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

• Market Cap: ¥39.77B
• Dividend Yield: 1.52%
• Average Volume (3M): 49.72K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.40
• Revenue Growth: 5.86%
• EPS Growth: 57.87%
• Country: JP
• Employees: 590
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 72.13
• Shares Outstanding: 17,289,309
• 10 Day Avg. Volume: 32,640
• 30 Day Avg. Volume: 49,720
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 47.29
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,657.00 ▲(13.02% Upside)

Meito Sangyo Co., Ltd. demonstrates strong financial performance with significant revenue and profit growth, which is the most significant factor in the score. The technical analysis indicates bullish momentum, although the stock is in overbought territory. The valuation is reasonable, with a fair P/E ratio and modest dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates a positive trajectory and suggests the company's products are gaining market traction, supporting long-term business expansion.

Margin Improvement

Improved margins demonstrate effective cost control and operational efficiency, which can enhance profitability and provide a competitive edge in the industry.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Cash Flow Conversion

Low cash flow conversion indicates challenges in turning income into cash, which could limit the company's ability to reinvest in the business or return capital to shareholders.

Return on Equity

While improving, the ROE remains below industry highs, suggesting the company may not be utilizing its equity as effectively as competitors, potentially impacting investor returns.

Free Cash Flow Challenges

Despite positive free cash flow, the low conversion rate indicates potential inefficiencies in cash management, which could affect the company's ability to fund growth initiatives.

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

Company Description

Meito Sangyo Co., Ltd. (2207) is a prominent Japanese company primarily engaged in the manufacturing and distribution of food products, particularly in the confectionery and beverage sectors. The company offers a diverse range of products, including instant noodles, snacks, and various types of beverages, catering to both domestic and international markets. With a strong focus on quality and innovation, Meito Sangyo has established itself as a key player in the food industry, emphasizing sustainable practices and customer satisfaction.

How the Company Makes Money

Meito Sangyo Co., Ltd. generates revenue through several key streams. The company earns money primarily from the sale of its food products, including instant noodles, snacks, and beverages. It has a well-established distribution network that enables it to reach both retail and wholesale markets effectively. Additionally, Meito Sangyo may enter partnerships with other food manufacturers and distributors, enhancing its market reach and operational efficiency. The company also invests in marketing and brand development to attract and retain customers, which contributes to its overall sales growth. Seasonal promotions and product launches further bolster its revenue by tapping into specific consumer demands.

Meito Sangyo Co., Ltd. Financial Statement Overview

Summary

Meito Sangyo Co., Ltd. shows 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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.25B	28.07B	24.39B	22.73B	21.14B	24.18B
Gross Profit	8.07B	7.82B	5.37B	5.09B	5.05B	8.39B
EBITDA	5.57B	8.32B	1.10B	1.70B	4.78B	3.45B
Net Income	4.74B	4.72B	-703.00M	700.00M	1.82B	1.02B
Balance Sheet
Total Assets	83.59B	83.33B	81.73B	70.28B	70.87B	74.15B
Cash, Cash Equivalents and Short-Term Investments	5.42B	7.19B	6.61B	7.25B	10.53B	5.95B
Total Debt	9.65B	9.14B	12.91B	10.71B	11.43B	12.43B
Total Liabilities	27.87B	28.41B	30.66B	25.64B	26.15B	27.88B
Stockholders Equity	55.72B	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: 2351.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2351 is above the 20-day moving average (MA) of 2324.50, above the 50-day MA of 2219.64, and above the 200-day MA of 2102.53, indicating a bullish trend. The MACD of 40.11 indicates Positive momentum. The RSI at 63.85 is Neutral, neither overbought nor oversold. The STOCH value of 43.39 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
2207	75 Outperform	¥39.77B	11.31	―	1.52%	5.86%	57.87%
2209	75 Outperform	¥33.08B	12.58	―	1.23%	6.74%	29.20%
2211	71 Outperform	¥67.87B	35.51	―	1.14%	8.17%	10.65%
2216	68 Neutral	¥71.50B	20.19	―	4.58%	7.74%	0.96%
2217	68 Neutral	¥32.01B	35.29	―	1.34%	0.87%	-50.41%
2221	66 Neutral	¥34.59B	15.08	―	0.84%	15.03%	-26.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Meito Sangyo Co., Ltd. Corporate Events

Meito Sangyo Reports Mixed Financial Results for First Half of 2025

Meito Sangyo Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 3.1% increase in net sales compared to the previous year. Despite the rise in sales, the profit attributable to owners of the parent decreased by 35.3%, highlighting challenges in maintaining profitability. The company also announced an increase in annual dividends per share, reflecting a positive outlook for shareholders.

Meito Sangyo Announces Share Buyback Plan

Meito Sangyo Co., Ltd. has announced the acquisition of up to 900,000 of its own shares, representing 5.31% of its total issued shares, with a maximum total acquisition amount of 1.5 billion yen. This strategic move, set to occur between October 30, 2025, and October 29, 2026, is aimed at optimizing capital structure and potentially enhancing shareholder value.

Meito Sangyo Announces Secondary Offering Details

Meito Sangyo Co., Ltd. has announced the selling price and details for a secondary offering of its common stock, as resolved by its Board of Directors. The offering includes a selling price of 2,066 yen per share, with a total selling price amounting to 5,857,316,600 yen, and a delivery date set for October 29, 2025. This move is part of a broader strategy to manage its equity structure and potentially enhance market liquidity.

Meito Sangyo Co., Ltd. Revises Dividend Forecast and Management Indicators

Meito Sangyo Co., Ltd. announced a revision to its dividend forecast and management indicators under its Medium-Term Management Plan, ‘MEITO CHALLENGE 2026.’ The company plans to increase the year-end dividend per share from ¥20 to ¥25, resulting in a total annual dividend of ¥45 for the fiscal year ending March 31, 2026. This decision reflects the company’s commitment to enhancing shareholder returns while maintaining stable dividends and investing in future growth. The revised management indicators also set a target of ¥50 per share for the fiscal year ending March 31, 2027, indicating a strategic focus on improving profitability and capital efficiency.

Meito Sangyo Revises Medium-Term Management Plan for Enhanced Shareholder Value

Meito Sangyo Co., Ltd. has revised its Medium-Term Management Plan, ‘MEITO CHALLENGE 2026,’ to enhance capital efficiency and shareholder value. The revised financial strategy includes optimizing the business portfolio, acquiring and canceling own shares, and revising dividend policies, aiming to improve return on equity and ensure stable shareholder returns.

Meito Sangyo Records Extraordinary Income and Revises Financial Forecast

Meito Sangyo Co., Ltd. has announced the recording of extraordinary income due to a gain from the partial sale of investment securities, aligning with Japan’s Corporate Governance Code to enhance asset efficiency. This move has led to a revision in the company’s financial forecast for the fiscal year ending March 31, 2026, with a significant increase in the profit attributable to owners of the parent, reflecting a 40% rise compared to the previous forecast.