Meito Sangyo Co., Ltd. (2207) AI Stock Analysis

• Market Cap: ¥34.41B
• Dividend Yield: 1.57%
• Average Volume (3M): 14.79K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.33
• Revenue Growth: 15.08%
• EPS Growth: N/A
• Country: JP
• Employees: 590
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Food Confectioners
• EPS (TTM): 17.02
• Shares Outstanding: 17,289,309
• 10 Day Avg. Volume: 16,600
• 30 Day Avg. Volume: 14,790
• PEG Ratio: -0.65
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.97
• 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: ¥2,235.00
• Price Target Upside: 10.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,260.00 ▲(11.38%Upside)

The most significant factor is the strong financial performance, highlighted by robust revenue and profit growth, improved margins, and effective debt management. The stock's undervaluation based on its P/E ratio and reasonable dividend yield further boosts its attractiveness. However, the technical indicators show limited positive momentum, which moderates the overall score.

Meito Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Meito Sangyo Co., Ltd. (2207) is a Japanese company primarily engaged in the production and sale of confectionery products. The company operates mainly within the food sector, offering a variety of sweets and desserts, including chocolates, puddings, and other related products. Meito Sangyo is known for its focus on quality and innovation in confectionery, catering to both domestic and international markets.

How the Company Makes Money

Meito Sangyo Co., Ltd. generates revenue through the manufacture and distribution of its confectionery products, which are sold in retail outlets, supermarkets, and through online platforms. The company earns money by developing a diverse range of sweets that appeal to different consumer tastes and preferences, ensuring a steady demand for their products. Strategic partnerships with retailers and distributors help in expanding their market reach and increasing sales volume. Additionally, Meito Sangyo may engage in seasonal product launches and limited-edition offerings that can boost revenue during peak periods, such as holidays and special occasions.

Meito Sangyo Co., Ltd. Financial Statement Overview

Summary

Meito Sangyo Co., Ltd. exhibits a robust recovery with strong revenue and profit growth, improved margins, and a healthier balance sheet. The company has effectively managed its debt and enhanced operational efficiencies. However, cash flow conversion from net income could be further optimized to strengthen its financial position.

Income Statement

Meito Sangyo Co., Ltd. has demonstrated strong revenue growth with a 15.1% increase from 2024 to 2025, indicating a positive growth trajectory. The gross profit margin improved to 27.9% in 2025, reflecting effective cost management. The net profit margin turned positive at 16.8% in 2025, a significant recovery from previous losses. EBIT and EBITDA margins also showed substantial improvement, reaching 5.0% and 29.6%, respectively, suggesting enhanced operational efficiency.

Balance Sheet

The company's balance sheet shows a solid equity base with an equity ratio of 65.9% in 2025, indicating financial stability. The debt-to-equity ratio decreased to 0.17, reflecting reduced leverage and lower financial risk. Return on equity improved significantly to 8.6% in 2025, driven by the return to profitability, although it remains below industry highs, suggesting room for further improvement.

Cash Flow

Operating cash flow increased to ¥4.2 billion in 2025, supporting a positive cash flow trend. Free cash flow turned positive to ¥714 million after being negative previously, indicating improved cash generation. However, the free cash flow to net income ratio remains relatively low at 0.15, suggesting potential challenges in converting income into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.45B	28.07B	24.39B	22.73B	21.14B	24.18B
Gross Profit	7.63B	7.82B	5.37B	5.09B	5.05B	8.39B
EBITDA	1.00B	8.32B	2.06B	1.70B	2.48B	2.44B
Net Income	2.77B	4.72B	-703.00M	700.00M	1.82B	1.02B
Balance Sheet
Total Assets	85.41B	83.33B	81.73B	70.28B	70.87B	74.15B
Cash, Cash Equivalents and Short-Term Investments	7.72B	7.19B	6.61B	7.25B	10.53B	5.95B
Total Debt	9.27B	9.14B	12.91B	10.71B	11.43B	12.43B
Total Liabilities	29.50B	28.41B	30.66B	25.64B	26.15B	27.88B
Stockholders Equity	55.91B	54.91B	51.07B	44.64B	44.71B	46.27B
Cash Flow
Free Cash Flow	0.00	714.00M	-1.31B	-2.80B	1.39B	1.97B
Operating Cash Flow	0.00	4.24B	2.90B	-85.00M	2.63B	3.28B
Investing Cash Flow	0.00	960.00M	-3.61B	1.21B	-532.00M	-1.19B
Financing Cash Flow	0.00	-4.37B	1.72B	-1.25B	-1.67B	-893.00M

Meito Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2029.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2207, the sentiment is Positive. The current price of 2029 is above the 20-day moving average (MA) of 2020.40, above the 50-day MA of 2026.02, and above the 200-day MA of 1955.43, indicating a bullish trend. The MACD of 4.46 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 42.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2207.

Meito Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2209	76 Outperform	¥32.06B	14.50		1.26%	6.01%	14.02%
2207	74 Outperform	¥34.41B	7.29		1.57%	15.08%	―
2221	72 Outperform	¥34.68B	10.63		0.84%	13.43%	60.08%
2216	69 Neutral	¥69.73B	19.80		1.95%	11.18%	28.19%
Sector *	65 Neutral	$26.88B	15.20	-4.27%	3.19%	1.02%	1.89%
2211	65 Neutral	¥63.02B	38.68		1.23%	3.75%	44.95%
2217	59 Neutral	¥33.40B	26.96		1.81%	0.62%	-32.02%

Meito Sangyo Co., Ltd. Corporate Events

Meito Sangyo Announces Treasury Shares Disposal for Employee Incentives

Meito Sangyo Co., Ltd. has announced the disposal of 13,291 treasury shares as part of a restricted stock remuneration plan aimed at enhancing corporate value and aligning the interests of directors, officers, and employees with those of shareholders. This initiative, approved at the company’s 80th Annual General Meeting, is designed to motivate key personnel by providing them with shares, thus fostering a sense of ownership and commitment to the company’s long-term success.

Meito Sangyo Co., Ltd. Announces New Plant Construction for ACE BAKERY

Meito Sangyo Co., Ltd. has announced the construction of a new plant for its subsidiary, ACE BAKERY Co., Ltd., in response to the aging infrastructure of the Mitsubuchi Plant and increasing demand for gelatin dessert products. The new facility, located in Kasugai City, will enhance production capacity and ensure stable production, with an investment of approximately 7.7 billion yen. The construction is set to begin in October 2025, with operations expected to start in January 2027. The financial impact on the company’s current fiscal year is projected to be minimal.

Meito Sangyo Announces Trade Name Change

Meito Sangyo Co., Ltd. has announced a proposal to amend its Articles of Incorporation, which will be presented at the upcoming Annual General Meeting of Shareholders. The proposed amendment involves changing the company’s trade name to Kabushiki Kaisha meito, effective September 1, 2025, reflecting a strategic rebranding effort.

Meito Sangyo Co., Ltd. Reports Robust Financial Growth for FY 2025

Meito Sangyo Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 15.1% and operating profit surging by 505.7% compared to the previous year. The company also announced a forecast for continued growth in the next fiscal year, with expectations of a 5.1% increase in net sales and a 13.8% rise in operating profit, indicating strong market positioning and potential positive implications for stakeholders.