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

• Market Cap: ¥18.77B
• Dividend Yield: 2.51%
• Average Volume (3M): 60.49K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.86
• Revenue Growth: 10.17%
• EPS Growth: 327.27%
• Country: US
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,491.00 ▲(24.87% 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

Low Leverage / Strong Balance Sheet

A debt-to-equity of 0.16 gives durable financial flexibility, lowering refinancing and interest-rate risk. This balance sheet strength supports sustained investment in platforms, cushions downturns, and preserves capacity to fund growth or return capital over the next several quarters.

Improved Return on Equity

ROE rising to ~11.7% signals more efficient use of shareholder capital and improving profitability trends. Sustained ROE improvement supports reinvestment in products and member services, strengthening competitive position and potential for steady shareholder returns over 2–6 months.

Strong Free Cash Flow Conversion

Near-1.0 FCF-to-net-income conversion and positive FCF growth indicate the business converts earnings into cash reliably. That durable cash generation supports reinvestment, partnerships, dividends, and reduces reliance on external financing for platform expansion over the medium term.

Negative Factors

Weak Operating Cash Flow Quality

An OCF-to-net-income ratio of 0.26 implies earnings include significant non-cash items or timing differences, raising concerns about earnings quality. Persistently low operational cash conversion can constrain organic investment and weaken resilience to shocks over coming quarters.

Slight Decline in Equity Ratio

A falling equity ratio erodes the firm's capital cushion and can signal rising liabilities or shrinking equity base. Over time this reduces financial flexibility, increases vulnerability to adverse cycles, and may limit capacity for opportunistic investment or M&A activity.

Pressure on Operating Margins

Declining gross and operating margins point to rising costs or pricing pressure at the core business level. Even with improving net margin, weaker EBIT/EBITDA margins may signal structural margin compression that can reduce reinvestment capacity and long-term profitability sustainability.

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 revenue growth and improved profitability metrics. The balance sheet is strong with low leverage, although there is a slight decline in the equity ratio. Cash flow generation is positive, but operational cash flow relative to net income could be improved. Overall, the company is financially stable with room for operational enhancements.

Income Statement

Members Co., Ltd. has shown consistent revenue growth with a TTM growth rate of 2.78%. The gross profit margin is stable at 22.04%, though it has decreased from previous years. The net profit margin has improved to 2.84% in the TTM, indicating better cost management. However, the EBIT and EBITDA margins have seen a decline, suggesting potential operational challenges.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.16, indicating low leverage. Return on equity has improved to 11.67% in the TTM, reflecting better profitability. However, the equity ratio has slightly decreased, which could indicate increased liabilities or reduced equity.

Cash Flow

Free cash flow has grown by 1.93% in the TTM, showing positive cash generation. The operating cash flow to net income ratio is 0.26, suggesting that cash generation from operations is lower relative to net income. The free cash flow to net income ratio remains strong at 0.94, indicating efficient cash conversion.

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: Negative
• STOCH: Neutral

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 below the 20-day moving average (MA) of 1352.05, below the 50-day MA of 1225.02, and below the 200-day MA of 1209.08, indicating a bullish trend. The MACD of 57.35 indicates Negative momentum. The RSI at 75.30 is Negative, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, 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
2491	79 Outperform	¥21.42B	4.76	―	7.85%	-3.20%	34.08%
4767	73 Outperform	¥17.18B	13.50	―	3.96%	3.83%	-18.07%
6045	68 Neutral	¥13.32B	20.15	―	2.19%	14.43%	10.99%
2130	66 Neutral	¥18.77B	20.35	―	2.51%	10.17%	327.27%
2389	61 Neutral	¥32.34B	25.39	―	2.14%	-22.10%	-16.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	46 Neutral	¥9.58B	33.87	―	―	-2.68%	91.68%

Members Co., Ltd. Corporate Events

Members Co. to Adopt Consolidated IFRS Reporting After ajike Acquisition, Issues Strong FY2026 Forecast

Members Co., Ltd. announced it will shift to consolidated accounting under International Financial Reporting Standards (IFRS) from the fiscal year ending March 31, 2026, following the January 1, 2026 acquisition of ajike Co., Ltd. as a subsidiary. The company released its first full-year consolidated IFRS forecast for FY2025–2026, projecting revenue of ¥24.4 billion and a sharp increase in profitability, including operating profit of ¥1.4 billion and profit attributable to owners of the parent of ¥930 million, with basic earnings per share estimated at ¥72.80. Management noted that integrating ajike’s results has only a minimal impact on previously announced non-consolidated IFRS forecasts, which remain unchanged, and that going forward, guidance will be provided on a consolidated IFRS basis, signaling a structural shift in financial reporting that better reflects the group’s overall performance for investors and other stakeholders.

The most recent analyst rating on (JP:2130) stock is a Buy with a Yen1592.00 price target. To see the full list of analyst forecasts on Members Co., Ltd. stock, see the JP:2130 Stock Forecast page.

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.

The most recent analyst rating on (JP:2130) stock is a Hold with a Yen1330.00 price target. To see the full list of analyst forecasts on Members Co., Ltd. stock, see the JP:2130 Stock Forecast page.

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.

The most recent analyst rating on (JP:2130) stock is a Hold with a Yen1330.00 price target. To see the full list of analyst forecasts on Members Co., Ltd. stock, see the JP:2130 Stock Forecast page.

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.

The most recent analyst rating on (JP:2130) stock is a Hold with a Yen1330.00 price target. To see the full list of analyst forecasts on Members Co., Ltd. stock, see the JP:2130 Stock Forecast page.

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.

The most recent analyst rating on (JP:2130) stock is a Hold with a Yen1330.00 price target. To see the full list of analyst forecasts on Members Co., Ltd. stock, see the JP:2130 Stock Forecast page.