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Mental Health Technologies Co. Ltd. (JP:9218)
:9218
Japanese Market
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Mental Health Technologies Co. Ltd. (9218) AI Stock Analysis

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JP:9218

Mental Health Technologies Co. Ltd.

(9218)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
¥679.00
▼(-17.20% Downside)
Action:Downgraded
Date:02/18/26
The score is primarily supported by improving 2025 fundamentals and cash flow, but is held back by elevated leverage and sharply compressed margins. Technicals are weak with the stock trading below key moving averages and negative MACD, and valuation remains relatively expensive (P/E ~32) with only a modest dividend yield.
Positive Factors
Free cash flow recovery
The strong improvement in operating and free cash flow in 2025 provides durable liquidity to fund operations, invest in product development, and service debt. Free cash flow roughly matching net income implies earnings quality improved, supporting continued reinvestment or balance-sheet repair over months.
Negative Factors
Elevated leverage
Sharp increase in leverage materially limits financial flexibility; higher interest and repayment obligations constrain the company’s ability to invest or absorb shocks. Elevated debt makes the firm more vulnerable to margin pressure and slows capacity for structural deleveraging over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow recovery
The strong improvement in operating and free cash flow in 2025 provides durable liquidity to fund operations, invest in product development, and service debt. Free cash flow roughly matching net income implies earnings quality improved, supporting continued reinvestment or balance-sheet repair over months.
Read all positive factors

Mental Health Technologies Co. Ltd. (9218) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Operating in Japan, Mental Health Technologies Co.,Ltd. offers a diverse portfolio of services, encompassing mental wellness solutions, career development assistance for medical professionals, and digital advertising. The company additionally mana...
How the Company Makes Money
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Mental Health Technologies Co. Ltd. Financial Statement Overview

Summary
Income statement and cash flow show a 2025 recovery (re-accelerating revenue growth, return to profitability, and stronger operating/free cash flow). However, the balance sheet is a major constraint: leverage is elevated (debt-to-equity ~1.67 in 2025 vs. ~0.28–0.30 in 2022–2023), and margins have structurally compressed (gross margin down to ~32% in 2025 with a thin ~4% net margin).
Income Statement
62
Positive
Balance Sheet
44
Neutral
Cash Flow
66
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.73B6.44B5.13B2.61B2.29B1.45B
Gross Profit2.07B2.03B1.76B1.42B1.40B745.80M
EBITDA790.05M661.94M257.58M534.92M396.89M163.06M
Net Income239.32M254.90M-29.78M441.37M265.12M161.83M
Balance Sheet
Total Assets5.80B5.37B4.63B1.73B1.30B663.62M
Cash, Cash Equivalents and Short-Term Investments1.13B1.49B1.12B913.71M659.51M423.50M
Total Debt3.07B2.62B2.57B332.49M183.77M188.52M
Total Liabilities4.28B3.80B3.33B618.32M640.75M416.20M
Stockholders Equity1.53B1.57B1.29B1.12B655.37M247.42M
Cash Flow
Free Cash Flow0.00558.09M318.71M146.70M364.78M199.36M
Operating Cash Flow0.00631.99M345.90M177.54M377.49M202.14M
Investing Cash Flow0.00-324.30M-2.15B-90.61M-260.33M-20.79M
Financing Cash Flow0.0067.82M2.00B167.28M118.85M53.33M

Mental Health Technologies Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price820.00
Price Trends
50DMA
706.16
Positive
100DMA
724.36
Positive
200DMA
773.88
Negative
Market Momentum
MACD
9.11
Negative
RSI
65.10
Neutral
STOCH
61.58
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 820 is above the 20-day moving average (MA) of 715.20, above the 50-day MA of 706.16, and above the 200-day MA of 773.88, indicating a neutral trend. The MACD of 9.11 indicates Negative momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 61.58 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥1.32T26.1712.15%1.01%23.33%21.65%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
¥12.21B-25.34-39.26%-69.48%
52
Neutral
¥7.73B32.0117.70%-27.54%
51
Neutral
¥68.81B67.945.76%23.30%-56.05%
43
Neutral
¥2.16B-4.0718.86%38.80%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9218
Mental Health Technologies Co. Ltd.
736.00
101.34
15.97%
JP:2413
M3
1,898.00
96.59
5.36%
JP:4480
Medley
2,102.00
-1,163.00
-35.62%
JP:4263
SUSMED,Inc.
730.00
112.00
18.12%
JP:4438
Welby Inc.
258.00
-108.00
-29.51%
JP:366A
Wellness Communications Corporation
1,093.00
-364.62
-25.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026