Mental Health Technologies Co. Ltd. (9218) AI Stock Analysis

• Market Cap: ¥7.10B
• Dividend Yield: N/A
• Average Volume (3M): 44.02K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.13
• Revenue Growth: 105.21%
• EPS Growth: 431.02%
• Country: JP
• Employees: 137
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 6.77
• Shares Outstanding: 10,391,300
• 10 Day Avg. Volume: 37,790
• 30 Day Avg. Volume: 44,023
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥702.00
• Price Target Upside: 2.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥722.00 ▲(5.71%Upside)

The company's strong revenue growth and efficient cost management are significant strengths, but profitability challenges and increased leverage are notable risks. Technical indicators suggest a neutral trend, and the valuation appears fair. The absence of a dividend yield and lack of recent earnings call insights limit additional positive factors.

Mental Health Technologies Co. Ltd. Business Overview & Revenue Model

Company Description

Mental Health Technologies Co. Ltd. (9218) is a leading provider of innovative digital solutions aimed at enhancing mental health care delivery. The company operates primarily in the healthcare technology sector, focusing on developing software applications and platforms that facilitate mental health assessments, teletherapy, and patient management. Its core products include mobile applications, online therapy platforms, and analytics tools designed to improve patient outcomes and streamline mental health services for providers.

How the Company Makes Money

Mental Health Technologies Co. Ltd. generates revenue through multiple streams, including subscription fees from healthcare providers using its software solutions, licensing of its technology to third-party organizations, and direct-to-consumer offerings. Key revenue streams include monthly or annual subscriptions for access to its teletherapy platforms and analytics tools, which are used by mental health practitioners and institutions. Additionally, the company may engage in partnerships with healthcare organizations, insurance companies, and educational institutions to provide integrated mental health solutions, further enhancing its earnings through collaborative contracts and service agreements.

Mental Health Technologies Co. Ltd. Financial Statement Overview

Summary

The company demonstrated significant revenue growth and strong gross margins, though profitability remains a challenge due to a recent net loss. Increased leverage on the balance sheet requires careful management, but cash flow is a strong point with improved operating cash flow and positive free cash flow.

Income Statement

Mental Health Technologies Co. Ltd. demonstrated significant revenue growth, particularly in recent years, with a 96.8% increase from 2023 to 2024. Gross profit margin remained strong at 35.8% in 2024. However, the company reported a net loss in 2024, leading to a negative net profit margin of -0.6%. The EBIT margin and EBITDA margin stood at 2.1% and 5.0%, respectively, indicating modest operating profitability.

Balance Sheet

The company's debt-to-equity ratio increased in 2024, reaching 1.98, indicating higher leverage. The equity ratio was 27.9%, reflecting a moderate proportion of equity financing. Despite an increase in assets and equity, the return on equity turned negative due to the net loss.

Cash Flow

Operating cash flow improved significantly in 2024, with a 52.1% increase from 2023. The company generated positive free cash flow, enhancing financial flexibility. However, the free cash flow to net income ratio was negatively impacted by the net loss.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.13B	2.61B	2.29B	1.45B	947.04M
Gross Profit	1.84B	1.45B	1.43B	769.72M	451.58M
EBITDA	224.92M	559.90M	427.19M	162.13M	-119.87M
Net Income	-29.78M	441.37M	265.12M	161.83M	-149.06M
Balance Sheet
Total Assets	4.63B	1.73B	1.30B	663.62M	374.45M
Cash, Cash Equivalents and Short-Term Investments	1.12B	913.71M	659.51M	423.50M	188.81M
Total Debt	2.57B	332.49M	183.78M	188.52M	222.68M
Total Liabilities	3.33B	618.32M	640.75M	416.20M	376.76M
Stockholders Equity	1.29B	1.12B	655.37M	247.42M	-2.31M
Cash Flow
Free Cash Flow	244.00M	111.83M	325.17M	181.38M	-120.36M
Operating Cash Flow	270.51M	177.54M	377.49M	202.14M	-119.72M
Investing Cash Flow	-2.15B	-90.61M	-260.33M	-20.79M	-642.00K
Financing Cash Flow	2.08B	167.28M	118.85M	53.33M	203.13M

Mental Health Technologies Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 683.00
• 50DMA: Positive
• 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:9218, the sentiment is Positive. The current price of 683 is above the 20-day moving average (MA) of 662.55, above the 50-day MA of 667.64, and below the 200-day MA of 739.50, indicating a neutral trend. The MACD of 2.30 indicates Negative momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9218.

Mental Health Technologies Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4320	73 Outperform	¥11.97B	23.96		2.50%	9.21%	-20.04%
9218	65 Neutral	¥7.10B	21.51		―	105.21%	431.02%
Sector *	51 Neutral	$7.38B	0.34	-69.01%	2.37%	16.35%	0.39%
6034	46 Neutral	¥3.89B	―		―	-7.73%	-303.99%
3628	45 Neutral	¥6.85B	―		―	16.49%	-483.70%
4263	45 Neutral	¥15.01B	―		―	-79.38%	-1239.83%
2934	44 Neutral	¥8.82B	97.09		―	31.42%	34.01%