MTI Ltd. (9438) AI Stock Analysis

• Market Cap: ¥37.11B
• Dividend Yield: 2.58%
• Average Volume (3M): 62.04K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.47
• 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): 10.87
• 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): 34.2
• Revenue Forecast (FY): ¥31.80B

• Rating: 71 Outperform
• Price Target: ¥757.00 ▲(4.99% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong financial performance (high margins, low leverage, and improved cash flow), partially offset by weak technicals (trading below major moving averages with negative MACD and a low RSI). Valuation is supportive with a reasonable P/E and a mid-level dividend yield.

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

Strong overall fundamentals: solid profitability (gross margin 74.3%, net margin 11.4%), improving operating efficiency (better EBIT/EBITDA margins), low leverage (debt-to-equity 0.09), and strong cash generation (operating cash flow to net income 1.66; free cash flow up 103.5%). The main constraint is slowing revenue growth (latest year +1.61%).

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	29.91B	27.67B	26.80B	26.48B	25.74B
Gross Profit	22.22B	20.40B	18.37B	18.69B	18.74B
EBITDA	6.02B	5.17B	2.91B	1.44B	2.45B
Net Income	3.40B	2.36B	753.22M	-930.48M	-1.16B
Balance Sheet
Total Assets	33.35B	29.69B	29.16B	29.27B	31.91B
Cash, Cash Equivalents and Short-Term Investments	17.82B	14.83B	13.72B	12.10B	15.54B
Total Debt	1.69B	2.43B	3.18B	3.93B	2.88B
Total Liabilities	10.90B	10.54B	11.57B	11.39B	10.67B
Stockholders Equity	18.41B	15.47B	14.01B	14.18B	17.59B
Cash Flow
Free Cash Flow	5.58B	2.74B	3.60B	-3.59B	1.74B
Operating Cash Flow	5.66B	4.13B	4.76B	-1.39B	3.52B
Investing Cash Flow	-1.02B	-1.37B	-1.35B	-2.46B	-2.00B
Financing Cash Flow	-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 above the 20-day moving average (MA) of 704.40, above the 50-day MA of 720.72, and below the 200-day MA of 796.93, indicating a bearish trend. The MACD of -11.37 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 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
4320	77 Outperform	¥21.36B	12.35	―	4.99%	8.77%	1078.88%
3939	75 Outperform	¥26.32B	22.22	―	1.39%	9.85%	20.83%
3649	73 Outperform	¥23.87B	18.51	―	1.75%	-2.05%	-9.92%
9438	71 Outperform	¥37.11B	11.27	―	2.58%	8.10%	42.93%
3902	63 Neutral	¥65.51B	226.94	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥266.64B	39.51	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

MTI Ltd. Corporate Events

MTI Sets Out Q1 FY2026 Results and DX Growth Strategy

MTI Ltd. released materials for its Q1 FY2026 financial results briefing, outlining consolidated profit and loss, SG&A trends, balance sheet data, and segment performance. The company highlighted its earnings forecast for FY2026 and detailed the status and strategy of its key healthcare and school DX services, signaling continued emphasis on digital healthcare platforms and educational digital transformation to drive medium- to long-term growth.

The briefing underscores MTI’s focus on expanding cloud-based medication history services and maternal and childcare apps, alongside school DX solutions, as core growth drivers. By presenting both short-term financial highlights and a longer-term strategic roadmap, MTI aims to reinforce its positioning in the healthcare and education DX markets and provide stakeholders with visibility on how these services support its future earnings profile.

The most recent analyst rating on (JP:9438) stock is a Buy with a Yen815.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Books Higher Q1 Revenue, Keeps Fiscal 2026 Outlook and Raises Dividend

MTI Ltd. reported consolidated net sales of ¥7.77 billion for the quarter ended Dec. 31, 2025, up 6.9% year on year, with operating income rising 16.4% to ¥835 million and profit attributable to owners of parent edging up 2.4% to ¥603 million. The company’s equity ratio improved to 58.5% as total assets decreased and net assets were largely stable, underscoring a solid financial position.

For fiscal 2026, MTI forecasts modest full-year revenue growth to ¥31 billion and an increase in operating income, while expecting a sharp year-on-year decline in profit attributable to owners of parent, reflecting a high comparison base or anticipated cost pressures. The company plans to lift the annual dividend to ¥20 per share from ¥19, signaling continued shareholder returns despite the projected earnings drop and positioning itself cautiously amid a slow-growth environment.

The most recent analyst rating on (JP:9438) stock is a Buy with a Yen815.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI to Divest Video Market Subsidiary to PLAY Inc. as It Refocuses on Core DX Businesses

MTI Ltd. has decided to transfer all shares of its wholly owned video streaming subsidiary, Video Market Corporation, to PLAY Inc., a move that will remove Video Market from MTI’s scope of consolidated subsidiaries. The divestment, slated for completion on February 6, 2026, underscores MTI’s strategy of selectively allocating management resources toward its core healthcare and school DX operations, while Video Market, which has recently faced declining sales and volatile earnings, will be repositioned under a specialist video solutions player, potentially altering competitive dynamics in Japan’s video distribution and solutions market.

The most recent analyst rating on (JP:9438) stock is a Buy with a Yen815.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

MTI Introduces New Restricted Stock Grant for Executives and Cancels Treasury Shares

MTI Ltd. has approved the issuance of 52,400 new common shares as restricted stock remuneration to 31 internal directors and executive officers, with a total value of ¥38.46 million and an issue price of ¥734 per share, while also resolving to cancel treasury stock. The restricted stock plan is structured with staged transfer restriction periods running through May 2029 and conditions tied to continued service, reinforcing retention and tighter alignment between management compensation and the company’s share performance, which is intended to support medium- to long-term earnings growth and corporate value for shareholders.

The most recent analyst rating on (JP:9438) stock is a Buy with a Yen815.00 price target. To see the full list of analyst forecasts on MTI Ltd. stock, see the JP:9438 Stock Forecast page.

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.