M): 3.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 21
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Application
• EPS (TTM): -2.24
• Shares Outstanding: 3,552,750
• 10 Day Avg. Volume: 5,480
• 30 Day Avg. Volume: 3,213
• PEG Ratio: -0.49
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.77
• P/FCF Ratio: -47.63
• 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: 50 Neutral
• Price Target: ¥874.00 ▼(-10.82% Downside)

MRSO, Inc. faces significant financial challenges with declining revenue and profitability, impacting its overall score. Technical indicators suggest a bearish trend, and the stock appears overvalued with a high P/E ratio. These factors contribute to a moderate overall stock score.

Positive Factors

Low Leverage / Strong Equity Base

Extremely low leverage and a high equity ratio give the company durable financial flexibility. This reduces bankruptcy risk, supports investment or restructuring options during downturns, and allows management to pursue strategic initiatives without heavy interest burdens.

High Gross Margin

A ~77% gross margin signals strong product economics and pricing power, enabling the company to cover operating costs and invest in R&D or sales. High unit economics are a sustainable advantage for software businesses and support long-term profitability if top-line stabilizes.

Recurring Revenue Mix

A business model weighted to subscriptions and license renewals yields recurring, predictable revenue that smooths cash flow and supports customer lifetime value optimization. Over months, this improves planning, retention focus, and margin scalability versus one-off sales.

Negative Factors

Declining Revenue

A sustained ~26% revenue decline erodes scale, reduces leverage on fixed costs, and constrains reinvestment in product and sales. If the top line contraction continues, the firm's competitive position and ability to defend market share will be materially weakened over the medium term.

Negative Free Cash Flow

Material negative free cash flow signals the business is not generating sufficient operating liquidity to fund capital needs. Over months, persistent FCF deficits increase dependence on external financing or equity, raising dilution or refinancing risk despite low recorded debt.

Falling Return on Equity

A sharp drop in ROE indicates deteriorating capital efficiency and weaker returns to shareholders. This structural decline reflects reduced profitability or asset utilization, making it harder to attract long-term investment and potentially forcing strategic changes to restore performance.

MRSO, Inc. Business Overview & Revenue Model

Company Description

MRSO, Inc. operates a platform that manages reservations for medical check-ups. It offers Health Care Plat Form (HCPF), DX, and Large-scale vaccination services. HCPF service offers medical checkup and medical checkup online reservation service by MRSO.jp. DX service handles web reservation service using the homepage-based medical checkup and medical examination web reservation system (MRS). Large-scale vaccination service provides web reservation for vaccination of new type of coronavirus. The company was founded by Tsunegoro Nishino on February 6, 2015 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MRSO, Inc. generates revenue primarily through the sale of its medical devices and software solutions to healthcare providers, hospitals, and clinics. The company employs a direct sales model complemented by partnerships with distributors to expand its market reach. Key revenue streams include product sales, recurring revenue from software subscriptions and service contracts, and consulting services for healthcare systems. Additionally, MRSO, Inc. benefits from strategic partnerships with other technology firms and healthcare organizations, which enhance its product offerings and market position, contributing significantly to its earnings.

MRSO, Inc. Financial Statement Overview

Summary

MRSO, Inc. is facing financial challenges with declining revenue and profitability. The income statement shows a significant decrease in net profit margin and revenue. Despite a strong balance sheet with minimal leverage, the cash flow position is concerning due to negative free cash flow.

Income Statement

MRSO, Inc. has experienced a significant decline in revenue and profitability over the past year. The gross profit margin remains strong at approximately 77.2% for 2024, but the net profit margin has decreased to 7.6% from 21.4% in 2023, indicating reduced profitability. Revenue has decreased by 26.3% from 2023 to 2024, highlighting challenges in maintaining sales growth. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.003, indicating minimal leverage and financial risk. The equity ratio is high at 89.6%, showcasing strong equity financing. However, the return on equity has fallen to 5.0% in 2024 from 20.6% in 2023, suggesting reduced profitability on shareholder investments.

Cash Flow

MRSO, Inc. faces cash flow challenges, with a negative free cash flow of -77.6 million in 2024 compared to a positive 43.1 million in 2023. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to net income. The free cash flow to net income ratio is also negative, reflecting difficulties in generating cash from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.33B	1.81B	2.25B	1.74B
Gross Profit	1.03B	1.45B	1.79B	1.35B
EBITDA	163.77M	612.32M	1.01B	914.67M
Net Income	101.00M	387.55M	653.83M	650.88M
Balance Sheet
Total Assets	2.26B	2.25B	2.08B	1.70B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.93B	1.74B	1.42B
Total Debt	7.37M	15.36M	23.35M	31.34M
Total Liabilities	234.45M	373.01M	744.00M	655.32M
Stockholders Equity	2.02B	1.88B	1.34B	1.04B
Cash Flow
Free Cash Flow	-77.63M	43.06M	695.05M	1.10B
Operating Cash Flow	-77.63M	48.28M	696.31M	1.11B
Investing Cash Flow	-59.69M	-8.31M	-1.43M	-12.95M
Financing Cash Flow	22.89M	144.36M	-367.99M	-7.99M

MRSO, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 980.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5619, the sentiment is Negative. The current price of 980 is above the 20-day moving average (MA) of 880.15, above the 50-day MA of 928.04, and below the 200-day MA of 985.80, indicating a bearish trend. The MACD of -14.99 indicates Negative momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 35.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5619.

MRSO, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3744	82 Outperform	¥4.47B	7.32	―	―	-7.31%	287.94%
6633	74 Outperform	¥3.62B	13.36	―	2.74%	25.94%	368.27%
3710	72 Outperform	¥2.98B	11.30	―	1.05%	-3.21%	―
4447	61 Neutral	¥3.19B	35.40	―	4.17%	-15.23%	-65.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3909	51 Neutral	¥2.88B	3.27	―	―	-32.56%	―
5619	50 Neutral	¥3.11B	-128.42	―	―	―	―