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

• Market Cap: ¥77.70B
• Dividend Yield: 3.56%
• Average Volume (3M): 49.95K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.88
• Revenue Growth: -3.62%
• EPS Growth: 9.37%
• Country: JP
• Employees: 691
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 23.07
• 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: ¥1,903.00 ▲(14.09% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.

Balance Sheet Health

A low debt-to-equity ratio minimizes financial risk, providing flexibility for future investments and resilience against economic downturns.

Profit Margins

Improving profit margins reflect operational efficiency and pricing power, contributing to sustainable profitability and competitive advantage.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow may indicate potential challenges in cash management, affecting liquidity and the ability to fund future growth initiatives.

Cash Flow Vigilance

The need for careful cash flow monitoring suggests potential volatility in cash reserves, which could impact operational flexibility and investment capacity.

Free Cash Flow Monitoring

Monitoring cash flow is crucial to ensure sufficient liquidity for operations and strategic investments, highlighting a potential area of financial concern.

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

Company Description

Meisei Industrial Co., Ltd., established in 1976, is a leading manufacturer specializing in precision engineering and advanced materials. The company operates across multiple sectors, including automotive, electronics, and aerospace, providing a diverse range of high-quality products such as precision components, assemblies, and innovative material solutions. With a strong emphasis on research and development, Meisei Industrial is committed to delivering cutting-edge technology and sustainable solutions to meet the evolving needs of its global clientele.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1668.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1668 is above the 20-day moving average (MA) of 1656.35, above the 50-day MA of 1637.46, and above the 200-day MA of 1491.24, indicating a bullish trend. The MACD of 10.58 indicates Negative momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 30.29 is Neutral, 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
1976	80 Outperform	¥77.70B	10.65	―	3.56%	-3.62%	9.37%
1965	78 Outperform	¥126.30B	12.99	―	1.63%	20.44%	106.45%
1982	77 Outperform	¥102.77B	16.19	―	2.20%	4.81%	-1.16%
1820	75 Outperform	¥223.92B	12.45	―	3.84%	-3.72%	59.02%
1945	73 Outperform	¥57.63B	16.03	―	3.01%	-7.98%	37.92%
1815	69 Neutral	¥61.95B	13.88	―	2.87%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Meisei Industrial Co., Ltd. Corporate Events

Meisei Industrial Completes Strategic Share Repurchase

Meisei Industrial Co., Ltd. has completed the repurchase of 1,700,000 of its own common shares, representing 3.56% of the outstanding shares, at a cost of 2,743,800,000 yen. This strategic move, executed through the Tokyo Stock Exchange’s off-auction trading system, is part of the company’s efforts to optimize its capital structure and potentially enhance shareholder value.

Meisei Industrial Reports Decline in Semi-Annual Financial Results

Meisei Industrial Co., Ltd. reported a decline in its consolidated financial results for the first six months of the fiscal year ending March 31, 2026, with significant decreases in net sales, operating profit, and profit attributable to owners of the parent compared to the previous year. The company has also revised its earnings forecasts for the fiscal year, indicating a challenging financial outlook and potential implications for stakeholders.

Meisei Industrial Revises Earnings Forecasts Amid Rising Costs

Meisei Industrial Co., Ltd. has revised its earnings forecasts for the fiscal year ending March 31, 2026, due to increased costs, including personnel expenses, which have impacted profitability. The company now expects lower net sales and profits compared to its previous forecast, reflecting challenges in maintaining profitability amid rising operational costs.

Meisei Industrial Reports Decline in First Half Financial Results

Meisei Industrial Co., Ltd. reported a decline in its financial performance for the first six months of the fiscal year ending March 31, 2026, with net sales and profits showing significant decreases compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio, indicating financial stability, and has not revised its cash dividend forecasts, suggesting a commitment to shareholder returns.

Meisei Industrial Revises Earnings Forecasts Amid Rising Costs

Meisei Industrial Co., Ltd. has revised its earnings forecasts for the first six months of the fiscal year ending March 31, 2026. While net sales remain unchanged, the company anticipates a decrease in profits due to additional project costs and rising personnel expenses. This revision reflects challenges in maintaining profitability amidst increasing operational costs, impacting stakeholder expectations.