Meisei Industrial Co., Ltd. (1976) AI Stock Analysis

• Market Cap: ¥94.57B
• Dividend Yield: 3.46%
• Average Volume (3M): 49.95K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.90
• Revenue Growth: -3.62%
• EPS Growth: 9.37%
• Country: JP
• Employees: 691
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 44.02
• Shares Outstanding: 55,117,218
• 10 Day Avg. Volume: 44,280
• 30 Day Avg. Volume: 49,950
• PEG Ratio: 0.19
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 12.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥2,314.00 ▲(36.44% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Meisei Industrial Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, supported by a healthy balance sheet. The technical indicators show a positive trend, although vigilance is advised due to potential overbought conditions. The stock's valuation is attractive, with a low P/E ratio and a solid dividend yield, making it a compelling investment opportunity in the Engineering & Construction industry.

Positive Factors

Very low leverage and strong equity base

Minimal leverage (debt-to-equity ~0.01) and a high equity ratio materially reduce insolvency and interest risk. This durable capital structure preserves financial flexibility for capex, cyclical downturns, or opportunistic investment, supporting long-term resilience and funding optionality.

Improving margins and strong profitability

Consistently improving gross and net margins indicate durable operational efficiency and likely pricing or cost advantages. Sustained higher margins bolster cash generation and reinvestment capacity, allowing the company to defend returns and fund growth without relying on higher revenue alone.

Healthy cash generation and conversion

Strong operating cash flow and solid FCF-to-net-income conversion underlie the company’s ability to fund dividends, maintenance capex, and strategic investments from operations. Reliable cash conversion enhances long-term financial sustainability and reduces dependence on external financing.

Negative Factors

Recent revenue decline

A negative year-on-year revenue growth rate signals potential demand softness, project timing shifts, or competitive pressure. If this trend persists, it could erode scale advantages, constrain margin expansion, and limit the company’s ability to invest for long-term growth without sacrificing returns.

Slight year-on-year free cash flow decline

A reduction in free cash flow, even if modest, can tighten funding available for dividends, capex, or debt repayment. Over time, continued FCF erosion would reduce strategic flexibility, force tougher capital allocation choices, and increase sensitivity to revenue or margin shocks.

Limited forward disclosure and visible catalysts

Absence of guidance and limited earnings-call detail reduces visibility into near-term backlog, margins, and strategic priorities. For an engineering firm, limited forward disclosure makes it harder to assess project pipelines and capital plans, increasing uncertainty around sustained performance.

Meisei Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

MEISEI INDUSTRIAL Co.,Ltd. operates as a construction works company in Japan and internationally. It operates in two segments, Construction Business and Boiler Business. The company offers hot and cold insulation systems, including the Keical-Ace Super-Silica, which is used in various fields as a primary hot insulation material; the Keical-Ace Win for rust prevention of heat-insulated objects; and the Recycal, a recycled calcium silicate insulation material. It also undertakes liquefied natural (LNG) gas and petroleum gas related insulation works comprising on-site liquefaction equipment, low-temperature liquefaction carriers, and domestic storage facilities; furnace and refractory insulation works for industrial furnaces, incinerators, and boiler ducts; and insulation works for nuclear power plants. In addition, the company provides fireproofing products, such as Pyrocrete 241, a cement-based fireproofing material; Thermolag 3000, an epoxy-type fireproofing material; Mandoseal; and Fendolite M II Marine Mandolite 25/40. Further, it is involved in the repair and reinforcement of concrete structures; construction of incinerator facilities; repair of stack inner linings and stack reconstruction; and provision of acoustic insulation products. Additionally, the company offers various materials used in insulation related work, such as processed polyurethane foams, insulation panels for LNG carriers, molded polyurethane foams, metal insulation products, light anti-corrosion coatings, and calcium silicate insulation materials. It also provides Grapple Zinc Primer, a heavy duty anticorrosion coating for steel structures; and ULVA Shield, a polymeric rubber sheet for the thermal insulation of piping, vessels, and equipment. The company was founded in 1944 and is headquartered in Osaka, Japan.

How the Company Makes Money

Meisei Industrial Co., Ltd. generates revenue primarily through the manufacture and sale of precision engineering products and materials to various industries. The company's revenue model is centered around direct sales to clients, long-term contracts with key customers in sectors like automotive and aerospace, and the provision of custom engineering solutions. Key revenue streams include the sale of precision components, assemblies, and advanced materials, which are often tailored to meet specific client requirements. Additionally, strategic partnerships with major corporations and participation in industry collaborations further enhance the company's market reach and profitability. Continuous investment in research and development allows Meisei Industrial to innovate and introduce new products, thereby maintaining a competitive edge and driving revenue growth.

Meisei Industrial Co., Ltd. Financial Statement Overview

Summary

Meisei Industrial Co., Ltd. exhibits a very strong financial standing with impressive growth in revenue and profitability. The company's operations are efficient, reflected in solid profit margins and a high ROE. The balance sheet is healthy with low leverage, ensuring long-term financial stability. While cash flow is generally positive, a slight decline in free cash flow warrants attention to maintain robust liquidity.

Income Statement

Meisei Industrial Co., Ltd. has demonstrated strong financial performance, with consistent revenue growth over the past years. The gross profit margin has improved, reaching approximately 23.7% in the latest year. The net profit margin also shows a positive trend, currently at 12.8%. EBIT and EBITDA margins have also strengthened, indicating robust operational efficiency. Revenue growth year-on-year is commendable, showcasing a healthy upward trajectory.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of approximately 0.01, suggesting minimal leverage and financial risk. Return on Equity (ROE) is strong at around 12.3%, reflecting efficient use of shareholder funds to generate profits. The equity ratio is high, indicating a strong equity base relative to total assets, which enhances financial stability and reduces insolvency risk.

Cash Flow

Operating cash flow is healthy, supporting net income effectively. The free cash flow to net income ratio is robust, indicating good cash conversion from earnings. However, there was a slight decrease in free cash flow compared to the previous year, which could suggest a need for careful monitoring of cash expenditure. Overall, cash flow management appears sound, but vigilance is advised to maintain liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	65.31B	66.28B	60.38B	55.89B	48.39B	50.53B
Gross Profit	15.46B	15.74B	12.83B	11.58B	9.93B	10.90B
EBITDA	11.71B	12.62B	9.17B	7.47B	6.40B	7.56B
Net Income	7.99B	8.46B	6.24B	4.68B	3.79B	4.60B
Balance Sheet
Total Assets	84.53B	88.58B	84.43B	77.51B	71.15B	68.92B
Cash, Cash Equivalents and Short-Term Investments	33.79B	33.66B	31.69B	29.32B	27.49B	22.88B
Total Debt	800.00M	800.00M	800.00M	800.00M	960.00M	1.02B
Total Liabilities	16.61B	19.37B	20.57B	18.06B	15.23B	14.56B
Stockholders Equity	67.32B	68.57B	63.39B	59.05B	55.56B	54.00B
Cash Flow
Free Cash Flow	-159.50M	4.94B	5.22B	3.13B	6.92B	4.38B
Operating Cash Flow	775.50M	6.94B	7.13B	4.07B	7.17B	5.17B
Investing Cash Flow	-670.00M	-500.00M	-1.89B	-827.00M	-9.00M	-532.00M
Financing Cash Flow	-983.00M	-4.69B	-3.09B	-1.74B	-2.66B	-1.47B

Meisei Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1696.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1976, the sentiment is Positive. The current price of 1696 is below the 20-day moving average (MA) of 1880.25, below the 50-day MA of 1796.68, and above the 200-day MA of 1623.88, indicating a bullish trend. The MACD of 64.34 indicates Negative momentum. The RSI at 70.76 is Negative, neither overbought nor oversold. The STOCH value of 86.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1976.

Meisei Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1952	80 Outperform	¥203.49B	14.82	―	2.81%	8.83%	49.49%
1976	80 Outperform	¥94.57B	12.12	―	3.46%	-3.62%	9.37%
9768	77 Outperform	¥31.56B	13.72	―	2.37%	3.01%	-13.60%
7057	73 Outperform	¥3.62B	25.97	―	2.71%	5.85%	―
9233	73 Outperform	¥23.97B	12.05	―	3.59%	3.28%	-5.52%
4642	70 Outperform	¥8.30B	16.96	―	2.03%	16.10%	-10.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Meisei Industrial Co., Ltd. Corporate Events

Meisei Industrial Books ¥1.8 Billion Extraordinary Gain From Strategic Share Sale

Meisei Industrial Co., Ltd. has announced that it generated an extraordinary gain of 1,818 million yen from selling a portion of its strategic investment securities, specifically five listed stocks, between February 17 and February 25, 2026. The divestment aims to improve asset efficiency in line with Japan’s Corporate Governance Code, and the gain will be booked as extraordinary income in the fiscal year ending March 2026, with the company reviewing its full-year earnings forecast and signaling potential revisions that could affect investor expectations and financial projections.

The sale underscores Meisei Industrial’s ongoing shift away from cross-shareholdings toward a more disciplined capital allocation policy that aligns with broader market pressure on Japanese companies to unlock shareholder value. By reducing strategic shareholdings and recognizing a sizable one-time profit, the company may strengthen its balance sheet and increase financial flexibility, though stakeholders will watch closely for any changes to the earnings outlook and how this capital reallocation supports long-term growth or shareholder returns.

The most recent analyst rating on (JP:1976) stock is a Buy with a Yen2275.00 price target. To see the full list of analyst forecasts on Meisei Industrial Co., Ltd. stock, see the JP:1976 Stock Forecast page.

Meisei Industrial Revamps Organization and Leadership to Boost Regional and Procurement Strength

Meisei Industrial Co., Ltd. announced a series of organizational and personnel changes effective April 1, 2026, including the establishment of a new Chugoku & Shikoku Regional Branch and a centralized Procurement Department. These moves signal a push to strengthen regional coverage, streamline sourcing, and enhance support for key facilities such as the Hamamatsu Factory.

The company also reassigned responsibilities among directors and executive officers, including expanded roles in sales, construction, management and engineering oversight, while appointing new regional branch managers and department heads and accepting the retirement of one executive officer. The reshuffle is designed to refine governance, clarify accountability across branches and headquarters functions, and better align the organization with its operational demands and growth initiatives.

The most recent analyst rating on (JP:1976) stock is a Buy with a Yen2275.00 price target. To see the full list of analyst forecasts on Meisei Industrial Co., Ltd. stock, see the JP:1976 Stock Forecast page.

Meisei Industrial Posts Weaker Nine-Month Earnings but Keeps Dividend Outlook Intact

Meisei Industrial reported a decline in performance for the first nine months of the fiscal year ending March 31, 2026, with net sales down 6.7% year-on-year to ¥44.1 billion and profit attributable to owners of parent falling 11.1% to ¥3.97 billion, though its equity-to-asset ratio improved to 80.5% as net assets held broadly steady. The company maintained its full-year forecast, projecting an 11.0% drop in net sales and steeper declines in operating and ordinary profit of around 39% versus the prior year, while keeping its annual dividend outlook unchanged at ¥60 per share, signaling a commitment to shareholder returns despite weaker earnings and a higher level of treasury stock on its balance sheet.

The most recent analyst rating on (JP:1976) stock is a Buy with a Yen2043.00 price target. To see the full list of analyst forecasts on Meisei Industrial Co., Ltd. stock, see the JP:1976 Stock Forecast page.

Meisei Industrial Posts Lower Nine-Month Earnings but Maintains Dividend and Full-Year Outlook

Meisei Industrial reported a decline in performance for the first nine months of the fiscal year ending March 31, 2026, with net sales down 6.7% to ¥44.1 billion and profit attributable to owners of parent falling 11.1% to ¥4.0 billion, alongside lower operating and ordinary profits versus the previous year. Despite the earnings deterioration, the company’s financial position remains robust, with total assets of ¥84.6 billion, an equity-to-asset ratio of 80.5%, and higher net assets per share, while it reiterates its full-year forecast calling for double‑digit declines in sales and profits and maintains its annual dividend plan of ¥60 per share, signaling continued shareholder returns amid a more challenging earnings environment.

The most recent analyst rating on (JP:1976) stock is a Buy with a Yen2012.00 price target. To see the full list of analyst forecasts on Meisei Industrial Co., Ltd. stock, see the JP:1976 Stock Forecast page.