Members Co., Ltd. (2130) AI Stock Analysis

• Market Cap: ¥16.88B
• Dividend Yield: 2.51%
• Average Volume (3M): 60.49K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.88
• Revenue Growth: 10.17%
• EPS Growth: 327.27%
• Country: JP
• Employees: 2,806
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 18.53
• Shares Outstanding: 13,423,300
• 10 Day Avg. Volume: 81,750
• 30 Day Avg. Volume: 60,493
• PEG Ratio: 0.23
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 12.51
• 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): 62.6
• Revenue Forecast (FY): ¥24.30B

• Rating: 66 Neutral
• Price Target: ¥1,281.00 ▲(7.29% Upside)

Members Co., Ltd. shows strong financial stability with solid revenue growth and improved profitability. The technical analysis presents mixed signals with moderate bullish momentum but potential overbought conditions. The valuation is reasonable, supported by a fair P/E ratio and a decent dividend yield. These factors collectively contribute to a balanced stock score.

Positive Factors

Revenue Growth

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

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without significant debt burden.

Improved Profitability

Improved profitability reflects effective cost control and operational efficiency, contributing to sustainable financial health.

Negative Factors

Declining Equity Ratio

A declining equity ratio may signal rising liabilities or reduced equity, potentially impacting the company's financial stability and risk profile.

Operational Cash Flow Concerns

Lower operational cash flow relative to net income could limit the company's ability to fund operations and growth internally, affecting liquidity.

Decreased Gross Profit Margin

A decreasing gross profit margin may indicate rising costs or pricing pressures, which could challenge long-term profitability and competitiveness.

Members Co., Ltd. Business Overview & Revenue Model

Company Description

Members Co., Ltd. (2130) is a company primarily engaged in the development and operation of membership-based services and platforms. The company operates in various sectors, including digital media, e-commerce, and lifestyle services, offering a diverse range of core products and services aimed at enhancing customer engagement and loyalty. Through its innovative approach, Members Co., Ltd. focuses on creating value-added experiences for its members, leveraging technology to facilitate seamless interactions and transactions.

How the Company Makes Money

Members Co., Ltd. generates revenue through multiple streams, primarily from subscription fees collected from its members for access to exclusive content and services. Additionally, the company earns income from partnerships with brands and businesses that seek to promote their products or services within the Members platform. This includes advertising revenue and affiliate marketing commissions. The company's strong focus on customer retention and loyalty programs also contributes to its profitability, as satisfied members are more likely to renew their subscriptions and engage in repeat transactions.

Members Co., Ltd. Financial Statement Overview

Summary

Members Co., Ltd. demonstrates solid financial health with consistent revenue growth and strong cash flow generation. However, profitability margins have declined, and there is room for improvement in operational efficiency. The balance sheet is stable with low leverage, providing a strong foundation for future growth.

Income Statement

Members Co., Ltd. shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.94%. The gross profit margin remains consistent around 21%, but there is a noticeable decline from historical highs of around 31%. Net profit margin has decreased to 1.56% TTM, indicating pressure on profitability. EBIT and EBITDA margins are relatively low, suggesting potential inefficiencies or increased costs.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.16 TTM, indicating low leverage. Return on equity is modest at 6.34% TTM, reflecting moderate profitability. The equity ratio is strong, suggesting a solid financial foundation, but there is a slight decline in stockholders' equity over recent periods.

Cash Flow

Cash flow performance is robust, with a TTM free cash flow growth of 7.82%. The operating cash flow to net income ratio is healthy at 0.23, and the free cash flow to net income ratio is high at 0.95, indicating efficient cash generation relative to earnings. This suggests strong cash management and the ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.39B	22.33B	20.47B	17.66B	14.94B	12.09B
Gross Profit	5.55B	4.67B	4.29B	5.20B	4.76B	3.86B
EBITDA	1.88B	1.10B	566.58M	1.93B	2.24B	1.61B
Net Income	866.39M	349.82M	126.52M	1.01B	1.40B	896.36M
Balance Sheet
Total Assets	10.88B	11.78B	11.53B	11.32B	10.40B	8.65B
Cash, Cash Equivalents and Short-Term Investments	3.51B	4.01B	3.78B	4.48B	5.23B	4.14B
Total Debt	702.67M	939.75M	715.83M	662.78M	598.25M	392.10M
Total Liabilities	5.30B	5.97B	5.59B	4.94B	4.51B	4.03B
Stockholders Equity	5.58B	5.81B	5.93B	6.38B	5.90B	4.61B
Cash Flow
Free Cash Flow	1.26B	1.15B	561.30M	1.26B	1.64B	1.78B
Operating Cash Flow	1.30B	1.21B	584.97M	1.40B	1.65B	1.83B
Investing Cash Flow	-49.83M	-49.66M	-100.03M	-1.17B	-98.81M	-57.80M
Financing Cash Flow	-968.42M	-923.62M	-1.19B	-980.29M	-468.95M	-751.67M

Members Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1194.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2130, the sentiment is Positive. The current price of 1194 is above the 20-day moving average (MA) of 1153.80, above the 50-day MA of 1166.60, and above the 200-day MA of 1187.07, indicating a bullish trend. The MACD of 34.68 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 87.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2130.

Members Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4767	73 Outperform	¥17.23B	13.68	―	3.96%	3.83%	-18.07%
6045	68 Neutral	¥12.55B	18.89	―	2.19%	14.43%	10.99%
2491	67 Neutral	¥22.26B	4.96	―	7.85%	-3.20%	34.08%
2130	66 Neutral	¥16.88B	18.64	―	2.51%	10.17%	327.27%
2389	63 Neutral	¥32.14B	25.44	―	2.14%	-22.10%	-16.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	46 Neutral	¥9.24B	32.30	―	―	-2.68%	91.68%

Members Co., Ltd. Corporate Events

Members Co., Ltd. Commits to Sustainable Transformation

Members Co., Ltd. has announced its commitment to transforming into a decarbonized and sustainable economic model. By collaborating with business partners and consumers, the company aims to contribute to societal betterment and spiritual wealth, aligning with its VISION2030 to address climate change and population decline.

Members Co., Ltd. Reports Strong Financial Turnaround Post-Restructuring

Members Co., Ltd. reported a notable turnaround in its financial performance for the six months ending September 30, 2025, with a revenue increase of 10.3% year-on-year, reaching 11,448 million yen. This improvement follows the company’s transition to non-consolidated financial reporting after the absorption-type merger of its subsidiary, Members Energy Co., Ltd. The company anticipates continued growth with a full-year revenue forecast of 24,400 million yen, indicating a 9.3% increase, and a significant rise in operating profit and profit before tax.

Members Co., Ltd. Revises Financial Forecasts Upwards Amid Strong DX Domain Performance

Members Co., Ltd. reported a notable difference between its financial forecasts and actual results for the second quarter of the fiscal year ending March 31, 2026, with significant improvements in revenue and profitability. The company revised its full-year financial forecasts upwards, driven by strong performance in the DX domain and effective cost management, signaling a positive outlook for stakeholders.

Members Co., Ltd. Reports Improved Financial Performance and Positive Outlook

Members Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with a 10.3% increase in revenue and a return to profitability following an organizational restructuring. The company has transitioned to non-consolidated financial reporting after merging with its subsidiary, Members Energy Co., Ltd., and forecasts continued growth in revenue and profit for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.

Members Co., Ltd. Finalizes Stock Acquisition Rights Allotment

Members Co., Ltd. has finalized the allotment details for stock acquisition rights, which are linked to business performance, to its directors, executive officers, and employees. This move involves the issuance of 327,500 shares of common stock, aiming to align the interests of the company’s leadership and workforce with its performance goals, potentially impacting its operational dynamics and stakeholder engagement.