Medical Ikkou Group Co., Ltd. (3353) AI Stock Analysis

Medical Ikkou Group Co., Ltd.

(TSE/TYO:3353)

Select Model

Rating:72Outperform

Price Target:JPY 3,213.00▲(16.67% Upside)

Action:upgraded

Date:04/08/26

The stock scores 72, reflecting a solid financial foundation and attractive valuation, tempered by mixed technical indicators. The strong balance sheet and low P/E provide downside protection, while the high dividend yield adds income appeal. However, thin profit margins and low free cash flow conversion suggest operational efficiency could improve. Technicals show neutral momentum, indicating limited near-term price catalysts.

Positive Factors

Improving Revenue GrowthThe company has maintained positive top-line momentum, with revenue growth improving materially across recent periods. Sustained expansion can support pharmacy scale, strengthen operating leverage over time, and provide a foundation for continued earnings growth.

Negative Factors

Weak Cash ConversionVery weak conversion of accounting earnings into cash raises concerns about working-capital swings or ongoing investment requirements. If persistent, this could constrain reinvestment, dividends, and debt reduction despite reported profitability.

Medical Ikkou Group Co., Ltd. (3353) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 10.39B
Dividend Yield: 4.35%
Average Volume (3M): 1,803
Price to Earnings (P/E): 7.1
Beta (1Y): 0.25
Revenue Growth: 6.91%
EPS Growth: 33.61%
Country: Japan
Employees: 1,608
Sector: Industrials
Sector Strength: 63
Industry: Conglomerates

Medical Ikkou Group Co., Ltd. Business Overview & Revenue Model

Company Description

Medical Ikkou Group Co.,Ltd. is a Japanese enterprise primarily known for managing dispensing pharmacies across the nation. Beyond its extensive pharmacy operations, the company diversified its activities to include the management of various care fac...

How the Company Makes Money

Medical Ikkou Group generates revenue mainly through (1) dispensing pharmacy operations, where it fills outpatient prescriptions issued by clinics and hospitals and receives payments comprised of reimbursed dispensing fees and medicine costs under Ja...

Medical Ikkou Group Co., Ltd. Financial Statement Overview

Summary

Revenue growth and net income increase, with a strong balance sheet (debt-to-equity improved to 0.66) and solid equity. However, profit margins remain thin (net margin 2.3%) and free cash flow conversion is low (18%), indicating room for operational improvement.

Income Statement

70Positive

Balance Sheet

85Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	54.98B	54.98B	48.39B	39.90B	33.90B	33.60B
Gross Profit	6.36B	6.36B	5.61B	4.38B	2.97B	3.37B
EBITDA	2.63B	2.63B	2.46B	2.34B	1.78B	2.15B
Net Income	1.28B	1.28B	1.13B	1.04B	759.60M	852.33M
Balance Sheet
Total Assets	37.52B	37.52B	34.23B	31.66B	27.51B	29.09B
Cash, Cash Equivalents and Short-Term Investments	6.12B	6.12B	6.77B	7.70B	6.44B	7.99B
Total Debt	10.36B	10.36B	10.04B	9.60B	9.15B	11.35B
Total Liabilities	21.24B	21.24B	19.52B	17.82B	14.90B	17.17B
Stockholders Equity	15.63B	15.63B	14.10B	13.24B	12.05B	11.38B
Cash Flow
Free Cash Flow	0	219.98M	201.34M	3.97B	995.40M	812.29M
Operating Cash Flow	0	1.21B	1.20B	4.28B	1.31B	1.14B
Investing Cash Flow	0	-1.81B	-1.13B	-3.22B	-477.52M	539.48M
Financing Cash Flow	0	-283.62M	-1.03B	277.76M	-2.37B	-690.26M

Medical Ikkou Group Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:3353 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7509	79Outperform	JPY 6.90B	4.80	―	3.33%	5.55%	21.45%
JP:3353	72Outperform	JPY 9.54B	7.13	―	4.35%	6.91%	33.61%
JP:7119	69Neutral	JPY 20.71B	17.97	―	2.09%	-1.50%	83.80%
JP:9248	67Neutral	JPY 14.03B	5.21	―	3.85%	8.74%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:2462	56Neutral	JPY 27.96B	12.75	―	4.12%	5.94%	-0.10%
JP:6838	54Neutral	JPY 10.39B	20.87	―	0.88%	―	―

* Industrials Sector Average

Performance Comparison

JP:3353 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3353	Medical Ikkou Group Co., Ltd.	2760.00	256.11	10.23%
JP:2462	LIKE, Inc.	1457.00	18.78	1.31%
JP:6838	Tamagawa Holdings Co., Ltd.	1139.00	353.53	45.01%
JP:7119	halmek holdings Co.,Ltd.	1864.00	552.55	42.13%
JP:7509	I. A Group Corporation	4660.00	635.96	15.80%
JP:9248	People, Dreams & Technologies Group Co., Ltd.	1559.00	11.36	0.73%

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: Aug 04, 2026

Medical Ikkou Group Co., Ltd. AI Stock Analysis