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

• Market Cap: ¥6.77B
• Dividend Yield: N/A
• Average Volume (3M): 50.38K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 1.12
• Revenue Growth: 105.21%
• EPS Growth: 431.02%
• Country: JP
• Employees: 137
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 6.77
• Shares Outstanding: 10,369,300
• 10 Day Avg. Volume: 44,570
• 30 Day Avg. Volume: 50,376
• PEG Ratio: 0.78
• Price to Book (P/B): 15.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.97
• 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: 6.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥702.00 ▲(6.04%Upside)

The overall stock score is influenced primarily by solid financial performance, despite profitability challenges, and reasonable valuation. However, negative technical indicators, including bearish momentum and oversold conditions, weigh down the score.

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

Company Description

Mental Health Technologies Co. Ltd. (9218) is a company focused on providing innovative solutions in the mental health sector. The company specializes in developing digital platforms and applications that support mental health awareness, diagnosis, and treatment. Their core products include mental health assessment tools, therapy management software, and telehealth services designed to improve access to mental healthcare.

How the Company Makes Money

The company generates revenue through a combination of subscription fees for its digital platforms and applications, licensing agreements with healthcare providers, and service fees for telehealth consultations. Key revenue streams include partnerships with hospitals, clinics, and mental health professionals who utilize the company's technology to enhance their service offerings. Additionally, the company collaborates with insurance companies to offer their digital health solutions as part of mental health coverage plans, further contributing to its earnings.

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: Neutral
• Last Price: 662.00
• 50DMA: Negative
• 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 Neutral. The current price of 662 is above the 20-day moving average (MA) of 661.05, below the 50-day MA of 691.70, and below the 200-day MA of 746.85, indicating a neutral trend. The MACD of -8.43 indicates Negative momentum. The RSI at 46.95 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	67 Neutral	¥11.08B	22.73		2.63%	9.21%	-20.04%
9218	60 Neutral	¥6.77B	20.85		―	105.21%	431.02%
Sector *	52 Neutral	$7.51B	0.24	-62.67%	2.30%	16.09%	0.95%
3628	50 Neutral	¥8.09B	―		―	16.49%	-483.70%
6034	50 Neutral	¥4.03B	―		―	-7.73%	-303.99%
4263	45 Neutral	¥10.31B	―		―	-79.38%	-1239.83%
2934	44 Neutral	¥9.79B	―		―	31.42%	34.01%