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

• Market Cap: ¥14.43B
• Dividend Yield: 2.51%
• Average Volume (3M): 60.49K
• Price to Earnings (P/E): 12.1
• 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: ¥1,185.00 ▼(-0.75% Downside)
• 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

Conservative balance sheet

Debt-to-equity near 0.12 indicates the company carries minimal financial leverage, giving durable flexibility to fund operations, absorb revenue shocks, and invest in digital service capabilities without reliance on external financing. This supports long-term stability and strategic optionality.

Strong free cash flow conversion

Free cash flow that nearly matches net income signals high cash quality and conversion. Durable FCF supports recurring investments, client-delivery capacity, dividends or buybacks, and reduces refinancing risk. It underpins sustainable operations across industry cycles.

Improving returns and sales growth

ROE recovery to ~15.4% alongside mid-single-digit revenue growth indicates improving profitability and expanding economic returns on equity. If sustained, this reflects better pricing, utilization, or client mix, supporting durable earnings power and shareholder returns over months ahead.

Negative Factors

Margins remain below prior peaks

Although margins have rebounded from recent troughs, current net and operating margins are materially below the company's earlier peak range. Durable margin expansion is required to restore historical profitability; otherwise earnings are vulnerable to cost pressure or client mix shifts.

Modest cash flow relative to revenue

Operating cash flow that is only ~26% of revenue suggests cash generation per sales dollar is modest. Over time this can constrain reinvestment in talent and tools critical for digital services, limiting scale-up potential unless margins or working capital efficiency improve.

Returns still below prior peak levels

ROE improvement is positive, but remaining well under the FY2022 peak implies the company must sustain higher margins, revenue quality, or capital efficiency to reach prior profitability. Continued reliance on recovery leaves upside contingent on execution and stable demand.

Members Co., Ltd. Business Overview & Revenue Model

Company Description

Members Co., Ltd. provides digital marketing services in Japan. The company offers website operation management, web integration, social media marketing, promotional support, and web strategy/UX design services. Members Co., Ltd. was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Members primarily makes money by providing digital support services to corporate clients, with revenue generated from fees paid for the provision of specialized talent and operational support (e.g., staffed teams or assigned specialists) and from project-based delivery of digital production/marketing-related work. Key revenue streams include (1) ongoing client engagements where Members supplies dedicated digital personnel or teams to run and improve clients’ digital marketing and digital operations on a continuing basis, and (2) discrete projects for building, improving, or operating digital assets (such as websites, content, campaigns, and associated measurement/optimization work). Significant partnerships or major customer concentration details: null. Additional material factors influencing earnings (e.g., pricing model specifics such as hourly vs. monthly retainers, and segment-level breakdown): null.

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	11.87B	11.68B	11.37B	10.44B	8.68B
Cash, Cash Equivalents and Short-Term Investments	3.52B	4.01B	3.78B	4.48B	5.23B	4.14B
Total Debt	605.32M	939.75M	715.83M	662.78M	598.25M	392.10M
Total Liabilities	5.70B	6.07B	5.75B	5.01B	4.54B	4.06B
Stockholders Equity	5.91B	5.81B	5.93B	6.37B	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 above the 20-day moving average (MA) of 1130.15, below the 50-day MA of 1249.90, and below the 200-day MA of 1225.37, indicating a bearish trend. The MACD of -40.66 indicates Negative momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 53.15 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	¥13.10B	11.18	―	1.27%	7.24%	215.65%
9782	71 Outperform	¥20.96B	16.52	―	9.87%	11.51%	-29.82%
2130	69 Neutral	¥14.43B	12.09	―	2.51%	10.17%	327.27%
7095	66 Neutral	¥19.07B	8.10	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.96B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%

Members Co., Ltd. Corporate Events

Members Co. Reshapes Leadership With Shift to Single Representative Director

Members Co., Ltd. will change its leadership structure on April 1, 2026, as Chairman and Representative Director Tadashi Kenmochi becomes a non-executive director, while the company shifts from a dual- to a single-representative director system under President Akihiko Takano. The move is part of a planned management succession under its “Keep Young” policy and follows progress in business recovery under the mid-term growth strategy, with Kenmochi remaining a major shareholder and advisor to support sustainable growth and long-term value creation.

The most recent analyst rating on (JP:2130) stock is a Hold with a Yen1294.00 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. Ties FY2026 3Q Results to Sustainability-Focused Membership Vision

Members Co., Ltd. outlined its mission and long-term vision alongside its FY2026 third-quarter financial results, emphasizing the concept of “membership” as a core approach to marketing and corporate activity. The company positions internet and digital technologies as tools to enhance engagement between companies and individuals, fostering cooperative relationships that encourage voluntary contributions and socially positive behavior.

The release underscores Members’ intention to tackle major social issues, particularly climate change and population decline, by leveraging creators across Japan and working with business partners and consumers. Through this strategy, the company aims to lead a transition toward a sustainable, decarbonized society that balances economic activity with people’s happiness, environmental stewardship, and broader social well-being.

The most recent analyst rating on (JP:2130) stock is a Hold with a Yen1294.00 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. Swings Back to Profit and Affirms Strong FY2026 Outlook

Members Co., Ltd. reported non-consolidated revenue of ¥17.65 billion for the nine months ended December 31, 2025, up 10.1% year on year, with operating profit recovering to ¥752 million from a loss a year earlier. Quarterly profit reached ¥533 million, driving basic earnings per share to ¥41.75 and lifting the equity ratio to 50.9%, while total assets remained broadly stable.

The company maintained its dividend policy with a zero interim dividend and a full-year forecast of ¥33 per share, slightly above the prior year. It also reaffirmed its full-year forecast for the fiscal year ending March 31, 2026, projecting revenue of ¥24.4 billion and profit of ¥930 million, and announced a transition to consolidated financial reporting, signaling growth in scale and complexity of operations.

The most recent analyst rating on (JP:2130) stock is a Hold with a Yen1294.00 price target. To see the full list of analyst forecasts on Members Co., Ltd. stock, see the JP:2130 Stock Forecast page.

Members Co. 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.