Medipal Holdings (7459) AI Stock Analysis

• Market Cap: ¥537.53B
• Dividend Yield: 2.27%
• Average Volume (3M): 365.88K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.45
• 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): 183.52
• Revenue Forecast (FY): ¥3.79T

• Rating: 68 Neutral
• Price Target: ¥3,343.00 ▲(17.42% 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

Very low leverage

Extremely low debt-to-equity (0.0067) and a strong equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk, supports investment in logistics or M&A, and preserves capacity to absorb shocks—strengths that matter over the coming months.

Consistent revenue growth

Sustained revenue growth (5.57% latest year) with a stable gross margin (~6.6%) signals recurring demand and scale in pharmaceutical distribution. Durable customer relationships with hospitals, clinics and pharmacies support predictable top-line performance over the medium term.

Strong free cash flow

A high FCF-to-net-income ratio (0.85) shows the company converts earnings into cash, enabling dividends, capex and working capital needs. Despite some FCF volatility, persistent cash generation enhances financial resilience and funds strategic initiatives over months.

Negative Factors

Thin operating margins

Relatively low EBIT and EBITDA margins indicate limited operating profitability common in distribution. Thin margins reduce the company's ability to absorb cost inflation, invest in service upgrades, or expand margins organically, presenting a structural efficiency challenge.

Weak cash conversion

A very low operating-cash-flow-to-net-income ratio (0.06) suggests earnings are not readily converting to cash, likely from working capital or inventory dynamics. This undermines short-term liquidity and increases reliance on balance-sheet management despite low leverage.

Declining EPS

A ~15% drop in EPS signals recent earnings pressure that can constrain retained earnings and dividend sustainability. If persistent, falling EPS may reflect structural margin or cost issues that limit reinvestment and shareholder returns in 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 generates revenue through several key streams, primarily from the sale of medical supplies and pharmaceuticals to healthcare institutions. The company's revenue model is supported by a strong distribution network, which allows it to reach a wide array of clients in the healthcare sector. Additionally, Medipal Holdings benefits from partnerships with various manufacturers and suppliers, ensuring access to a broad portfolio of products. The company also engages in value-added services such as logistics and inventory management for its clients, further contributing to its earnings. By focusing on both product sales and service offerings, Medipal Holdings maintains a diversified revenue base that helps mitigate market risks.

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	254.44B	242.25B	246.66B	224.31B	217.44B	214.26B
EBITDA	90.71B	95.16B	92.73B	84.74B	71.64B	64.08B
Net Income	40.86B	40.28B	41.47B	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	30.08B	30.58B
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	42.45B	2.64B	42.34B	18.78B
Operating Cash Flow	0.00	60.56B	61.84B	16.15B	61.22B	34.45B
Investing Cash Flow	0.00	-3.36B	-7.82B	-39.49B	-24.34B	-2.94B
Financing Cash Flow	0.00	-25.95B	-25.25B	-43.54B	-16.47B	-16.00B

Medipal Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2847.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2916.72, below the 50-day MA of 2864.51, and above the 200-day MA of 2590.21, indicating a bullish trend. The MACD of 36.64 indicates Negative momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 77.49 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	¥495.01B	14.01	4.94%	2.69%	5.11%	-20.51%
7649	75 Outperform	¥662.87B	15.05	15.71%	0.96%	21.81%	67.76%
9989	69 Neutral	¥498.56B	16.01	11.50%	3.04%	6.32%	8.19%
9987	69 Neutral	¥365.40B	13.06	7.09%	1.60%	1.37%	-1.55%
7459	68 Neutral	¥537.53B	14.75	6.39%	2.27%	3.88%	-10.72%
3549	67 Neutral	¥388.39B	21.75	―	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.