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Members Co., Ltd. (JP:2130)
:2130
Japanese Market

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

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JP

Members Co., Ltd.

(2130)

Rating:77Outperform
Price Target:
¥1,369.00
▲(14.66%Upside)
The overall stock score of 76.5 reflects the strong financial performance of Members Co., Ltd., supported by consistent revenue and earnings growth. While technical analysis indicates a positive trend, mixed momentum signals suggest caution. The high P/E ratio raises valuation concerns, though this is partially offset by a reasonable dividend yield.

Members Co., Ltd. (2130) vs. iShares MSCI Japan ETF (EWJ)

Members Co., Ltd. Business Overview & Revenue Model

Company DescriptionMembers Co., Ltd. (2130) is a Japanese company that primarily operates in the IT services sector. The company specializes in providing web production, system development, and IT consulting services. It caters to a wide range of industries by offering digital marketing solutions, user experience design, and digital transformation support to enhance business operations and customer engagement.
How the Company Makes MoneyMembers Co., Ltd. generates revenue through multiple streams within the IT services domain. The company's primary income sources include fees from web production and system development projects, where they design and implement digital solutions tailored to client needs. Additionally, Members Co., Ltd. earns from IT consulting services, providing strategic guidance and implementation support for digital transformations. The company may also engage in partnerships with technology providers to enhance service offerings, thus potentially creating additional revenue opportunities through collaborative projects.

Members Co., Ltd. Financial Statement Overview

Summary
Members Co., Ltd. showcases strong financial performance with robust revenue growth, efficient cost management, and a stable financial position characterized by low leverage and consistent cash flow generation. The income statement, balance sheet, and cash flow statement collectively demonstrate financial health and growth potential in the advertising industry.
Income Statement
85
Very Positive
The company's income statement shows strong profitability with a consistent increase in total revenue, reaching ¥22.3 billion in the latest annual report. Gross profit margin and net profit margin are healthy, indicating efficient cost management and strong bottom-line performance. Revenue growth has been robust over the years, with a noticeable increase from ¥10.6 billion in 2020 to ¥22.3 billion in 2025. The EBIT and EBITDA margins demonstrate effective operational management, showcasing the company's ability to generate earnings from its operations. Overall, the income statement reflects a positive growth trajectory and solid financial health.
Balance Sheet
80
Positive
The balance sheet exhibits a solid financial position with a healthy equity ratio and significant stockholders' equity of ¥5.8 billion against total assets of ¥11.8 billion. The debt-to-equity ratio is low, highlighting prudent leverage use and reduced financial risk. The company's assets have grown consistently, showing stability and potential for long-term growth. Despite a slight decline in cash and cash equivalents from 2023 to 2025, the overall liquidity remains strong. The return on equity is positive, reflecting the company's ability to generate returns for shareholders.
Cash Flow
78
Positive
The cash flow statement indicates strong operational cash flow generation, with operating cash flow consistently above ¥1 billion annually. Free cash flow has shown a positive trajectory, supporting the company's ability to reinvest in growth opportunities and maintain strong liquidity. The operating cash flow to net income ratio is robust, indicating effective cash generation relative to net income. Although capital expenditures have increased slightly, they remain manageable. The overall cash flow position supports the company's financial flexibility and ability to fund future expansion.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
22.33B20.47B17.66B14.94B12.09B
Gross Profit
4.67B4.29B5.20B4.76B3.86B
EBIT
503.14M46.95M1.44B1.88B1.26B
EBITDA
1.10B566.58M1.93B2.24B1.61B
Net Income Common Stockholders
349.82M126.52M1.01B1.40B896.36M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.01B3.78B4.48B5.23B4.14B
Total Assets
11.78B11.53B11.32B10.40B8.65B
Total Debt
939.75M715.83M662.78M598.25M392.10M
Net Debt
-3.08B-3.06B-3.82B-4.63B-3.75B
Total Liabilities
5.97B5.59B4.94B4.51B4.03B
Stockholders Equity
5.81B5.93B6.38B5.90B4.61B
Cash FlowFree Cash Flow
1.15B561.30M1.26B1.64B1.78B
Operating Cash Flow
1.21B584.97M1.40B1.65B1.83B
Investing Cash Flow
-49.66M-100.03M-1.17B-98.81M-57.80M
Financing Cash Flow
-923.62M-1.19B-980.29M-468.95M-751.67M

Members Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1194.00
Price Trends
50DMA
1157.62
Positive
100DMA
1138.00
Positive
200DMA
1050.06
Positive
Market Momentum
MACD
21.83
Negative
RSI
50.57
Neutral
STOCH
24.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2130, the sentiment is Neutral. The current price of 1194 is above the 20-day moving average (MA) of 1181.55, above the 50-day MA of 1157.62, and above the 200-day MA of 1050.06, indicating a bullish trend. The MACD of 21.83 indicates Negative momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2130.

Members Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥8.23B12.28
2.17%17.22%96.65%
77
Outperform
¥15.92B43.58
2.68%9.10%156.17%
71
Outperform
¥14.17B10.64
4.76%5.72%-9.32%
67
Neutral
¥26.08B5.98
7.19%5.36%32.46%
64
Neutral
¥18.83B8.40
5.13%-9.56%127.51%
61
Neutral
$14.33B5.90-3.82%8.01%2.79%-33.24%
43
Neutral
¥8.92B210.01
32.30%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2130
Members Co., Ltd.
1,194.00
317.75
36.26%
JP:2389
Digital Holdings, Inc.
1,285.00
249.75
24.12%
JP:2491
ValueCommerce Co., Ltd.
807.00
-356.24
-30.62%
JP:4767
TOW Co., Ltd.
315.00
-27.94
-8.15%
JP:6045
Rentracks Co., Ltd.
1,060.00
614.90
138.15%
JP:6094
FreakOut Holdings, Inc.
499.00
-337.00
-40.31%

Members Co., Ltd. Corporate Events

Members Co., Ltd. Announces Treasury Stock Disposal for Restricted Stock Compensation
Jun 19, 2025

Members Co., Ltd. has announced a resolution to dispose of its treasury stock as part of a restricted stock compensation plan aimed at increasing corporate value and aligning the interests of directors and executive officers with those of shareholders. This initiative involves the disposal of 13,797 shares, valued at 16,832,340 yen, to selected directors and executive officers, with a transfer restriction period set for three years, reflecting the company’s strategy to enhance long-term shareholder value.

Members Co., Ltd. Announces Board of Directors Changes
May 23, 2025

Members Co., Ltd. announced changes to its Board of Directors, with reappointments and new appointments being proposed for approval at the upcoming Annual General Meeting. These changes aim to strengthen the company’s governance structure, with implications for its strategic direction and oversight.

Members Co., Ltd. Proposes Increased Dividend for 13th Consecutive Year
May 23, 2025

Members Co., Ltd. announced a resolution to propose a dividend of 32.00 yen per share for the fiscal year ending March 31, 2025, marking the 13th consecutive year of dividend increases. This decision aligns with the company’s policy to enhance shareholder returns while preparing for future business investments, aiming for a medium-term dividend on equity ratio of approximately 5%.

Members Co., Ltd. Reports Strong Financial Recovery for FY 2025
May 21, 2025

Members Co., Ltd. reported a significant improvement in its non-consolidated financial results for the fiscal year ended March 31, 2025, with a notable increase in revenue and profit before tax. The company’s strategic acquisition of Members Energy Co., Ltd. and its shift to a non-consolidated accounting approach have positively impacted its financial performance, reflecting a strong operational recovery and improved profitability.

Members Co., Ltd. Achieves Compliance with TSE Prime Market Standards
May 14, 2025

Members Co., Ltd. has confirmed its compliance with the Tokyo Stock Exchange’s prime market listing maintenance standards as of March 31, 2025, after addressing previous shortcomings in market capitalization of tradable shares. The company improved its financial performance by increasing value-added sales in the DX domain and shifting to profit-oriented management, achieving a 30.8% growth in the DX domain and an operating income of 493 million yen. Members Co., Ltd. aims to continue enhancing its corporate value and sustainable growth by supporting in-house DX production and developing decarbonized DX business and human resources.

Members Co., Ltd. Surpasses Earnings Forecast with Strong DX Domain Growth
May 14, 2025

Members Co., Ltd. reported a significant increase in its full-year earnings for the fiscal year ended March 31, 2025, surpassing its previous forecasts. The company achieved record-high revenues and value-added sales, driven by strategic enhancements in human resource development and sales structure in the DX domain. Despite a slight decrease in gross profit margin due to year-end bonuses, the company improved its profitability through cost controls and a shift towards profit-oriented management, resulting in a substantial rise in operating profit.

Members Co., Ltd. Reports Strong Financial Performance Post-Reorganization
May 14, 2025

Members Co., Ltd. reported its non-consolidated financial results for the fiscal year ending March 31, 2025, showing a significant increase in revenue and profit before tax compared to the previous year. The reorganization and transition to non-consolidated accounting have impacted the company’s financial reporting, with notable improvements in operating profit and cash flows from operating activities, indicating a positive outlook for stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.