Mental Health Technologies Co. Ltd. (9218) AI Stock Analysis

Mental Health Technologies Co. Ltd.

(TSE/TYO:9218)

Select Model

Rating:57.4Neutral

Price Target:JPY 860.00▲(13.16% Upside)

Action:reiterated

Date:08/06/26

The overall score of 57.4 reflects a neutral to slightly below-average outlook. Financial performance is mixed, with strong revenue and cash flow offset by margin pressure and debt. Technical indicators show moderate bullish momentum, but valuation remains elevated relative to earnings. Investors should monitor margin trends and debt coverage.

Positive Factors

Revenue growth and profitability recoveryThe return to revenue growth and profitability indicates improved operating traction after a weaker 2024. If sustained, this combination can strengthen internal funding capacity, support reinvestment, and provide a more durable earnings base over the next several quarters.

Negative Factors

Severe margin compressionThe sharp decline in gross margin and thin net margin reduce the company’s buffer against execution setbacks. Lower profitability limits retained cash, makes earnings more sensitive to cost changes, and may constrain the ability to fund growth while preserving financial resilience.

Mental Health Technologies Co. Ltd. (9218) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.05B
Dividend Yield: 1.31%
Average Volume (3M): 23.70K
Price to Earnings (P/E): 33.9
Beta (1Y): 0.55
Revenue Growth: 27.65%
EPS Growth: -28.38%
Country: Japan
Employees: 140
Sector: General
Sector Strength: 55
Industry: Software - Application

Mental Health Technologies Co. Ltd. Business Overview & Revenue Model

Company Description

Operating in Japan, Mental Health Technologies Co.,Ltd. offers a diverse portfolio of services, encompassing mental wellness solutions, career development assistance for medical professionals, and digital advertising. The company additionally manages...

Mental Health Technologies Co. Ltd. Financial Statement Overview

Summary

Revenue growth remains solid (9.4% in FY2025) and cash flow generation is robust, but profitability margins have declined significantly and leverage is moderate. The income statement shows volatility, including a net loss in 2024. Overall, financial health is adequate but with some challenges.

Income Statement

50Neutral

Balance Sheet

55Neutral

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.51B	6.44B	5.13B	2.61B	2.29B	1.45B
Gross Profit	2.28B	2.03B	1.76B	1.42B	1.40B	745.80M
EBITDA	841.91M	661.94M	257.58M	534.92M	396.89M	163.06M
Net Income	236.78M	254.90M	-29.78M	441.37M	265.12M	161.83M
Balance Sheet
Total Assets	5.72B	5.37B	4.63B	1.73B	1.30B	663.62M
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.49B	1.12B	913.71M	659.51M	423.50M
Total Debt	2.93B	2.62B	2.57B	332.49M	183.77M	188.52M
Total Liabilities	4.11B	3.80B	3.33B	618.32M	640.75M	416.20M
Stockholders Equity	1.61B	1.57B	1.29B	1.12B	655.37M	247.42M
Cash Flow
Free Cash Flow	0	558.09M	318.71M	146.70M	364.78M	199.36M
Operating Cash Flow	0	631.99M	345.90M	177.54M	377.49M	202.14M
Investing Cash Flow	0	-324.30M	-2.15B	-90.61M	-260.33M	-20.79M
Financing Cash Flow	0	67.82M	2.00B	167.28M	118.85M	53.33M

Mental Health Technologies Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price760.00

Price Trends

50DMA790.62Negative

100DMA758.22Positive

200DMA753.67Positive

Market Momentum

MACD-8.42Positive

RSI31.63Neutral

STOCH11.53Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9218, the sentiment is Negative. The current price of 760.00 is below the 20-day moving average (MA) of 795.20, below the 50-day MA of 790.62, and above the 200-day MA of 753.67, indicating a neutral trend. The MACD of -8.42 indicates Positive momentum. The RSI at 31.63 is Neutral, neither overbought nor oversold. The STOCH value of 11.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9218.

Mental Health Technologies Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9218 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2413	79Outperform	JPY 1.25T	26.80	11.45%	1.20%	15.76%	13.53%
JP:4480	63Neutral	JPY 75.89B	39.69	12.35%	―	24.03%	34.50%
JP:9218	57Neutral	JPY 8.05B	33.86	―	1.31%	27.65%	-28.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4438	50Neutral	JPY 2.36B	-4.42	―	―	14.84%	30.67%
JP:4263	39Underperform	JPY 5.63B	-14.62	―	―	7.39%	-27.77%

* General Sector Average

Performance Comparison

JP:9218 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9218	Mental Health Technologies Co. Ltd.	760.00	-75.34	-9.02%
JP:2413	M3	1820.00	-322.59	-15.06%
JP:4480	Medley, Inc.	2323.00	191.00	8.96%
JP:4263	SUSMED,Inc.	322.00	-615.00	-65.64%
JP:4438	Welby Inc.	282.00	-7.00	-2.42%
JP:366A	Wellness Communications Corporation	1144.00	-236.52	-17.13%

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 06, 2026

Mental Health Technologies Co. Ltd. AI Stock Analysis