Medical Net Inc

Medical Net Inc has a liquidity position that appears robust, with cash and equivalents amounting to ¥1,528,258,000, which is a significant portion of its total assets of ¥3,989,574,000. The company's liquidity FPT (free cash flow to total debt) is not explicitly provided, but the current ratio of 1.75 suggests a strong ability to meet short-term obligations. The price-to-book ratio of 1.42 indicates that the market values the company slightly above its book value, which is in line with the industry norm for healthcare services.

The company's profitability is a concern, as it reported a net loss of ¥40,454,000 and an operating loss of ¥13,029,000. The return on equity (ROE) of -2.12% and return on assets (ROA) of -1.01% are both negative, indicating that the company is not generating returns for its shareholders or effectively utilizing its assets. These metrics are below the industry median for healthcare services, which typically have positive ROE and ROA figures.

Medical Net Inc's revenue is concentrated in a single business segment, as no specific segments are disclosed in the provided data. The company's geographic exposure is primarily within Japan, as the financial data is reported in Japanese Yen and there is no indication of significant international operations. This concentration could pose a risk if the domestic market experiences economic downturns or regulatory changes.

The company's growth trajectory is uncertain, as the provided data does not include future outlook figures. However, the operating cash flow of ¥119,589,000 and capital expenditure of -¥32,800,000 suggest that the company is generating positive cash flow from operations but is not investing heavily in new projects. The absence of a clear growth strategy or significant capital investment may limit the company's ability to expand or improve its profitability.

The risk assessment for Medical Net Inc indicates low liquidity and dilution risks. The company has a debt-to-equity ratio of 0.54, which is relatively low, and there are no immediate filing-based liquidity or dilution flags. However, the company's negative net income and operating income could be a red flag for potential future liquidity issues if the financial performance does not improve. The dilution potential is also low, as the number of shares outstanding for both basic and diluted shares is the same, indicating no imminent threat of share dilution.

Recent events and filings for Medical Net Inc do not show any significant developments that would impact the company's financial position or strategic direction. The company's last actual EPS was -7.64 JPY, and the last actual revenue was ¥6,077,800,000, which is lower than the reported revenue of ¥1,596,378,000. This discrepancy may be due to the different reporting periods or the inclusion of non-recurring items in the revenue figures.

Revenue grew 20.3% annually over four years, demonstrating strong top-line expansion despite recent profitability challenges.

Gross profit increased to 1.97 billion JPY in FY2025, indicating sustained underlying operational efficiency and margin potential.

The debt-to-equity ratio of 0.54 remains below the healthcare cohort median of 0.32, suggesting manageable leverage levels.

Dilution and liquidity risks are assessed as low, providing a stable capital structure foundation for future growth.

Capex intensity is above the 75th percentile of peers, signaling significant investment in future capacity and infrastructure.

Operating and net margins are significantly below cohort medians, indicating poor competitive positioning within the healthcare sector.

Credit risk is flagged as high, reflecting substantial financial distress and potential difficulties in meeting debt obligations.

Revenue ¥1.62B, +7,3% YoY; Operating income +122,7% YoY.

• ▍Revenue ¥1.62B, +7,3% YoY
• ▍Operating income +122,7% YoY
• ▍Net income +127,0% YoY
• ▍Net margin 2.1%

Revenue ¥1.77B, +13,9% YoY; Operating income +48,0% YoY.

• ▍Revenue ¥1.77B, +13,9% YoY
• ▍Operating income +48,0% YoY
• ▍Net income +273,6% YoY
• ▍Net margin 3.9%

Revenue ¥1.56B, +14,9% YoY; Operating income +384,6% YoY.

• ▍Revenue ¥1.56B, +14,9% YoY
• ▍Operating income +384,6% YoY
• ▍Net income +160,9% YoY
• ▍Net margin 1.4%

Revenue ¥1.66B, +3,7% YoY; Operating income −2 072,1% YoY.

• ▍Revenue ¥1.66B, +3,7% YoY
• ▍Operating income −2 072,1% YoY
• ▍Net income +290,7% YoY
• ▍Net margin 4.7%

Revenue ¥1.51B; Operating income -¥119.7M.

• ▍Revenue ¥1.51B
• ▍Operating income -¥119.7M
• ▍Net margin -8.5%

Revenue ¥1.55B; Operating income ¥47.1M.

• ▍Revenue ¥1.55B
• ▍Operating income ¥47.1M
• ▍Net margin 1.2%

Revenue ¥1.36B; Operating income -¥8.0M.

• ▍Revenue ¥1.36B
• ▍Operating income -¥8.0M
• ▍Net margin -2.6%

Revenue ¥1.60B; Operating income -¥13.0M.

• ▍Revenue ¥1.60B
• ▍Operating income -¥13.0M
• ▍Net margin -2.5%

Revenue ¥6.08B, +15,7% YoY; Operating income −395,1% YoY.

• ▍Revenue ¥6.08B, +15,7% YoY
• ▍Operating income −395,1% YoY
• ▍Net income −1 243,4% YoY
• ▍Free cash flow −579,6% YoY
• ▍Net margin -1.1%

Revenue ¥5.25B, +16,7% YoY; Operating income −37,1% YoY.

• ▍Revenue ¥5.25B, +16,7% YoY
• ▍Operating income −37,1% YoY
• ▍Net income −94,9% YoY
• ▍Free cash flow −78,4% YoY
• ▍Net margin 0.1%

Revenue ¥4.50B, +20,2% YoY; Operating income −63,0% YoY.

• ▍Revenue ¥4.50B, +20,2% YoY
• ▍Operating income −63,0% YoY
• ▍Net income −69,4% YoY
• ▍Free cash flow −70,5% YoY
• ▍Net margin 2.6%

Revenue ¥3.75B, +29,0% YoY; Operating income +109,5% YoY.

• ▍Revenue ¥3.75B, +29,0% YoY
• ▍Operating income +109,5% YoY
• ▍Net income +193,1% YoY
• ▍Free cash flow +171,9% YoY
• ▍Net margin 10.1%