MTI Ltd. (9438) AI Stock Analysis

• Market Cap: ¥39.59B
• Dividend Yield: 2.58%
• Average Volume (3M): 62.04K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.55
• Revenue Growth: 8.10%
• EPS Growth: 42.93%
• Country: JP
• Employees: 1,184
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 24.28
• Shares Outstanding: 60,435,200
• 10 Day Avg. Volume: 33,460
• 30 Day Avg. Volume: 62,043
• PEG Ratio: 0.29
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 7.62
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥800.00 ▲(10.96% Upside)

MTI Ltd.'s strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust profitability and effective cash flow management contribute positively. However, the bearish technical indicators suggest caution, as the stock is trading below key moving averages and shows signs of being oversold. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable and expanding market presence, which is crucial for long-term business sustainability and competitiveness.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Low Leverage

Low leverage reduces financial risk and interest obligations, providing stability and enabling strategic investments without excessive debt burden.

Negative Factors

Decelerating Growth Rates

Decelerating growth rates could signal challenges in capturing new market opportunities, potentially impacting future revenue and market share.

Moderate Equity Ratio

A moderate equity ratio may indicate less efficient asset utilization, which could affect the company's ability to maximize shareholder value.

Slowed Revenue Growth

Slowed revenue growth may hinder the company's ability to scale operations and compete effectively, impacting long-term profitability and market position.

MTI Ltd. Business Overview & Revenue Model

Company Description

MTI Ltd. (9438) is a publicly traded company primarily engaged in the development and provision of innovative technology solutions, focusing on sectors such as telecommunications, information technology, and consumer electronics. The company specializes in a range of products and services including software development, IT consulting, and hardware manufacturing, catering to both enterprise clients and individual consumers.

How the Company Makes Money

MTI Ltd. generates revenue through multiple streams, including the sale of software solutions and IT services, hardware sales, and ongoing maintenance contracts. The company typically enters into long-term contracts with enterprise clients, which provide a stable revenue base. Additionally, MTI Ltd. may engage in strategic partnerships with other technology firms to enhance its product offerings and expand its market reach, further contributing to its earnings through collaborative projects and shared technology initiatives. The company's focus on innovation and customer satisfaction plays a crucial role in driving repeat business and attracting new clients.

MTI Ltd. Financial Statement Overview

Summary

MTI Ltd. exhibits strong financial health with consistent revenue growth, robust profitability, and effective cash flow management. The company has maintained a low leverage position, enhancing its financial stability. While growth rates have decelerated, the overall financial performance remains solid, positioning the company well for future opportunities in the healthcare information services industry.

Income Statement

MTI Ltd. has demonstrated consistent revenue growth with a 1.61% increase in the latest year, supported by strong gross and net profit margins of 74.3% and 11.4% respectively. The company has improved its EBIT and EBITDA margins, indicating enhanced operational efficiency. However, the growth rate has slowed compared to previous years, which could be a concern for future expansion.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.09, reflecting prudent financial management. The return on equity is strong at 18.5%, indicating effective use of shareholder funds. However, the equity ratio is moderate, suggesting room for improvement in asset management.

Cash Flow

MTI Ltd. has shown a significant improvement in free cash flow, with a growth rate of 103.5%. The operating cash flow to net income ratio is robust at 1.66, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio is slightly lower, suggesting potential reinvestment needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.44B	29.91B	27.67B	26.80B	26.48B	25.74B
Gross Profit	21.93B	22.22B	20.40B	18.37B	18.69B	18.74B
EBITDA	5.17B	6.02B	5.17B	2.91B	1.44B	2.45B
Net Income	2.18B	3.40B	2.36B	753.22M	-930.48M	-1.16B
Balance Sheet
Total Assets	32.07B	33.35B	29.69B	29.16B	29.27B	31.91B
Cash, Cash Equivalents and Short-Term Investments	16.87B	17.82B	14.83B	13.72B	12.10B	15.54B
Total Debt	1.88B	1.69B	2.43B	3.18B	3.93B	2.88B
Total Liabilities	11.27B	10.90B	10.54B	11.57B	11.39B	10.67B
Stockholders Equity	16.84B	18.41B	15.47B	14.01B	14.18B	17.59B
Cash Flow
Free Cash Flow	0.00	5.58B	2.74B	3.60B	-3.59B	1.74B
Operating Cash Flow	0.00	5.66B	4.13B	4.76B	-1.39B	3.52B
Investing Cash Flow	0.00	-1.02B	-1.37B	-1.35B	-2.46B	-2.00B
Financing Cash Flow	0.00	-1.63B	-1.64B	-1.78B	343.54M	649.18M

MTI Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 721.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9438, the sentiment is Negative. The current price of 721 is below the 20-day moving average (MA) of 732.65, below the 50-day MA of 736.46, and below the 200-day MA of 805.12, indicating a bearish trend. The MACD of -1.97 indicates Positive momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 24.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9438.

MTI Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3649	79 Outperform	¥22.03B	18.50	―	1.75%	-2.05%	-9.92%
3939	76 Outperform	¥23.38B	21.05	―	1.39%	9.85%	20.83%
4320	74 Outperform	¥18.79B	11.30	―	4.99%	8.77%	1078.88%
9438	72 Outperform	¥39.59B	11.91	―	2.58%	8.10%	42.93%
4483	61 Neutral	¥221.76B	36.05	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	49 Neutral	¥65.87B	-152.73	―	0.39%	6.17%	-8918.66%

MTI Ltd. Corporate Events

MTI Affirms Independence Despite 34% Stake Held by Hikari Tsushin

MTI Ltd. has disclosed that HIKARI TSUSHIN, INC. is classified as an “other affiliated company,” holding 34.28% of MTI’s voting rights through multiple investment partnerships and related entities as of September 30, 2025. Despite this significant stake and the appointment of HIKARI TSUSHIN’s President and Representative Director as an outside auditor on MTI’s board, the company stresses that its independent decision-making remains intact, citing the absence of business constraints, secondments, or material transactional relationships with the affiliate, and framing the outside appointment as a move to strengthen its management system.

The most recent analyst rating on (JP:9438) stock is a Buy with a Yen800.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Shareholders Approve Dividend Payout and Board Slate at 30th AGM

MTI Ltd. reported the results of its 30th annual general meeting of shareholders held on December 20, 2025, where investors approved all proposals, including a year-end dividend of ¥10 per share, totaling ¥556.87 million, with an effective date of December 22, 2025. Shareholders also re-elected ten directors, including President and CEO Toshihiro Maeta, and elected Nariki Yasuda as statutory auditor, with each nominee receiving strong support well above required thresholds, underscoring solid backing for the current management and governance structure.

The most recent analyst rating on (JP:9438) stock is a Buy with a Yen800.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Ltd. Evaluates Board Effectiveness, Plans Improvements

MTI Ltd. has conducted an evaluation of its Board of Directors’ effectiveness, revealing that while the board generally performs well, improvements are needed in areas such as CEO succession planning, sustainability response, and stakeholder dialogue. The company plans to address these issues to enhance corporate governance and value over the medium to long term.

The most recent analyst rating on (JP:9438) stock is a Hold with a Yen871.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Ltd. Announces Executive Officer Changes

MTI Ltd. has announced changes in its executive officers, effective January 1, 2026, following a decision by the Board of Directors. These changes involve key positions in the Technology and Mobile Services Sales Divisions, indicating a strategic realignment that could impact the company’s operational focus and market strategy.

The most recent analyst rating on (JP:9438) stock is a Hold with a Yen871.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Ltd. Announces Increased Dividend Amid Record Profits

MTI Ltd., a company listed on the TSE Prime, has announced a decision by its Board of Directors to pay a dividend from surplus, with a record date of September 30, 2025. The dividend per share has been increased to 10 yen, reflecting a significant rise in profit attributable to owners of the parent, and aligning with the company’s medium-term policy to maintain a shareholder return ratio of approximately 35%. This decision underscores MTI Ltd.’s focus on enhancing market capitalization and distributing profits to shareholders.

The most recent analyst rating on (JP:9438) stock is a Hold with a Yen871.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Ltd. Reports Increased Net Sales Amidst Financial Discrepancies

MTI Ltd. reported a 5.7% increase in net sales for the fiscal year ending September 2025, driven by a significant expansion in orders for its corporate digital transformation support business. Despite the increase in net sales, operating income remained stable due to higher advertising and promotion expenses, while ordinary income decreased due to the absence of non-operating income from the previous year. However, net income saw a significant rise due to a special gain from refunded consumption tax and the absence of previous valuation losses.

The most recent analyst rating on (JP:9438) stock is a Hold with a Yen871.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Ltd. Announces Strategic Initiative to Enhance Corporate Value

MTI Ltd. has announced a strategic initiative to enhance its corporate value by focusing on management practices that are conscious of the cost of capital and stock price. This move is expected to impact the company’s operations by aligning its management strategies with shareholder interests, potentially affecting its market positioning and stakeholder relationships.

The most recent analyst rating on (JP:9438) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.