Medipal Holdings (7459) AI Stock Analysis

• Market Cap: ¥520.47B
• Dividend Yield: 2.27%
• Average Volume (3M): 365.88K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.52
• Revenue Growth: 3.88%
• EPS Growth: -10.72%
• Country: JP
• Employees: 13,075
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 74.68
• Shares Outstanding: 215,975,040
• 10 Day Avg. Volume: 365,940
• 30 Day Avg. Volume: 365,883
• PEG Ratio: -8.97
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 9.42
• 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): 188.62
• Revenue Forecast (FY): ¥3.79T

• Rating: 68 Neutral
• Price Target: ¥3,047.00 ▲(7.02% Upside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

Medipal Holdings' overall stock score is driven by its solid financial performance and reasonable valuation. The technical analysis indicates a bearish trend, which slightly offsets the positive financial outlook. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Balance Sheet Health

Extremely low leverage and a strong equity ratio give Medipal durable financial flexibility. This capital structure reduces refinancing and interest risk, supports steady operations and investment in logistics or M&A, and enhances resilience to demand or supply shocks over months.

Stable Revenue Growth

Consistent top-line expansion in a defensive healthcare-distribution business reflects steady demand from hospitals, clinics and pharmacies. Recurrent volume growth supports predictable margins and scale benefits, reinforcing distribution network economics over the medium term.

Strong Cash Generation

High FCF relative to net income shows the business converts earnings into cash efficiently, enabling dividends, capex for logistics, or working capital financing without reliance on debt. This underpins durable capital allocation and operational continuity.

Negative Factors

Thin Profit Margins

Distribution businesses typically operate with narrow margins; Medipal's low net and operating margins leave limited buffer against cost inflation or price pressure. Persistently thin margins constrain reinvestment capacity and magnify the earnings impact of volume swings.

Cash Flow Volatility

Even with strong FCF/net income, variability in free cash flow growth raises planning risk for capex, dividends and working capital. Periodic swings can force short-term financing or defer investment, weakening operational predictability over the next several months.

Earnings Per Share Contraction

A notable EPS decline signals underlying pressures on profitability per share, whether from margin compression, cost increases, or one-offs. If earnings power remains challenged, it can limit reinvestment, dividend sustainability and shareholder returns over the medium term.

Medipal Holdings Business Overview & Revenue Model

Company Description

Medipal Holdings Corporation engages in the prescription pharmaceutical wholesale business in Japan. It procures healthcare products related to diagnostics, testing, treatment, and administration comprises medical equipment and medical materials, and clinical diagnostic reagents for use from the pre-symptomatic stage; handles PMS services on contract for manufacturers; and invests in orphan drugs and other products. The company is also involved in the wholesale of cosmetics, daily necessities, and OTC pharmaceuticals; animal health products for companion animals; food processing raw materials for agriculture, fisheries, and livestock; and livestock feed additives, seasonings, veterinary medical equipment, packaging materials, industrial chemicals, and other products. In addition, it engages in the contract-based epidemiological studies, clinical studies, etc.; creation of a computerized medical supply database and master product databases for medical facilities; health insurance claims reviews, medical coding dispatch, outsourcing, and remote education activities; life and non-life insurance agency business; cleaning management; management and operation of distribution centers; commissioned delivery and worker dispatch business; and planning, management, administration, and product and service development for the class A health dispensing pharmacies service brand. Medipal Holdings Corporation serves hospitals, clinics, dispensing pharmacies, drugstores, home centers, convenience stores, supermarkets, discount stores, animal hospitals, livestock and fishery businesses, and processed food manufacturers. The company was formerly known as Mediceo Paltac Holdings Co., Ltd. and changed its name to Medipal Holdings Corporation in October 2009. Medipal Holdings Corporation was founded in 1898 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Medipal Holdings makes money mainly through wholesale distribution margins and service fees tied to moving healthcare products from manufacturers to healthcare customers. Its core revenue stream is the sale of prescription and over-the-counter pharmaceuticals purchased from drug manufacturers and sold to pharmacies, hospitals, and other medical institutions; earnings are generated from the spread between procurement costs and selling prices, supported by large-volume purchasing, inventory management, and nationwide delivery capabilities. A second major stream comes from distributing medical devices and medical consumables, where revenue is similarly earned via wholesale margins and may include value-added services such as product delivery coordination, inventory/stock management support for healthcare facilities, and related logistics operations. Additional earnings can come from group-wide logistics, warehousing, and distribution services that enable efficient delivery and replenishment for customers and manufacturers. If the company discloses specific material partnerships, customer concentration, or segment-level profit breakdowns, that information is not available here and is therefore null.

Medipal Holdings Financial Statement Overview

Summary

Medipal Holdings shows strong revenue growth and a robust balance sheet with minimal leverage. However, there is room for improvement in operational efficiency and cash flow stability.

Income Statement

Medipal Holdings has shown a strong revenue growth rate of 5.57% in the latest year, indicating a positive trajectory. The gross profit margin is stable at around 6.6%, and the net profit margin is consistent at approximately 1.1%. However, the EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio of 0.0067, indicating minimal leverage and financial risk. The return on equity is healthy at 6.5%, reflecting effective use of shareholder funds. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Medipal Holdings has demonstrated strong free cash flow growth, although the operating cash flow to net income ratio is modest at 0.06. The free cash flow to net income ratio is high at 0.85, indicating good cash generation relative to net income. However, the volatility in free cash flow growth rates suggests potential fluctuations in cash flow stability.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.71T	3.67T	3.56T	3.36T	3.29T	3.21T
Gross Profit	244.32B	242.25B	233.01B	212.12B	205.11B	201.49B
EBITDA	74.89B	74.03B	65.31B	63.62B	59.96B	53.37B
Net Income	40.86B	40.28B	41.48B	38.81B	29.42B	23.93B
Balance Sheet
Total Assets	1.85T	1.82T	1.80T	1.70T	1.71T	1.68T
Cash, Cash Equivalents and Short-Term Investments	246.03B	261.41B	230.47B	195.03B	261.92B	241.52B
Total Debt	38.85B	4.17B	1.46B	7.38B	38.81B	39.83B
Total Liabilities	1.09T	1.07T	1.06T	1.02T	1.06T	1.04T
Stockholders Equity	616.58B	619.57B	600.35B	561.36B	530.30B	523.01B
Cash Flow
Free Cash Flow	0.00	51.70B	46.28B	5.66B	45.26B	21.61B
Operating Cash Flow	0.00	60.56B	61.84B	16.15B	61.22B	34.45B
Investing Cash Flow	0.00	-3.36B	-7.82B	-39.47B	-24.34B	-2.94B
Financing Cash Flow	0.00	-25.95B	-25.25B	-43.56B	-16.47B	-16.00B

Medipal Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2847.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7459, the sentiment is Positive. The current price of 2847 is below the 20-day moving average (MA) of 2917.57, below the 50-day MA of 2895.97, and above the 200-day MA of 2638.86, indicating a neutral trend. The MACD of -16.46 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 57.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7459.

Medipal Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2784	78 Outperform	¥461.81B	5.40	6.92%	2.69%	5.11%	-20.51%
7649	75 Outperform	¥649.49B	23.29	15.71%	0.96%	21.81%	67.76%
9989	69 Neutral	¥458.11B	14.05	11.37%	3.04%	6.32%	8.19%
9987	69 Neutral	¥330.94B	7.24	8.60%	1.60%	1.37%	-1.55%
7459	68 Neutral	¥520.47B	9.27	6.39%	2.27%	3.88%	-10.72%
3549	67 Neutral	¥351.10B	20.79	―	0.41%	15.81%	27.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medipal Holdings Corporate Events

Medipal Posts Higher Nine-Month Sales but Signals Profit Pressure for Full Year

Medipal Holdings reported consolidated net sales of ¥2.91 trillion for the nine months to December 31, 2025, up 3.7% year on year, while operating profit slipped 4.8% to ¥43.2 billion but ordinary profit rose 8.1% and profit attributable to owners of parent edged up 3.2%. Total assets expanded to ¥2.02 trillion and net assets to ¥783.9 billion, with the company maintaining its dividend policy and completing a share buyback and cancellation that lifted earnings per share, even as it forecasts modest full-year sales growth and a decline in operating profit and bottom-line earnings.

The most recent analyst rating on (JP:7459) stock is a Hold with a Yen3111.00 price target. To see the full list of analyst forecasts on Medipal Holdings stock, see the JP:7459 Stock Forecast page.