Medical Net (TSE:3645) - Share price, News & Analysis

3645 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

3645 Stock Overview

Medical Net, Inc. provides medical and life related information services through Internet.

Rewards

Trading at 33% below our estimate of its fair value

Earnings grew by 182.8% over the past year

Risk Analysis

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (¥4B)

Medical Net Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Medical Net
Historical stock prices
Current Share Price	JP¥428.00
52 Week High	JP¥730.00
52 Week Low	JP¥355.00
Beta	1.35
1 Month Change	-12.47%
3 Month Change	7.81%
1 Year Change	-36.17%
3 Year Change	58.81%
5 Year Change	54.23%
Change since IPO	-53.71%

Shareholder Returns

	3645	JP Interactive Media and Services	JP Market
7D	0.9%	-2.7%	-0.02%
1Y	-36.2%	-14.5%	-3.6%

Return vs Industry: 3645 underperformed the JP Interactive Media and Services industry which returned -14.5% over the past year.

Return vs Market: 3645 underperformed the JP Market which returned -3.6% over the past year.

Price Volatility

Is 3645's price volatile compared to industry and market?
3645 volatility
3645 Average Weekly Movement	6.9%
Interactive Media and Services Industry Average Movement	8.1%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 3645 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 3645's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
2000	113	Dai Hirakawa	https://www.medical-net.com

Medical Net, Inc. provides medical and life related information services through Internet. It operates dental implant treatment, orthodontic and aesthetic dental treatment, and dental comprehensive information; and offers dental clinic management support services, as well as dental related enterprise marketing support services. The company also operates medical care, beauty, lifestyle, child support, and mother's support related information sites, such as health care information, pet examination, body net, men’s esthetic net, LASIK net, petit plastic surgery popularity ranking information, beauty salon ranking information, cosmetic surgery, beauty information, beauty salon search, men’s cosmetic surgery, hair loss and anti-aging popularity ranking, detox and supplement popularity ranking, and beauty school overall ranking sites.

Medical Net Fundamentals Summary

How do Medical Net's earnings and revenue compare to its market cap?
3645 fundamental statistics
Market Cap	JP¥3.77b
Earnings (TTM)	JP¥328.00m
Revenue (TTM)	JP¥3.45b

11.5x

P/E Ratio

1.1x

P/S Ratio

Is 3645 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3645 income statement (TTM)
Revenue	JP¥3.45b
Cost of Revenue	JP¥2.11b
Gross Profit	JP¥1.35b
Other Expenses	JP¥1.02b
Earnings	JP¥328.00m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	37.21
Gross Margin	38.95%
Net Profit Margin	9.50%
Debt/Equity Ratio	24.6%

How did 3645 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

7%

Payout Ratio

Does 3645 pay a reliable dividends?

See 3645 dividend history and benchmarks

When do you need to buy 3645 by to receive an upcoming dividend?
Medical Net dividend dates
Ex Dividend Date	May 30 2022
Dividend Pay Date	Aug 31 2022
Days until Ex dividend	12 days
Days until Dividend pay date	105 days

Does 3645 pay a reliable dividends?

See 3645 dividend history and benchmarks

Valuation

Is Medical Net undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

33.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 3645 (¥428) is trading below our estimate of fair value (¥638.67)

Significantly Below Fair Value: 3645 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 3645 is good value based on its PE Ratio (11.5x) compared to the JP Interactive Media and Services industry average (23.5x).

PE vs Market: 3645 is good value based on its PE Ratio (11.5x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3645's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 3645 is good value based on its PB Ratio (2.3x) compared to the JP Interactive Media and Services industry average (2.5x).

Future Growth

How is Medical Net forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.2%

Forecasted Media industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Medical Net has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Medical Net performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

24.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3645 has high quality earnings.

Growing Profit Margin: 3645's current net profit margins (9.5%) are higher than last year (3.6%).

Past Earnings Growth Analysis

Earnings Trend: 3645's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: 3645's earnings growth over the past year (182.8%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: 3645 earnings growth over the past year (182.8%) exceeded the Interactive Media and Services industry 32.7%.

Return on Equity

High ROE: 3645's Return on Equity (20.1%) is considered high.

Financial Health

How is Medical Net's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3645's short term assets (¥1.9B) exceed its short term liabilities (¥857.0M).

Long Term Liabilities: 3645's short term assets (¥1.9B) exceed its long term liabilities (¥127.0M).

Debt to Equity History and Analysis

Debt Level: 3645 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 3645's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3645's debt is well covered by operating cash flow (69.8%).

Interest Coverage: 3645's interest payments on its debt are well covered by EBIT (425x coverage).

Balance Sheet

Dividend

What is Medical Net current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.58%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 3645's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 3645's dividend (0.58%) is low compared to the top 25% of dividend payers in the JP market (3.65%).

Stability and Growth of Payments

Stable Dividend: 3645 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 3645 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 3645 is not paying a notable dividend for the JP market.

Cash Payout to Shareholders

Cash Flow Coverage: 3645 is not paying a notable dividend for the JP market.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

11.8yrs

Average board tenure

CEO

Dai Hirakawa (48 yo)

5.75yrs

Tenure

Mr. Dai Hirakawa has been Chief Executive Officer Medical Net, Inc. (formerly known as Medical Net Communications, Inc.) since June 2016. Mr. Hirakawa served as the President of Medical Net, Inc. (formerly...

Board Members

Experienced Board: 3645's board of directors are seasoned and experienced ( 11.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/02/28
Annual Earnings	2021/05/31