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M3 Inc (JP:2413)
:2413
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M3 (2413) AI Stock Analysis

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JP:2413

M3

(2413)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
¥1,744.00
▼(-8.43% Downside)
Action:Upgraded
Date:07/30/26
The score is driven primarily by strong financial quality (re-accelerating growth, solid margins, low leverage, and strong free cash flow) and supportive technical trend (price above key moving averages). The main offset is valuation, as the P/E is elevated relative to the modest dividend yield.
Positive Factors
Revenue Re-acceleration
Sustained 14.5% revenue growth indicates durable demand for M3’s healthcare platforms and services. As enterprise contracts and subscription offerings scale, revenue momentum supports reinvestment in products and international expansion, underpinning multi-quarter structural growth rather than a fleeting uptick.
Negative Factors
Margin Compression Trend
Observed margin compression versus prior years signals structural pressures: higher costs, competitive pricing, or a shift toward lower-margin services. If this mix or cost pressure persists, it could constrain sustainable operating margins and reduce long-term profitability despite revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Re-acceleration
Sustained 14.5% revenue growth indicates durable demand for M3’s healthcare platforms and services. As enterprise contracts and subscription offerings scale, revenue momentum supports reinvestment in products and international expansion, underpinning multi-quarter structural growth rather than a fleeting uptick.
Read all positive factors

M3 (2413) vs. iShares MSCI Japan ETF (EWJ)

M3 Business Overview & Revenue Model

Company Description
M3, Inc. is a Japanese company that delivers a broad spectrum of internet-based services, predominantly catering to medical professionals and the broader healthcare industry. Its operations are segmented into five key areas: Medical Platform, Evid...
How the Company Makes Money
M3 makes money by operating healthcare and life-sciences platforms and selling services to both healthcare professionals (via platform offerings) and, more significantly, to enterprise customers such as pharmaceutical and medical device companies ...

M3 Financial Statement Overview

Summary
Strong overall fundamentals supported by re-accelerating revenue growth (14.5% in 2026), healthy profitability (~50% gross margin and ~14% net margin), and robust free cash flow (FCF ~0.89x net income). Key risks are margin compression versus 2022–2024 and uneven operating cash flow conversion (OCF ~0.70x net income in 2026).
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
80
Positive
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue351.36B284.90B238.88B230.82B208.16B
Gross Profit175.84B154.36B140.53B135.19B123.27B
EBITDA94.52B77.71B78.11B81.82B102.51B
Net Income49.10B40.48B45.27B49.03B63.84B
Balance Sheet
Total Assets637.40B581.74B490.78B400.64B345.98B
Cash, Cash Equivalents and Short-Term Investments156.18B166.75B179.74B146.25B141.12B
Total Debt33.15B51.42B31.78B10.38B8.30B
Total Liabilities190.75B168.94B124.08B91.13B82.03B
Stockholders Equity408.22B378.44B351.92B302.63B257.84B
Cash Flow
Free Cash Flow62.58B45.45B52.90B51.20B50.40B
Operating Cash Flow70.26B51.74B58.31B57.11B52.11B
Investing Cash Flow-15.89B-39.15B-29.31B-27.52B-26.82B
Financing Cash Flow-35.47B-27.16B-712.00M-17.25B-12.96B

M3 Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥1.04T22.3912.38%1.16%15.76%13.53%
63
Neutral
¥220.88B32.380.43%18.89%11.66%
56
Neutral
¥68.42B67.166.35%23.30%-56.05%
54
Neutral
¥11.18B40.305.30%15.59%-80.10%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
43
Neutral
¥2.18B-4.0618.86%38.80%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2413
M3
1,538.00
-602.97
-28.16%
JP:4480
Medley
2,078.00
-1,122.00
-35.06%
JP:4438
Welby Inc.
257.00
-65.00
-20.19%
JP:4483
JMDC Inc.
3,430.00
-881.03
-20.44%
JP:9341
GENOVA Inc.
640.00
-64.07
-9.10%

M3 Corporate Events

M3 Issues Cautionary Presentation on Strategic Outlook
Aug 6, 2026
M3, Inc. has released a presentation that outlines its forecasts, plans, and management targets, emphasizing that these projections are based on current data and may differ from actual future results. The company also notes that some external info...
M3 Introduces New Stock Option Plan to Align Employees with Long-Term Shareholder Value
Aug 6, 2026
M3, Inc. has approved the issuance of new stock options in the form of share acquisition rights, aimed at boosting employee motivation and aligning management with shareholder interests over the medium to long term. The options will be granted to ...
M3 posts modest sales growth but weaker profits, keeps full-year outlook
Aug 6, 2026
M3, Inc. reported consolidated revenue of ¥90.1 billion for the three months ended June 30, 2026, a 4.5% year-on-year increase, while operating profit declined 8.6% and profit attributable to owners of the parent fell 23.4%, reflecting margin...
M3 Reports No Share Buybacks to Date Under Approved ¥20 Billion Program
Aug 3, 2026
M3, Inc. reported that during the period from July 1 to July 31, 2026, it did not repurchase any of its own common shares under the share buyback program authorized by its board on May 1, 2026. The board’s resolution permits buybacks of up t...
M3 Leaves Share Buyback Authorization Untapped Through June 2026
Jul 1, 2026
M3, Inc. reported that during the period from June 1 to June 30, 2026, it did not repurchase any of its own common shares under a previously authorized share buyback program, resulting in zero shares bought and no capital deployed. The buyback fra...
M3 Affirms Independence Despite Sony’s 34.5% Stake and Reports No Dealings in FY2025
Jun 12, 2026
M3, Inc., a Tokyo-based digital healthcare and medical information services company listed on the TSE Prime Market, counts Sony Group Corporation as an other affiliate company holding 34.5% of its voting rights. Despite this significant stake, M3 ...
M3 to Consolidate WISEMAN Through Share Acquisition
Jun 5, 2026
M3, Inc. has announced the acquisition of shares in WISEMAN Co., Ltd., leading to the consolidation of WISEMAN as a group company. The move signals an effort by M3 to integrate WISEMAN more tightly into its corporate structure, which may enhance o...
M3 to Acquire WISEMAN to Boost Healthcare and Nursing Care DX
Jun 5, 2026
M3, Inc. has decided to acquire all outstanding shares of WISEMAN Co., Ltd., a software developer specializing in systems for medical, nursing care, and welfare institutions, thereby making it a consolidated subsidiary. WISEMAN, founded in 1983 an...
M3 Reports No Share Buybacks So Far Under ¥20 Billion Repurchase Plan
Jun 1, 2026
M3, Inc. reported that it did not repurchase any of its own common shares during the period from May 2 to May 31, 2026, despite having board authorization to conduct buybacks via open-market purchases on the Tokyo Stock Exchange. The company still...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2026