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

• Market Cap: ¥34.11B
• Dividend Yield: 1.58%
• Average Volume (3M): 17.97K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.32
• Revenue Growth: 15.08%
• EPS Growth: N/A
• Country: JP
• Employees: 590
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Food Confectioners
• EPS (TTM): 17.02
• Shares Outstanding: 17,289,309
• 10 Day Avg. Volume: 14,630
• 30 Day Avg. Volume: 17,970
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,241.00 ▲(11.49%Upside)

Meito Sangyo Co., Ltd. has shown strong financial performance and attractive valuation metrics, indicating a robust recovery and potential undervaluation. However, technical indicators suggest a neutral market sentiment, and cash flow conversion needs enhancement.

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

Company Description

Meito Sangyo Co., Ltd. (2207) is a Japanese company engaged primarily in the food industry. The company specializes in the manufacture and sale of confectionery products, dairy products, and other related items. Meito Sangyo is known for its diverse range of sweet treats, including chocolates, candies, and other dessert items, as well as a variety of dairy-based products such as milk, yogurt, and ice cream. The company operates predominantly within Japan but also serves international markets through a network of subsidiaries and distribution channels.

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 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
	EBIT
1.23B	1.41B	232.00M	95.00M	350.00M	403.00M
	EBITDA
1.00B	8.32B	2.06B	1.70B	2.48B	2.44B
	Net Income Common Stockholders
2.77B	4.72B	-703.00M	700.00M	1.82B	1.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.72B	7.19B	6.61B	7.25B	10.53B	5.95B
	Total Assets
85.41B	83.33B	81.73B	70.28B	70.87B	74.15B
	Total Debt
9.27B	9.14B	12.91B	10.71B	11.43B	12.43B
	Net Debt
1.55B	1.94B	6.55B	6.46B	6.55B	7.98B
	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: Negative
• Last Price: 2010.00
• 50DMA: Negative
• 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 Negative. The current price of 2010 is below the 20-day moving average (MA) of 2011.05, below the 50-day MA of 2028.06, and above the 200-day MA of 1942.88, indicating a neutral trend. The MACD of -6.45 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 43.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥65.45B	18.87		2.61%	11.18%	28.19%
2207	73 Outperform	¥34.11B	7.23		1.58%	15.08%	―
2221	72 Outperform	¥34.39B	10.60		0.84%	13.43%	60.07%
2209	69 Neutral	¥31.61B	14.35		1.28%	6.01%	14.07%
Sector *	65 Neutral	$8.88B	15.01	4.67%	6.15%	3.61%	-2.60%
2211	62 Neutral	¥60.39B	37.23		1.28%	3.75%	44.95%
2217	59 Neutral	¥33.80B	27.44		1.79%	0.62%	-32.02%

Meito Sangyo Co., Ltd. Corporate Events

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.