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

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Medical System Network Co., Ltd.

(TSE/TYO:4350)

Select Model

Rating:48Neutral

Price Target:JPY 549.00▲(6.40% Upside)

Action:reiterated

Date:08/18/26

The overall score is constrained by severe financial weaknesses, primarily the negative cash flow generation which poses a significant risk. The company's reasonable valuation and neutral technical picture provide some stability but are insufficient to offset the fundamental concerns regarding profitability and liquidity.

Positive Factors

Steady Revenue GrowthConsistent revenue growth indicates resilient demand for the company’s healthcare IT and services offerings. Continued expansion provides a durable base for operating scale, supports ongoing investment in digital solutions, and helps preserve market relevance over the next several quarters.

Negative Factors

Declining ProfitabilityRepeated net income declines show that revenue growth is not currently translating into stronger bottom-line performance. Thin operating profitability leaves less room to absorb cost pressure, limits internal funding capacity, and makes sustainable earnings improvement a key requirement for the business.

Medical System Network Co., Ltd. (4350) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 14.99B
Dividend Yield: 2.33%
Average Volume (3M): 111.56K
Price to Earnings (P/E): 17.4
Beta (1Y): 0.35
Revenue Growth: 6.89%
EPS Growth: -55.21%
Country: Japan
Employees: 4,014
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Pharmaceuticals

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

Company Description

Headquartered in Sapporo, Japan, and established in 1999, Medical System Network Co., Ltd. functions as a comprehensive provider within the healthcare industry. Its core business involves the distribution of pharmaceutical products to a diverse range...

Medical System Network Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak. While revenue growth is steady and the balance sheet has deleveraged, profitability is deteriorating with declining margins. Most critically, operating and free cash flow turned sharply negative in the latest year, indicating severe liquidity strain.

Income Statement

40Negative

Balance Sheet

55Neutral

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	134.23B	132.19B	122.39B	115.36B	109.55B	106.69B
Gross Profit	54.03B	52.77B	49.60B	47.93B	45.92B	44.43B
EBITDA	6.28B	6.73B	6.42B	6.90B	6.25B	7.05B
Net Income	870.00M	1.07B	1.26B	1.86B	1.61B	2.39B
Balance Sheet
Total Assets	79.29B	80.10B	70.63B	68.19B	66.27B	62.98B
Cash, Cash Equivalents and Short-Term Investments	7.28B	7.74B	8.46B	8.27B	8.14B	8.20B
Total Debt	30.51B	37.67B	29.79B	29.18B	30.52B	29.57B
Total Liabilities	62.16B	62.68B	54.28B	52.97B	51.78B	49.69B
Stockholders Equity	17.00B	17.29B	16.26B	15.17B	14.45B	13.27B
Cash Flow
Free Cash Flow	0	-5.93B	1.75B	5.62B	3.37B	1.88B
Operating Cash Flow	0	-3.44B	4.46B	7.72B	4.97B	4.01B
Investing Cash Flow	0	-4.04B	-3.73B	-3.65B	-2.11B	-2.51B
Financing Cash Flow	0	6.79B	-544.00M	-3.94B	-2.92B	-3.42B

Medical System Network Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price516.00

Price Trends

50DMA513.99Positive

100DMA495.16Positive

200DMA500.92Positive

Market Momentum

MACD6.69Positive

RSI47.39Neutral

STOCH25.03Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4350, the sentiment is Neutral. The current price of 516.00 is below the 20-day moving average (MA) of 524.80, above the 50-day MA of 513.99, and above the 200-day MA of 500.92, indicating a neutral trend. The MACD of 6.69 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4350.

Medical System Network Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:4350 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3391	81Outperform	JPY 1.11T	19.56	7.13%	1.88%	―	―
JP:7649	69Neutral	JPY 522.71B	16.93	9.94%	1.28%	8.97%	-29.54%
JP:9989	69Neutral	JPY 449.92B	14.48	11.15%	3.39%	4.32%	0.18%
JP:3549	62Neutral	JPY 486.11B	25.31	―	0.29%	12.54%	15.87%
JP:3349	60Neutral	JPY 496.38B	15.67	―	1.29%	8.99%	3.61%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:4350	48Neutral	JPY 15.66B	17.37	―	2.33%	6.89%	-55.21%

* Healthcare Sector Average

Performance Comparison

JP:4350 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4350	Medical System Network Co., Ltd.	516.00	31.09	6.41%
JP:9989	Sundrug Co	3896.00	-233.80	-5.66%
JP:7649	Sugi Holdings Co	1369.50	-366.89	-21.13%
JP:3391	TSURUHA Holdings	2497.00	-167.92	-6.30%
JP:3349	COSMOS Pharmaceutical Corporation	6353.00	-954.70	-13.06%
JP:3549	KUSURI NO AOKI HOLDINGS CO.,LTD.	5045.00	1159.08	29.83%

Medical System Network Co., Ltd. Corporate Events

Medical System Network Grows Healthcare Network but Faces Profit Pressure in Q1 FY2027

Aug 14, 2026

Medical System Network reported consolidated net sales of 33.14 billion yen for the first quarter of the fiscal year ending March 2027, with operating profit at 120 million yen, reflecting rising personnel and system integration costs that weighed on...

Medical System Network Posts Higher Sales but Swings to Quarterly Loss, Keeps Dividend and Full-Year Guidance

Aug 7, 2026

Medical System Network reported consolidated net sales of ¥33.1 billion for the three months ended June 30, 2026, up 6.6% year on year, but profitability deteriorated sharply, with EBITDA down 26.9% and operating profit plunging 71.5%. The quarter sw...

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 18, 2026

Medical System Network Co., Ltd. AI Stock Analysis