Medical System Network Co., Ltd. (4350) AI Stock Analysis

• Market Cap: ¥14.55B
• Dividend Yield: 2.45%
• Average Volume (3M): 54.26K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.76
• Revenue Growth: 5.93%
• EPS Growth: -36.11%
• Country: JP
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 2.69
• Shares Outstanding: 30,642,600
• 10 Day Avg. Volume: 36,400
• 30 Day Avg. Volume: 54,256
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥527.00
• Price Target Upside: 9.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥527.00 ▲(9.34% Upside)

The overall stock score of 70 reflects strong financial performance and attractive valuation. The company's consistent revenue growth and stable profitability are significant strengths, while the technical indicators suggest a neutral market sentiment. The absence of earnings call data and corporate events limits additional insights.

Medical System Network Co., Ltd. Business Overview & Revenue Model

Company Description

Medical System Network Co., Ltd. distributes pharmaceutical products for pharmacies, hospitals, clinics, and pharmaceutical wholesalers. The company operates through Community Pharmacy Network, Leasing and Facility-related, Meal Catering, and Other Segments. The Community Pharmacy Network segment facilitates purchase and sale of pharmaceuticals between pharmacies, hospitals, clinics, and pharmaceutical wholesalers. This segment also offers inventory management and inventory clearance services, as well as manufactures and markets pharmaceuticals, and involved in negotiating prices with pharmaceutical wholesalers. It operates pharmaceutical platform for transition of pharmacies. Its Leasing and Facility-related segment involves in building leasing services and develops locations for pharmacies, as well as offers consulting services for physicians. The company's Meal Catering segment provides meal catering services for hospitals and welfare facilities. In addition, the company offers nursing care and advisory counseling services for medical treatment. Medical System Network Co., Ltd. was founded in 1999 and is headquartered in Sapporo, Japan.

How the Company Makes Money

Medical System Network Co., Ltd. generates revenue primarily through the operation and management of its network of dispensing pharmacies. The company's key revenue streams include the sale of prescription drugs, over-the-counter medications, and health-related products through its pharmacies. Additionally, the company earns income by providing pharmaceutical distribution and logistics services, healthcare consulting, and drug information management solutions. Significant partnerships with healthcare providers, pharmaceutical companies, and other stakeholders in the healthcare sector enhance its service offerings and contribute to its earnings.

Medical System Network Co., Ltd. Financial Statement Overview

Summary

Medical System Network Co., Ltd. demonstrates solid financial health with consistent revenue growth and stable profitability. The company maintains a robust balance sheet with moderate leverage and a strong equity position. However, recent declines in free cash flow and net income margins indicate areas for improvement.

Income Statement

The company shows a consistent revenue growth with a positive trajectory, increasing from 104.257 billion to 122.387 billion over five years. Gross and net profit margins have been stable, although the net profit margin slightly declined in the last year. EBIT and EBITDA margins indicate operational efficiency, but there's a slight decrease in EBIT compared to earlier years.

Balance Sheet

The balance sheet reflects a stable equity base, with stockholders' equity increasing from 9.419 billion to 16.26 billion. The debt-to-equity ratio suggests moderate leverage, though slightly elevated compared to industry norms. The equity ratio shows a favorable position, indicating a strong asset base relative to equity.

Cash Flow

Operating cash flow has remained healthy, but a decline is noted in the latest year. Free cash flow shows variability, with a significant reduction recently. The company maintains a positive operating cash flow to net income ratio, indicative of good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.39B	122.39B	115.36B	109.55B	106.69B	104.26B
Gross Profit	50.74B	49.60B	47.93B	45.92B	44.43B	42.41B
EBITDA	6.42B	6.42B	6.90B	6.25B	7.05B	7.18B
Net Income	1.26B	1.26B	1.86B	1.61B	2.39B	2.20B
Balance Sheet
Total Assets	70.59B	70.59B	68.15B	66.22B	62.94B	64.45B
Cash, Cash Equivalents and Short-Term Investments	8.46B	8.46B	8.27B	8.14B	8.20B	10.12B
Total Debt	29.79B	29.79B	29.18B	30.52B	29.57B	32.56B
Total Liabilities	54.24B	54.24B	52.93B	51.73B	49.66B	53.26B
Stockholders Equity	16.26B	16.26B	15.17B	14.45B	13.27B	11.17B
Cash Flow
Free Cash Flow	0.00	1.75B	5.62B	3.37B	1.88B	3.68B
Operating Cash Flow	0.00	4.46B	7.72B	4.97B	4.01B	5.21B
Investing Cash Flow	0.00	-3.73B	-3.65B	-2.11B	-2.51B	-1.49B
Financing Cash Flow	0.00	-544.00M	-3.94B	-2.92B	-3.42B	-5.31B

Medical System Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 482.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4350, the sentiment is Positive. The current price of 482 is below the 20-day moving average (MA) of 483.60, below the 50-day MA of 483.04, and above the 200-day MA of 438.03, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 54.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4350.

Medical System Network Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3417	75 Outperform	19.54B	6.83	8.52%	1.83%	3.70%	37.00%
7679	74 Outperform	45.28B	10.31	11.53%	1.22%	6.65%	12.77%
4350	70 Outperform	¥14.55B	11.99		2.45%	5.93%	-36.11%
3544	67 Neutral	11.06B	15.18	7.83%	1.25%	4.08%	51.63%
8095	60 Neutral	21.14B	-10.85	-10.03%	3.44%	12.75%	-191.21%
2796	58 Neutral	6.33B	-16.62	-5.34%	2.60%	16.60%	-19.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medical System Network Co., Ltd. Corporate Events

Medical System Network Co., Ltd. Reports Q1 2025 Financial Results

Medical System Network Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a 5.7% increase in net sales compared to the previous year. However, the company experienced a decline in operating and ordinary profits by 6.1% and 13.6%, respectively, with profit attributable to owners of the parent dropping by 54%. Despite these challenges, the company maintains its dividend forecast for the fiscal year ending March 31, 2026, indicating stability in shareholder returns.