MAMEZO DIGITAL HOLDINGS CO.,LTD. (202A) AI Stock Analysis

• Market Cap: ¥56.74B
• Dividend Yield: 2.74%
• Average Volume (3M): 237.90K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.69
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 808
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 24.65
• Shares Outstanding: 16,050,000
• 10 Day Avg. Volume: 285,520
• 30 Day Avg. Volume: 237,900
• PEG Ratio: 0.62
• Price to Book (P/B): 6.19
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 16.60
• 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): 98.4
• Revenue Forecast (FY): ¥11.66B

• Rating: 74 Outperform
• Price Target: ¥3,970.00 ▲(12.46% Upside)
• Action: Downgraded Date: 01/27/26
• Date: Action: Downgraded 01/27/26

The score is driven primarily by strong financial performance (high profitability, very low leverage, and solid cash generation). Offsetting this are a premium valuation (high P/E) and only mixed/neutral near-term technical signals.

Positive Factors

High Profitability

Sustained high operating and net margins indicate durable pricing power and an efficient cost base. That margin profile supports internal reinvestment, dividend capacity and resilient earnings through cycles, reducing dependence on rapid revenue expansion for returns.

Very Conservative Balance Sheet

Extremely low leverage and a large equity base provide financial flexibility to fund capex, acquisitions or dividends without stress. This conservatism enhances downside protection in downturns and gives management optionality for strategic investments over the medium term.

Strong Cash Generation

High free cash flow and near‑one-to-one cash conversion with net income show earnings quality and reliable internal funding. Consistent cash generation enables capital returns, debt neutrality and reinvestment capacity, supporting durable operational and strategic initiatives.

Negative Factors

Modest Revenue Growth

Top-line growth remains modest despite a recent acceleration, constraining long-term scalability. Reliance on margin expansion and operational leverage to drive earnings raises sensitivity to competitive pressure and limits the compounding of enterprise value over multi-year horizons.

Year-to-Year Margin Variability

Volatile margins reduce predictability of operating profits and complicate investment planning. If variability persists, it can undermine the durability of returns, increase forecast error for capital allocation, and make sustained payout or reinvestment strategies harder to execute.

Free Cash Flow Volatility & Slight Debt Uptick

Intermittent free cash flow swings and a move away from near-zero debt reduce predictability of internal funding. Even a small rise in leverage alongside FCF variability can constrain optionality for M&A or shareholder returns and raises capital structure risk during downturns.

MAMEZO DIGITAL HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

Mamezo Digital Holdings Co., Ltd. provides IT solutions in Japan. It offers cloud, digital, robotics, and education solutions. The company also develops control systems and devices in digital fields, such as automated driving; IoT devices; data analytics platforms; AI support systems; ERP peripheral systems; and support for system overhauls, as well as constructs simulation environments for product validation. In addition, it provides ERP installation and consulting with a focus on Microsoft Dynamics 365 and SAP; Microsoft Dynamics 365 technician and user training services; AI-based robot installation support services; digital strategy planning services; and personnel training services with practical skills in development technologies, DX, and AI. The company was founded in 1999 and is based in Shinjuku, Japan. Mamezo Digital Holdings Co., Ltd. operates as a subsidiary of Mamezou K2TOP Holdings Corporation.

How the Company Makes Money

MAMEZO DIGITAL HOLDINGS CO., LTD. generates revenue through a variety of channels within the digital solutions sector. The company earns money by offering subscription-based services for its cloud computing platforms, which provide scalable and secure infrastructure solutions to businesses. Additionally, it charges fees for digital marketing services aimed at increasing clients' online presence and customer reach. IT consulting services also contribute to the company's income, where it provides strategic guidance and technical support to organizations undergoing digital transformations. The company's earnings are further bolstered by strategic partnerships with technology providers and industry leaders, enabling it to offer comprehensive solutions and expand its market presence.

MAMEZO DIGITAL HOLDINGS CO.,LTD. Financial Statement Overview

Summary

High-quality fundamentals supported by strong profitability (EBIT margin ~19.3%, net margin ~13.6%), a very conservative balance sheet with minimal leverage (debt-to-equity ~0.03 in 2025), and solid cash generation (FCF ~1.27B; FCF/net income ~0.93). Key offsets are still-modest revenue growth overall and some year-to-year volatility in margins and free cash flow.

Income Statement

Profitability is a clear strength: in the latest annual period (2025-03-31), gross margin was ~33.5% and operating profitability was strong (EBIT margin ~19.3%; EBITDA margin ~20.1%), with net margin ~13.6%. Revenue growth has accelerated meaningfully versus prior years (2025 revenue growth ~3.77 vs ~0.08 in 2024 and ~0.084 in 2023), and earnings expanded alongside sales (net income rose from ~1.16B to ~1.43B). Offsetting this, top-line growth is still modest overall, and margins show some year-to-year variability (e.g., 2022 had notably weaker EBITDA margin).

Balance Sheet

The balance sheet appears very conservative with minimal leverage: debt-to-equity is extremely low across periods (0.0 in 2023–2024; ~0.03 in 2025). Equity remains sizable relative to assets (2025 equity ~3.41B vs assets ~4.71B), supporting financial flexibility. Returns on shareholders’ capital are also very strong (ROE ~42% in 2025; ~51% in 2024), though the ROE level has fluctuated, and the uptick in debt in 2025 is a small negative from an otherwise near-debt-free profile.

Cash Flow

Cash generation is solid and improving: 2025 operating cash flow increased to ~1.37B and free cash flow rose to ~1.27B, with free cash flow close to reported earnings (free cash flow to net income ~0.93). Cash conversion also strengthened, with operating cash flow modestly exceeding net income in 2025 (operating cash flow to net income ~1.06). The main weakness is volatility in free cash flow trajectory (free cash flow declined in 2024 vs 2023 before rebounding in 2025), indicating some variability in cash realization year to year.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.72B	10.55B	9.59B	8.86B	8.17B
Gross Profit	3.60B	3.54B	3.18B	2.88B	2.38B
EBITDA	2.15B	2.15B	1.90B	1.64B	697.68M
Net Income	1.46B	1.43B	1.16B	1.10B	1.13B
Balance Sheet
Total Assets	4.46B	4.71B	3.54B	4.62B	3.42B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.83B	828.37M	39.39M	468.96M
Total Debt	302.72M	102.89M	0.00	0.00	10.32M
Total Liabilities	1.65B	1.31B	1.28B	1.23B	1.02B
Stockholders Equity	2.81B	3.41B	2.26B	3.39B	2.40B
Cash Flow
Free Cash Flow	0.00	1.27B	819.23M	1.04B	455.15M
Operating Cash Flow	0.00	1.37B	1.15B	1.24B	587.77M
Investing Cash Flow	0.00	-180.24M	1.92B	-1.54B	-1.15B
Financing Cash Flow	0.00	-187.01M	-2.29B	-126.32M	-26.75M

MAMEZO DIGITAL HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3530.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:202A, the sentiment is Neutral. The current price of 3530 is below the 20-day moving average (MA) of 3539.50, below the 50-day MA of 3582.50, and above the 200-day MA of 2594.06, indicating a neutral trend. The MACD of -5.68 indicates Negative momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 9.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:202A.

MAMEZO DIGITAL HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3984	80 Outperform	¥23.81B	16.06	―	0.73%	17.86%	21.52%
3393	74 Outperform	¥26.98B	11.13	―	4.36%	12.32%	10.42%
202A	74 Outperform	¥56.74B	34.44	―	2.74%	―	―
4674	72 Outperform	¥57.64B	11.56	16.12%	2.91%	10.02%	16.48%
4725	65 Neutral	¥30.97B	10.75	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4819	46 Neutral	¥93.03B	15.20	2.57%	1.97%	19.61%	―

MAMEZO DIGITAL HOLDINGS CO.,LTD. Corporate Events

Mamezo Co., Ltd. Reports Strong Financial Growth and Announces Subsidiary Merger

Mamezo Co., Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with net sales and profits showing notable year-on-year growth. The company plans to merge its three wholly-owned subsidiaries and transition to non-consolidated financial statements, which is expected to impact its future financial reporting and operations.