Why is Mental Health Technologies Co., Ltd. ?
1
High Management Efficiency with a high ROE of 18.92%
2
Healthy long term growth as Net Sales has grown by an annual rate of 54.17% and Operating profit at 18.19%
3
The company has declared Positive results for the last 3 consecutive quarters
- NET PROFIT(HY) Higher at JPY 155.54 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 1,208.18%
- NET SALES(Q) Highest at JPY 1,571.29 MM
4
With ROE of 23.15%, it has a attractive valuation with a 5.04 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 18.60%, its profits have risen by 792% ; the PEG ratio of the company is 0
How much should you hold?
- Overall Portfolio exposure to Mental Health Technologies Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Mental Health Technologies Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Mental Health Technologies Co., Ltd.
18.6%
-0.07
37.98%
Japan Nikkei 225
27.57%
1.07
25.74%
Quality key factors
Factor
Value
Sales Growth (5y)
54.17%
EBIT Growth (5y)
18.19%
EBIT to Interest (avg)
50.52
Debt to EBITDA (avg)
4.09
Net Debt to Equity (avg)
1.05
Sales to Capital Employed (avg)
1.49
Tax Ratio
25.64%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
35.72%
ROE (avg)
18.92%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
5.04
EV to EBIT
17.59
EV to EBITDA
13.06
EV to Capital Employed
2.97
EV to Sales
1.46
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
16.90%
ROE (Latest)
23.15%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
21What is working for the Company
NET PROFIT(HY)
Higher at JPY 155.54 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 1,208.18%
NET SALES(Q)
Highest at JPY 1,571.29 MM
OPERATING PROFIT(Q)
Highest at JPY 204.24 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13 %
PRE-TAX PROFIT(Q)
Highest at JPY 135.98 MM
-9What is not working for the Company
INTEREST(HY)
At JPY 20.48 MM has Grown at 53.77%
RAW MATERIAL COST(Y)
Grown by 10.47% (YoY
Here's what is working for Mental Health Technologies Co., Ltd.
Net Profit
At JPY 155.54 MM has Grown at 176.58%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Profit
Higher at JPY 155.54 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Net Sales
Highest at JPY 1,571.29 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 204.24 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 13 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 135.98 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Highest at 1,208.18%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 54.94 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 54.94 MM has Grown at 61.56%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for Mental Health Technologies Co., Ltd.
Interest
At JPY 20.48 MM has Grown at 53.77%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 10.47% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






