MTI Ltd. (9438) AI Stock Analysis

• Market Cap: ¥39.43B
• Dividend Yield: 2.58%
• Average Volume (3M): 62.04K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.53
• 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: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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. shows strong revenue growth and profitability with a robust balance sheet. However, cash flow variability and recent operational cash flow challenges require attention.

Income Statement

MTI Ltd. has demonstrated robust revenue growth of 6.5% over the past year, with improving profitability evidenced by a current TTM gross profit margin of 74.1% and a net profit margin of 8.2%. The EBIT and EBITDA margins have also strengthened, indicating efficient operations. However, the EBIT margin at 9.5% suggests there is room for further operational improvements.

Balance Sheet

The company's balance sheet shows strong equity with an equity ratio of 54.1% and a low debt-to-equity ratio of 0.14, indicating financial stability. The return on equity is healthy at 14.4%, reflecting effective use of equity in generating profits. However, the overall decrease in stockholders' equity warrants attention.

Cash Flow

MTI Ltd.'s cash flow statement reveals challenges in maintaining consistent free cash flow, with a noticeable decrease in free cash flow growth. The absence of operating cash flow in the TTM period is concerning. Nonetheless, a strong free cash flow to net income ratio in previous years illustrates potential for recovery.

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: Negative
• 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 738.70, below the 50-day MA of 766.32, and below the 200-day MA of 816.93, indicating a bearish trend. The MACD of -11.63 indicates Negative momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 63.92 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	¥23.15B	19.68	―	1.75%	-2.05%	-9.92%
3939	76 Outperform	¥25.61B	23.06	―	1.39%	9.85%	20.83%
4320	74 Outperform	¥17.51B	10.55	―	5.00%	8.77%	1078.88%
9438	72 Outperform	¥39.43B	11.96	―	2.58%	8.10%	42.93%
4483	61 Neutral	¥241.06B	40.72	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	43 Neutral	¥65.75B	-152.46	―	0.39%	6.17%	-8918.66%

MTI Ltd. Corporate Events

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.

MTI Ltd. Reports Strong Operating Income Growth Amid Profit Decline

MTI Ltd. reported a significant increase in operating income for the first three quarters of the fiscal year ending September 30, 2025, with a 33.8% rise compared to the previous year. Despite this, the profit attributable to owners of the parent decreased by 8.1%. The company also announced a revision to its earnings forecasts, indicating a positive outlook for the full fiscal year. These results suggest a strong operational performance, although challenges remain in maintaining profitability. The company’s strategic decisions and market conditions will be crucial in shaping its future performance.

MTI Ltd. Revises Earnings Forecast Upward for FY 2025

MTI Ltd. has revised its consolidated earnings forecast for the fiscal year ending September 30, 2025. The company announced an upward revision in its profit attributable to owners of parent due to an extraordinary income from a consumption tax refund. This adjustment reflects a significant increase in expected profits, highlighting MTI Ltd.’s improved financial performance and potential positive impact on its stakeholders.

MTI Ltd. Announces Extraordinary Income from Tax Refund

MTI Ltd. has announced the posting of extraordinary income due to a consumption tax refund of ¥823 million related to lapsed points in its monthly content services. This adjustment, along with deferred income taxes of ¥252 million, was not included in the company’s previous earnings forecast for the fiscal year ending September 30, 2025. The company is currently assessing the impact of these adjustments and will disclose any necessary revisions to its earnings forecast promptly.