MEDINET Co., Ltd. (2370) AI Stock Analysis

• Market Cap: ¥9.27B
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -0.97%
• EPS Growth: 1.19%
• Country: JP
• Employees: 92
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.53
• Shares Outstanding: 264,729,200
• 10 Day Avg. Volume: 2,915,890
• 30 Day Avg. Volume: 1,911,513
• PEG Ratio: 0.38
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 15.16
• P/FCF Ratio: -8.76
• 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

• Rating: 45 Neutral
• Price Target: ¥34.00 ▲(0.00% Upside)

The overall stock score reflects significant financial challenges, including declining revenues and negative cash flows, which are the most impactful factors. Neutral technical indicators and a concerning valuation further contribute to the low score.

MEDINET Co., Ltd. Business Overview & Revenue Model

Company Description

MEDINET Co., Ltd. (2370) is a leading company in the healthcare and medical technology sector, specializing in the development and provision of innovative solutions for medical imaging and diagnostics. The company focuses on integrating advanced technologies into healthcare services, enhancing patient outcomes through its core products, which include imaging systems, diagnostic tools, and healthcare IT solutions. MEDINET is committed to improving the efficiency of medical practices by providing reliable and cutting-edge technology to healthcare professionals.

How the Company Makes Money

MEDINET generates revenue primarily through the sale of its medical imaging systems and diagnostic tools, which are utilized by hospitals and clinics across various healthcare settings. The company also earns income from software solutions that enhance medical workflows and data management. Additional revenue streams include maintenance services, training programs for healthcare staff, and partnerships with healthcare institutions for joint ventures in research and development. Significant collaborations with medical device manufacturers and technology firms further boost its earnings by expanding its market reach and enhancing product offerings.

MEDINET Co., Ltd. Financial Statement Overview

Summary

MEDINET Co., Ltd. faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. Despite a stable balance sheet with low leverage, the company's profitability and cash flow generation need improvement for long-term viability.

Income Statement

MEDINET Co., Ltd. has faced declining revenue over recent years, with a revenue drop from 783 million in 2020 to 769 million in 2024. The company consistently reports negative EBIT and net income, indicating ongoing operational challenges. Gross profit margin has also decreased, reflecting increased cost pressures. The biotechnology industry often experiences high R&D costs, which can affect profitability.

Balance Sheet

The company maintains a strong equity base with a high equity ratio due to relatively low total liabilities compared to stockholders' equity. Debt levels are minimal, resulting in a low debt-to-equity ratio, which suggests financial stability. However, the declining equity over the years indicates potential risks in maintaining this position.

Cash Flow

Operating cash flow has been consistently negative, reflecting ongoing cash burn. Free cash flow also remains negative, with no clear growth in cash generation capacity. The company relies heavily on financing activities to fund operations, which could pose sustainability risks if external funding becomes less accessible.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	724.63M	768.50M	661.54M	633.67M	683.03M	783.03M
Gross Profit	128.40M	82.67M	98.25M	127.92M	180.42M	291.38M
EBITDA	-1.29B	-1.16B	-1.33B	-1.17B	-718.52M	-672.89M
Net Income	-1.41B	-1.28B	-1.44B	-1.25B	-843.39M	-842.01M
Balance Sheet
Total Assets	6.35B	5.70B	5.63B	6.08B	5.38B	5.25B
Cash, Cash Equivalents and Short-Term Investments	5.03B	4.65B	4.40B	4.50B	4.10B	3.64B
Total Debt	91.32M	781.00K	2.31M	4.30M	7.69M	16.46M
Total Liabilities	548.63M	509.27M	590.20M	566.14M	474.95M	442.99M
Stockholders Equity	5.80B	5.19B	5.04B	5.51B	4.90B	4.81B
Cash Flow
Free Cash Flow	211.20M	-1.33B	-1.35B	-1.20B	-1.01B	-653.01M
Operating Cash Flow	211.20M	-1.27B	-1.26B	-1.16B	-974.70M	-632.92M
Investing Cash Flow	0.00	65.14M	3.27M	-20.23M	344.25M	86.20M
Financing Cash Flow	0.00	1.46B	1.16B	1.58B	1.08B	2.79B

MEDINET Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2370, the sentiment is Negative. The current price of 34 is below the 20-day moving average (MA) of 35.25, below the 50-day MA of 36.60, and below the 200-day MA of 35.08, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2370.

MEDINET Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4584	55 Neutral	¥12.94B	37.01	―	―	120.34%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4588	51 Neutral	¥19.22B	―	―	―	-9.04%	2.12%
2370	45 Neutral	¥9.27B	―	―	―	-0.97%	1.19%
4893	41 Neutral	¥7.14B	―	―	―	-96.99%	29.33%
4571	40 Underperform	¥11.95B	―	-31.29%	―	51.72%	-34.93%