Investment perspectives for three Japanese healthtech companies: AI potentially a growth opportunity rather than risk for M3, Medley, and JMDC

Research evidence excerpt

Investment perspectives for three Japanese healthtech companies: AI potentially a growth opportunity rather than risk for M3, Medley, and JMDC

Nomura | Investment perspectives for three Japanese healthtech companies 15 June 2026

Share price performance of three leading

Japanese healthtech companies

Share prices weak while earnings recover and grow

Company-specific and external factors behind persistently weak share price

performance

M3, Medley, and JMDC are Japan's leading healthtech companies, and yet their share

prices have been weak for a long time (Figures 1-3). In particular, P/Es at M3 and JMDC

are at historically low levels. Looking at company-specific factors, M3 has recorded

declines in operating profits from 23/3, when the COVID bubble burst, through 25/3.

Medley saw operating profits decrease in 24/12 and 25/12, primarily due to the scrapping

of continuous service allowances and a decline in people looking for nursing and related

jobs. However, earnings are starting to recover at both companies. Operating profits at

JMDC have remained on an upward trajectory, but have tended to undershoot guidance,

which we think is an impediment to share price gains. In terms of external conditions, we

think share prices have been pushed down by a correction in valuations for tech-related

stocks since the COVID bubble and concerns since November 2025 that advances in AI

could hinder future growth. We calculate our target prices using a DCF model to reflect

the prospect of short-term business fluctuation risks from upfront investment and the

companies’ abilities to generate cash flow and deliver longer-term growth while creating

the healthtech market. We also think P/E is a useful point of reference for gauging recent

share price movements and market perception.

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