MTI Ltd. (9438) AI Stock Analysis

• Market Cap: ¥41.70B
• Dividend Yield: 2.32%
• Average Volume (3M): 62.04K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.52
• Revenue Growth: 8.24%
• EPS Growth: -13.23%
• Country: JP
• Employees: 1,184
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 5.47
• Shares Outstanding: 60,304,600
• 10 Day Avg. Volume: 33,460
• 30 Day Avg. Volume: 62,043
• PEG Ratio: 0.13
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 23.16
• 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: ¥900.00
• Price Target Upside: 16.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥900.00 ▲(16.13% Upside)

MTI Ltd. shows solid financial performance with strong revenue growth and profitability, which is the most significant factor in its overall score. However, technical indicators suggest potential bearish momentum, and the valuation indicates the stock might be slightly overvalued. The absence of earnings call and corporate events data means these factors do not influence the score.

MTI Ltd. Business Overview & Revenue Model

Company Description

MTI Ltd. engages in the content distribution for mobile phones in Japan. It operates Boshimo, an application, which enables digital management of childcare records and other information; Luna-Luna, a women's healthcare-related information website; Atleta, a condition management system that connects athletes and coaches; and CARADA, a physical data management application, which connects consumers with companies, pharmacies, health examination institutions, and health insurance associations. The company also offers &Pay, a smartphone payment and transfer service; MOBILE CONVERT, a service that optimizes PC Websites for smartphones; and AMY, an artificial intelligence solution, which reduces operational loads of companies. In addition, it provides music.jp, an online store that offers music, movies, TV drama series, animations, books, and comics; Life Ranger, a lifestyle-related information site that provides weather information, maps, train connection information, and navigation functions as a single service; and a site for entertainment services. The company was incorporated in 1996 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MTI Ltd. generates revenue primarily through subscription-based services and digital content sales. The company offers a diverse range of digital content, including music streaming, healthcare information, and lifestyle applications, which customers can access through monthly subscriptions. These subscriptions form a significant portion of MTI's revenue streams. Additionally, the company may engage in strategic partnerships with other technology firms and content providers to broaden its service offerings and reach more consumers. MTI Ltd. also capitalizes on advertising revenues through its platforms, leveraging its large user base to attract advertisers. These diverse revenue streams enable MTI Ltd. to maintain a strong financial position in the competitive digital content market.

MTI Ltd. Financial Statement Overview

Summary

MTI Ltd. exhibits solid financial health with strong revenue growth and profitability metrics. The balance sheet is robust with low leverage, but the cash flow variability and recent operational cash flow challenges require monitoring. Overall, the company maintains a stable financial position with opportunities for operational improvements.

Income Statement

MTI Ltd. has demonstrated robust revenue growth of 6.5% over the past year, with improving profitability evidenced by a current TTM gross profit margin of 74.1% and a net profit margin of 8.2%. The EBIT and EBITDA margins have also strengthened, indicating efficient operations. However, the EBIT margin at 9.5% suggests there is room for further operational improvements.

Balance Sheet

The company's balance sheet shows strong equity with an equity ratio of 54.1% and a low debt-to-equity ratio of 0.14, indicating financial stability. The return on equity is healthy at 14.4%, reflecting effective use of equity in generating profits. However, the overall decrease in stockholders' equity warrants attention.

Cash Flow

MTI Ltd.'s cash flow statement reveals challenges in maintaining consistent free cash flow, with a noticeable decrease in free cash flow growth. The absence of operating cash flow in the TTM period is concerning. Nonetheless, a strong free cash flow to net income ratio in previous years illustrates potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.44B	27.67B	26.80B	26.48B	25.74B	26.08B
Gross Profit	21.93B	20.40B	18.37B	18.69B	18.74B	18.95B
EBITDA	5.17B	5.17B	2.91B	1.44B	2.45B	3.22B
Net Income	2.18B	2.36B	753.22M	-930.48M	-1.16B	506.94M
Balance Sheet
Total Assets	32.07B	29.69B	29.16B	29.27B	31.91B	30.55B
Cash, Cash Equivalents and Short-Term Investments	16.87B	14.83B	13.72B	12.10B	15.54B	13.35B
Total Debt	1.88B	2.43B	3.18B	3.93B	2.88B	3.33B
Total Liabilities	11.27B	10.54B	11.57B	11.39B	10.67B	9.04B
Stockholders Equity	16.84B	15.47B	14.01B	14.18B	17.59B	19.51B
Cash Flow
Free Cash Flow	0.00	2.74B	3.60B	-3.59B	1.74B	1.61B
Operating Cash Flow	0.00	4.13B	4.76B	-1.39B	3.52B	3.29B
Investing Cash Flow	0.00	-1.37B	-1.35B	-2.46B	-2.00B	-4.81B
Financing Cash Flow	0.00	-1.64B	-1.78B	343.54M	649.18M	2.45B

MTI Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 775.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9438, the sentiment is Negative. The current price of 775 is below the 20-day moving average (MA) of 780.13, below the 50-day MA of 818.14, and below the 200-day MA of 872.12, indicating a bearish trend. The MACD of -13.33 indicates Negative momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 52.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9438.

MTI Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3649	79 Outperform	¥20.67B	18.03	―	2.00%	-6.29%	-22.25%
4320	73 Outperform	¥15.01B	14.26	―	2.48%	7.79%	38592.95%
4483	66 Neutral	¥307.20B	49.52	―	0.34%	29.09%	87.01%
3939	65 Neutral	¥22.00B	21.63	―	1.62%	13.39%	12.00%
9438	64 Neutral	¥41.70B	19.59	―	2.32%	8.24%	-13.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	43 Neutral	¥17.67B	4,465.71	―	1.19%	-0.58%	-260.22%

MTI Ltd. Corporate Events

MTI Ltd. Reports Strong Operating Income Growth Amid Profit Decline

MTI Ltd. reported a significant increase in operating income for the first three quarters of the fiscal year ending September 30, 2025, with a 33.8% rise compared to the previous year. Despite this, the profit attributable to owners of the parent decreased by 8.1%. The company also announced a revision to its earnings forecasts, indicating a positive outlook for the full fiscal year. These results suggest a strong operational performance, although challenges remain in maintaining profitability. The company’s strategic decisions and market conditions will be crucial in shaping its future performance.

MTI Ltd. Revises Earnings Forecast Upward for FY 2025

MTI Ltd. has revised its consolidated earnings forecast for the fiscal year ending September 30, 2025. The company announced an upward revision in its profit attributable to owners of parent due to an extraordinary income from a consumption tax refund. This adjustment reflects a significant increase in expected profits, highlighting MTI Ltd.’s improved financial performance and potential positive impact on its stakeholders.

MTI Ltd. Announces Extraordinary Income from Tax Refund

MTI Ltd. has announced the posting of extraordinary income due to a consumption tax refund of ¥823 million related to lapsed points in its monthly content services. This adjustment, along with deferred income taxes of ¥252 million, was not included in the company’s previous earnings forecast for the fiscal year ending September 30, 2025. The company is currently assessing the impact of these adjustments and will disclose any necessary revisions to its earnings forecast promptly.