| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2358.10 | -1 |
| Intrinsic value (DCF) | 24352.91 | 920 |
| Graham-Dodd Method | 810.54 | -66 |
| Graham Formula | 4227.78 | 77 |
Medley, Inc. (4480.T) is a Tokyo-based company specializing in digital platforms for Japan's healthcare and recruitment sectors. Operating through three segments—HR Platform Business, Medical Platform Business, and New Services—Medley provides innovative solutions like JobMedley for medical staffing, CLINICS Telemedicine for remote consultations, and Pharms for pharmacy support. The company also offers MEDLEY, a patient-facing medical information portal, and Kaigo-no Honne, a nursing care facility search platform. Founded in 2009, Medley capitalizes on Japan's aging population and digital transformation in healthcare, positioning itself as a key player in healthcare IT and HR tech. With a market cap of ¥96 billion, Medley combines healthcare expertise with tech-driven efficiency, addressing critical gaps in Japan's labor-strained medical sector.
Medley presents a compelling growth opportunity in Japan's healthcare IT niche, benefiting from structural tailwinds like labor shortages and telemedicine adoption. The company's diversified platform model—spanning recruitment, telemedicine, and pharmacy support—generates stable revenues (¥29.3 billion in FY2024) with solid profitability (net income of ¥2.8 billion). A debt-to-equity ratio of ~0.16 suggests moderate leverage, supported by ¥19 billion in cash. However, zero dividends may deter income investors, and reliance on Japan's regulated healthcare market poses policy risks. The stock's beta of 0.7 indicates lower volatility than the broader market, appealing to risk-averse investors. Key upside catalysts include expansion of telemedicine services and cross-selling opportunities across platforms.
Medley's competitive edge lies in its vertical specialization within Japan's healthcare ecosystem—a market often overlooked by generalist HR tech firms. Unlike global players, its JobMedley platform focuses exclusively on medical staffing, capturing niche demand with deep industry-specific algorithms. The CLINICS telemedicine system benefits from first-mover advantage in Japan's nascent telehealth market, while integration with MEDLEY's patient database creates network effects. However, the company faces pressure from two fronts: 1) Horizontal HR platforms like Recruit Holdings (6098.T) that dominate general recruitment, and 2) Emerging telehealth apps like MICIN (unlisted) that target younger demographics. Medley mitigates this through regulatory moats—its systems are designed around Japan's strict healthcare compliance requirements, creating high switching costs for institutions. Capital efficiency is strong (operating cash flow covers CapEx 37x), allowing reinvestment in AI-driven matching technologies. The main vulnerability is geographic concentration—100% of revenue comes from Japan, exposing it to demographic declines unless overseas expansion accelerates.