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

1 Followers

Mental Health Technologies Co. Ltd.

(TSE/TYO:9218)

Select Model

Rating:59Neutral

Price Target:JPY 767.00▲(2.54% Upside)

Action:reiterated

Date:11/07/26

The overall stock score is anchored by strong cash flow and revenue growth, which validate the company's scaling efforts. However, the score is significantly constrained by margin compression, elevated financial leverage, a premium valuation, and bearish technical momentum as the stock trades below major moving averages.

Positive Factors

Revenue recoveryThe renewed revenue growth indicates improving demand and business traction after a slower prior period. If maintained, stronger top-line momentum can support operating leverage, fund investment in the platform, and reinforce the company’s position in digital mental-health services over coming quarters.

Negative Factors

Elevated leverageThe sharp increase in debt reliance has reduced financial flexibility and leaves the company more exposed if growth or margins weaken. Higher leverage can absorb cash that could otherwise fund digital-health expansion, while increasing the importance of sustained earnings and cash generation.

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

Market Cap: JPY 7.73B
Dividend Yield: 1.34%
Average Volume (3M): 27.42K
Price to Earnings (P/E): 33.1
Beta (1Y): 0.57
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

Financial performance is solid, driven by strong top-line expansion, a return to profitability, and exceptional cash flow generation, though it is partially offset by margin compression and increased leverage.

Income Statement

72Positive

Balance Sheet

60Neutral

Cash Flow

85Very Positive

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 Price748.00

Price Trends

50DMA787.98Negative

100DMA763.30Negative

200DMA751.49Negative

Market Momentum

MACD-11.95Positive

RSI38.91Neutral

STOCH67.44Neutral

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 748.00 is below the 20-day moving average (MA) of 773.85, below the 50-day MA of 787.98, and below the 200-day MA of 751.49, indicating a bearish trend. The MACD of -11.95 indicates Positive momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 67.44 is Neutral, 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	26.72	11.33%	1.19%	9.48%	2.08%
JP:4480	63Neutral	JPY 82.54B	43.38	12.35%	―	21.01%	10.15%
JP:9218	59Neutral	JPY 8.00B	33.07	―	1.34%	27.65%	-28.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4438	54Neutral	JPY 2.34B	-4.32	―	―	14.84%	30.67%
JP:4263	40Underperform	JPY 4.37B	-8.91	―	―	42.52%	-81.61%

* 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.	748.00	-70.54	-8.62%
JP:2413	M3	1832.00	-805.80	-30.55%
JP:4480	Medley, Inc.	2108.00	-447.00	-17.50%
JP:4263	SUSMED,Inc.	246.00	-664.00	-72.97%
JP:4438	Welby Inc.	270.00	-61.00	-18.43%
JP:366A	Wellness Communications Corporation	1100.00	-135.96	-11.00%

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: Nov 07, 2026

Mental Health Technologies Co. Ltd. AI Stock Analysis