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

• Market Cap: ¥34.14B
• Dividend Yield: 1.75%
• Average Volume (3M): 22.70K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.32
• Revenue Growth: 12.46%
• EPS Growth: 157.69%
• Country: JP
• Employees: 590
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Food Confectioners
• EPS (TTM): 17.02
• Shares Outstanding: 17,289,309
• 10 Day Avg. Volume: 21,840
• 30 Day Avg. Volume: 22,700
• PEG Ratio: 0.53
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 63 Neutral
• Price Target: ―

Meito Sangyo shows a solid financial base with revenue growth and a healthy balance sheet, although profitability and cash flow issues persist. Technical indicators suggest caution due to the stock trading below key moving averages. Valuation metrics are favorable with a low P/E ratio and decent dividend yield, enhancing its attractiveness to value investors.

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

Company Description

Meito Sangyo Co., Ltd. manufactures and sells confectionery, beverages, seasoning foods, food additives, and other food products in Japan. It also provides chocolates, candies, ice creams, and nutritious food products. In addition, the company manufactures and sells pharmaceuticals, quasi-drugs, medical devices, veterinary drugs, cosmetics, and other chemical products. Further, it constructs and manages public golf courses; and rents real estate properties. The company was founded in 1945 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Meito Sangyo Co., Ltd. generates revenue through the production and sale of its confectionery and dairy products. The company's revenue model is based on both domestic and international sales, leveraging its established brand reputation and extensive distribution network. Key revenue streams include retail sales in supermarkets and convenience stores, wholesale distribution to other businesses, and exports to foreign markets. Additionally, Meito Sangyo may engage in strategic partnerships or collaborations with other companies to expand its product offerings and market reach. Seasonal and limited-edition products also contribute to revenue by capitalizing on consumer trends and preferences.

Meito Sangyo Co., Ltd. Financial Statement Overview

Summary

Meito Sangyo displays solid revenue growth and a strong balance sheet, but faces profitability and cash flow management challenges. The company needs to enhance operational efficiency and stabilize cash flows to leverage its stable financial position for future growth.

Income Statement

The company's revenue has shown a positive growth trend, increasing from 21.1 billion to 27.5 billion yen from 2022 to TTM, indicating a solid revenue trajectory. However, the net income has been volatile, with a negative net profit margin reported in 2024. The gross profit margin remains stable, but EBIT and EBITDA margins are relatively low compared to industry standards, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio improving over the years, indicating a well-managed leverage. The equity ratio is healthy, suggesting financial stability. However, the return on equity has been inconsistent, reflecting fluctuations in profitability.

Cash Flow

Cash flow analysis reveals significant challenges, particularly with a negative free cash flow in recent years. The operating cash flow has been inconsistent, and the free cash flow to net income ratio highlights potential cash flow management issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
27.45B	24.39B	22.73B	21.14B	24.18B	23.00B
	Gross Profit
7.63B	5.37B	5.09B	5.05B	8.39B	7.10B
	EBIT
1.23B	232.00M	95.00M	350.00M	403.00M	-629.00M
	EBITDA
1.00B	1.10B	1.70B	2.48B	2.44B	1.64B
	Net Income Common Stockholders
2.77B	-703.00M	700.00M	1.82B	1.02B	608.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.72B	6.61B	7.25B	10.53B	5.95B	4.54B
	Total Assets
85.41B	81.73B	70.28B	70.87B	74.15B	66.95B
	Total Debt
9.27B	12.91B	10.71B	11.43B	12.43B	12.88B
	Net Debt
1.55B	6.55B	6.46B	6.55B	7.98B	9.63B
	Total Liabilities
29.50B	30.66B	25.64B	26.15B	27.88B	25.68B
	Stockholders Equity
55.91B	51.07B	44.64B	44.71B	46.27B	41.27B
Cash Flow		Free Cash Flow
0.00	-1.31B	-2.80B	1.39B	1.97B	1.37B
	Operating Cash Flow
0.00	2.90B	-85.00M	2.63B	3.28B	3.75B
	Investing Cash Flow
0.00	-3.61B	1.21B	-532.00M	-1.19B	-1.21B
	Financing Cash Flow
0.00	1.72B	-1.25B	-1.67B	-893.00M	-1.29B

Meito Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2003.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2003 is below the 20-day moving average (MA) of 2065.55, below the 50-day MA of 2029.60, and above the 200-day MA of 1935.97, indicating a neutral trend. The MACD of -7.99 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, 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
2216	77 Outperform	¥54.50B	15.71		2.50%	11.18%	28.19%
2221	70 Neutral	¥34.64B	10.68		1.01%	11.13%	7.80%
2211	67 Neutral	¥61.04B	37.63		1.26%	3.75%	44.95%
Sector *	64 Neutral	$8.82B	14.56	4.78%	173.92%	3.50%	2.20%
2207	63 Neutral	¥34.14B	7.24		1.75%	12.46%	157.69%
2209	62 Neutral	¥31.66B	14.38		1.49%	7.17%	45.25%
2217	61 Neutral	¥35.24B	24.24		1.62%	3.10%	-15.65%

Meito Sangyo Co., Ltd. Corporate Events

Meito Sangyo Reports Strong Financial Growth and Increases Dividend Forecast

Meito Sangyo Co., Ltd. reported significant financial growth for the nine months ended December 31, 2024, with net sales increasing by 16.8% and operating profit soaring by 384.5% compared to the same period in 2023. The company also announced a revision to their dividend forecast, indicating a rise in annual dividends, reflecting their strong financial position and confidence in continued growth.