2413:TSEM3, Inc. Analysis
Data as of 2026-06-17 - not real-time
¥1,605.00
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
M3, Inc. trades around ¥1,605, which is roughly 21% below the DCF‑derived fair value of ¥2,042 and offers an estimated upside of 35%.
The stock’s forward P/E of 22.4 sits beneath the industry average of 24.7, while a solid 9.6% revenue growth and a 14% profit margin underscore a healthy earnings trajectory. Strong cash reserves of ¥156 bn against ¥33 bn of debt and a modest payout ratio of 30% suggest the 1.39% dividend is sustainable. Technicals are mixed: a bullish MACD, RSI at 61, and price comfortably above the support level of ¥1,365 signal momentum, yet decreasing volume and a neutral trend flag short‑term caution. Volatility is elevated at 38% over 30 days, but a low beta (~0.2) points to limited market‑wide risk. Overall, the company blends growth characteristics with attractive valuation and dividend stability, making it a compelling candidate for medium‑ to long‑term investors.
The stock’s forward P/E of 22.4 sits beneath the industry average of 24.7, while a solid 9.6% revenue growth and a 14% profit margin underscore a healthy earnings trajectory. Strong cash reserves of ¥156 bn against ¥33 bn of debt and a modest payout ratio of 30% suggest the 1.39% dividend is sustainable. Technicals are mixed: a bullish MACD, RSI at 61, and price comfortably above the support level of ¥1,365 signal momentum, yet decreasing volume and a neutral trend flag short‑term caution. Volatility is elevated at 38% over 30 days, but a low beta (~0.2) points to limited market‑wide risk. Overall, the company blends growth characteristics with attractive valuation and dividend stability, making it a compelling candidate for medium‑ to long‑term investors.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 7/10
Key Factors
- Price near support but within a neutral trend
- Bullish MACD and RSI indicating residual momentum
- Decreasing volume and high short‑term volatility
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervalued price relative to DCF and industry P/E
- Strong cash position and sustainable dividend
- Continued revenue growth and solid operating margins
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Long‑term upside potential of >30% based on fair‑value estimate
- Stable healthcare information services sector with low cyclicality
- Robust balance sheet and consistent earnings generation
Key Metrics & Analysis
Financial Health
Revenue Growth9.60%
Profit Margin13.97%
P/E Ratio22.1
ROE12.58%
ROA7.29%
Debt/Equity7.42
P/B Ratio2.6
Op. Cash Flow¥70.3B
Free Cash Flow¥62.6B
Industry P/E24.7
Technical Analysis
TrendNeutral
RSI61.4
Support¥1,365.50
Resistance¥1,666.50
MA 20¥1,523.05
MA 50¥1,509.98
MA 200¥1,934.80
MACDBullish
VolumeDecreasing
Fear & Greed Index92.48
Valuation
Fair Value¥2,042.51
Target Price¥2,178.33
Upside/Downside35.72%
GradeUndervalued
TypeBlend
Dividend Yield1.39%
Risk Assessment
Beta0.19
Volatility38.59%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.