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

• Market Cap: ¥8.78B
• Dividend Yield: N/A
• Average Volume (3M): 54.69K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.06
• Revenue Growth: 41.16%
• EPS Growth: 2750.91%
• Country: JP
• Employees: 137
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 9.01
• Shares Outstanding: 10,391,300
• 10 Day Avg. Volume: 35,240
• 30 Day Avg. Volume: 54,690
• PEG Ratio: 2.36
• Price to Book (P/B): 5.77
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 37.54
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥940.00 ▲(7.18% Upside)

The overall stock score of 73 reflects strong technical momentum and solid financial performance, despite challenges in profitability and valuation concerns. The stock's bullish trend is a significant positive, but the high P/E ratio and lack of dividend yield may deter some investors. Addressing profitability and leverage issues could enhance long-term stability.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a successful market strategy and increasing demand for its digital mental health solutions, which supports long-term business expansion and competitive positioning.

Cash Flow Improvement

Improved operating cash flow signifies effective cash management and operational efficiency, providing the company with more resources to invest in growth opportunities and enhance financial stability.

Product and Market Expansion

The company's focus on innovative digital solutions for mental health care positions it well in a growing industry, enhancing its ability to capture market share and drive long-term growth.

Negative Factors

Profitability Challenges

Negative net profit margins highlight ongoing profitability challenges, which could impact the company's ability to reinvest in growth and maintain financial health if not addressed.

Increased Leverage

Higher leverage increases financial risk and could constrain the company's flexibility in managing its capital structure, potentially affecting long-term stability if debt levels continue to rise.

Inconsistent Free Cash Flow

Inconsistent free cash flow growth may limit the company's ability to fund new projects or respond to market opportunities, potentially hindering long-term strategic initiatives.

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

Company Description

Mental Health Technologies Co. Ltd. (9218) specializes in developing innovative digital solutions aimed at enhancing mental wellness and providing accessible mental health care. The company operates within the mental health technology sector, focusing on software applications, teletherapy platforms, and artificial intelligence-driven assessment tools. Its core products are designed to support individuals in managing mental health conditions, facilitating remote therapy sessions, and enhancing the overall patient experience through user-friendly interfaces and data-driven insights.

How the Company Makes Money

Mental Health Technologies Co. Ltd. generates revenue primarily through subscription-based models for its software applications and teletherapy services. Users pay monthly or annual fees to access premium features, including personalized therapy plans, AI-driven assessments, and additional resources. The company also earns revenue from partnerships with healthcare providers and institutions, which utilize its technology to enhance their mental health services. Furthermore, grant funding and collaborations with research organizations contribute to its financial growth, allowing the company to innovate and expand its offerings in the mental health space.

Mental Health Technologies Co. Ltd. Financial Statement Overview

Summary

Mental Health Technologies Co. Ltd. has demonstrated strong revenue growth and efficient cost management, but faces challenges in profitability and increased leverage. The company's cash flow generation is improving, yet inconsistent free cash flow growth and rising debt levels pose potential risks. Overall, the company is on a growth trajectory but needs to address profitability and leverage concerns to ensure long-term financial stability.

Income Statement

The company has shown significant revenue growth over the years, with a notable increase from 2023 to 2024. However, the net profit margin turned negative in 2024, indicating profitability challenges. The gross profit margin remains healthy, suggesting efficient cost management. EBIT and EBITDA margins have decreased, reflecting increased operational expenses.

Balance Sheet

The balance sheet shows a substantial increase in total assets and equity over the years, indicating growth. However, the debt-to-equity ratio has increased significantly, suggesting higher leverage and potential risk. The equity ratio remains stable, but the rise in debt levels could impact financial stability.

Cash Flow

The company has improved its operating cash flow, indicating better cash generation from operations. However, free cash flow growth is inconsistent, and the free cash flow to net income ratio is affected by the negative net income in 2024. The operating cash flow to net income ratio is strong, reflecting efficient cash management despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.88B	5.13B	2.61B	2.29B	1.45B	947.04M
Gross Profit	1.94B	1.84B	1.45B	1.43B	769.72M	451.58M
EBITDA	639.20M	224.92M	559.90M	427.19M	162.13M	-119.87M
Net Income	329.12M	-29.78M	441.37M	265.12M	161.83M	-149.06M
Balance Sheet
Total Assets	4.66B	4.63B	1.73B	1.30B	663.62M	374.45M
Cash, Cash Equivalents and Short-Term Investments	909.50M	1.12B	913.71M	659.51M	423.50M	188.81M
Total Debt	2.38B	2.57B	332.49M	183.78M	188.52M	222.68M
Total Liabilities	3.20B	3.33B	618.32M	640.75M	416.20M	376.76M
Stockholders Equity	1.46B	1.29B	1.12B	655.37M	247.42M	-2.31M
Cash Flow
Free Cash Flow	0.00	199.15M	111.83M	325.17M	181.38M	-120.36M
Operating Cash Flow	0.00	270.51M	177.54M	377.49M	202.14M	-119.72M
Investing Cash Flow	0.00	-2.15B	-90.61M	-260.33M	-20.79M	-642.00K
Financing Cash Flow	0.00	2.08B	167.28M	118.85M	53.33M	203.13M

Mental Health Technologies Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 877.00
• 50DMA: Positive
• 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:9218, the sentiment is Positive. The current price of 877 is above the 20-day moving average (MA) of 838.35, above the 50-day MA of 825.82, and above the 200-day MA of 765.00, indicating a bullish trend. The MACD of 1.60 indicates Positive momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 37.59 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	74 Outperform	¥17.60B	16.72	―	4.95%	8.77%	1106.00%
9218	73 Outperform	¥8.78B	26.60	―	―	41.16%	2750.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4263	45 Neutral	¥15.55B	―	―	―	39.30%	32.06%
6034	45 Neutral	¥3.57B	-13.00	―	―	1.51%	-13.66%
2934	42 Neutral	¥9.68B	120.89	―	―	11.40%	―
3628	41 Neutral	¥7.85B	-2.61	―	―	-4.07%	-88.89%