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

• Market Cap: ¥15.31B
• Dividend Yield: 2.51%
• Average Volume (3M): 60.49K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.76
• Revenue Growth: 10.17%
• EPS Growth: 327.27%
• Country: JP
• Employees: 2,806
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 26.43
• 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): 72.8
• Revenue Forecast (FY): ¥24.30B

• Rating: 69 Neutral
• Price Target: ¥1,344.00 ▲(12.56% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by strong financial quality (low leverage, improving returns, and high free-cash-flow conversion), supported by reasonable valuation and a moderate dividend yield. This is partly offset by weak near-term technicals, with the stock trading below key moving averages despite oversold readings.

Positive Factors

Strong cash generation

High free cash flow that almost equals reported net income indicates excellent cash conversion and recurring cash generation. This strengthens the company’s capacity to fund operations, invest in client delivery, sustain dividends, and weather downturns without relying on external financing.

Conservative balance sheet

Very low leverage alongside improving ROE shows the company has boosted returns without materially increasing financial risk. A conservative capital structure provides flexibility for reinvestment or opportunistic M&A and reduces solvency risk across economic cycles.

Recurring, service-based revenue model

A business model built on ongoing client engagements plus project work creates stable, repeatable revenue and deep client relationships. Supplying specialized talent and operational teams supports high client stickiness and predictable revenue streams over the medium term.

Negative Factors

Margins below prior peaks

Although margins have rebounded, current profitability remains well below earlier peak ranges. That implies limited structural margin expansion to date; sustained margin recovery is needed for stronger returns and to justify higher reinvestment or dividend commitments over the medium term.

Modest topline growth

Revenue growth is currently modest, suggesting limited organic expansion or slower new-client acquisition. Given the people-driven service model, sustained top-line acceleration is required to scale operating leverage and improve margins, otherwise profitability gains may be constrained.

Cash flow modest vs revenue

Operating cash flow of roughly 26% of revenue indicates cash inflows are modest compared with the sales base. For a services firm, this may reflect billing timing or working-capital pressure and limits the free cash available to expand capacity or absorb cyclical demand without affecting liquidity.

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

Financials are solid overall: low leverage (debt-to-equity ~0.12), improving ROE (~15.4% TTM), and strong free-cash-flow generation (~¥1.33B) with excellent cash conversion (FCF ~98% of net income). The main limiter is that the profit rebound, while sharp (net margin ~4.1%, operating margin ~6.1%), is still below FY2021–FY2023 levels, so durability of margins remains the key question.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up ~2.4% versus the last annual period, but profitability has rebounded sharply: net margin improved to ~4.1% (from ~1.6% in FY2025) and operating margin to ~6.1% (from ~2.3%). That said, margins remain well below the stronger FY2021–FY2023 levels (when net margin was ~5.7%–9.4%), indicating the business is still recovering from a prior profitability dip rather than compounding at peak profitability.

Balance Sheet

The balance sheet looks conservative with low leverage (debt-to-equity ~0.12 in TTM (Trailing-Twelve-Months), broadly in line with prior years). Equity has remained fairly stable over time, and return on equity has improved to ~15.4% in TTM (Trailing-Twelve-Months) from ~6.0% in FY2025, signaling better earnings power without meaningfully increasing debt. A key watch-out is that returns are still below the FY2022 peak (~23.8%), so continued profitability recovery matters to keep balance-sheet quality translating into higher shareholder returns.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) free cash flow is ~¥1.33B and closely matches earnings (free cash flow is ~98% of net income), suggesting strong cash conversion. Free cash flow growth in TTM (Trailing-Twelve-Months) is solid (~5.5%) and operating cash flow is consistently positive across years. The main weakness is that operating cash flow relative to revenue remains modest (~0.26 in TTM (Trailing-Twelve-Months)), implying cash inflows are not especially high versus the sales base even though conversion versus earnings is healthy.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.96B	22.33B	20.47B	17.66B	14.94B	12.09B
Gross Profit	5.99B	4.67B	4.29B	5.20B	4.76B	3.86B
EBITDA	2.06B	1.10B	566.58M	1.93B	2.24B	1.61B
Net Income	978.37M	349.82M	126.52M	1.01B	1.40B	896.36M
Balance Sheet
Total Assets	11.61B	11.78B	11.53B	11.32B	10.40B	8.65B
Cash, Cash Equivalents and Short-Term Investments	3.52B	4.01B	3.78B	4.48B	5.23B	4.14B
Total Debt	738.23M	939.75M	715.83M	662.78M	598.25M	392.10M
Total Liabilities	5.70B	5.97B	5.59B	4.94B	4.51B	4.03B
Stockholders Equity	5.91B	5.81B	5.93B	6.38B	5.90B	4.61B
Cash Flow
Free Cash Flow	1.33B	1.15B	561.30M	1.26B	1.64B	1.78B
Operating Cash Flow	1.36B	1.21B	584.97M	1.40B	1.65B	1.83B
Investing Cash Flow	-46.86M	-49.66M	-100.03M	-1.17B	-98.81M	-57.80M
Financing Cash Flow	-970.19M	-923.62M	-1.19B	-980.29M	-468.95M	-751.67M

Members Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2130, the sentiment is Negative. The current price of 1194 is below the 20-day moving average (MA) of 1200.65, below the 50-day MA of 1296.36, and below the 200-day MA of 1227.66, indicating a bearish trend. The MACD of -36.79 indicates Negative momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2130.

Members Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7068	75 Outperform	¥14.47B	11.52	―	1.27%	7.24%	215.65%
9782	71 Outperform	¥22.65B	22.69	―	9.87%	11.51%	-29.82%
2130	69 Neutral	¥15.31B	14.99	―	2.51%	10.17%	327.27%
7095	66 Neutral	¥20.16B	7.57	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.94B	31.64	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.86B	19.09	―	7.85%	-3.20%	34.08%

Members Co., Ltd. Corporate Events

Members Co. rebounds to profit and sticks with FY2026 guidance

Members Co., Ltd. reported non-consolidated nine-month revenue of ¥17.65 billion and a return to profitability with ¥533 million in net income, rebounding from a prior-year loss and lifting the equity ratio to 50.9%. The company reaffirmed its FY2026 forecast ahead of transitioning to consolidated reporting, projecting ¥24.4 billion in revenue and ¥930 million in profit, supported by a planned ¥33 year-end dividend that signals confidence in sustained growth.

The most recent analyst rating on (JP:2130) stock is a Buy with a Yen1560.00 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. Updates Internal Control Policy for Consolidated Group Governance

Members Co., Ltd. has resolved at its board meeting to partially revise its Basic Policy on Establishing Internal Control Systems, mainly to update the framework governing proper operations across its corporate group in line with a transition to consolidated accounting. The changes, which also include minor wording and terminology adjustments, are aimed at strengthening group-wide governance, risk management, and information management systems, reinforcing oversight of subsidiaries and aligning internal controls with its evolving group structure, which may enhance transparency and operational efficiency for stakeholders.

The most recent analyst rating on (JP:2130) stock is a Buy with a Yen1575.00 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 Corporate Governance Policy to Reflect Consolidated Accounting Focus

Members Co., Ltd. has approved a partial revision of its Basic Policy on Corporate Governance, mainly to align its governance framework and disclosure standards with a transition to consolidated accounting. Key changes include incorporating “Group” and “consolidated” terminology throughout the policy, updating the standards for independence of outside directors, and shifting its dividend indicator to dividend on equity attributable to owners of the parent on a consolidated basis, alongside other textual and notation adjustments. These revisions are intended to better reflect the company’s group-based management approach, enhance transparency for shareholders and stakeholders, and strengthen the coherence of its governance system as it manages performance and capital policy at the consolidated group level.

The most recent analyst rating on (JP:2130) stock is a Buy with a Yen1575.00 price target. To see the full list of analyst forecasts on Members Co., Ltd. stock, see the JP:2130 Stock Forecast page.

Members Co. 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.