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

• Market Cap: ¥44.53B
• Dividend Yield: 1.51%
• Average Volume (3M): 49.72K
• Price to Earnings (P/E): 14.4
• 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): 43.26
• Shares Outstanding: 16,651,709
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥3,077.00 ▲(27.57% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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 & Margin Improvement

Sustained top-line growth and materially improved margins reflect stronger product mix, pricing power, and cost control. These durable improvements enhance earnings resiliency, enable reinvestment in products and distribution, and support sustained profitability over the next several quarters.

Strong Balance Sheet & Low Leverage

A high equity ratio and very low leverage provide financial flexibility to fund capex, marketing, or M&A without heavy interest burden. This structural strength reduces solvency risk and supports strategic choices, enabling the company to withstand industry cyclicality and pursue long-term initiatives.

Improved Cash Generation

Return to positive operating and free cash flow signals better working-capital management and operational recovery. Durable cash generation improves funding capacity for dividends, capex, and product investment, and reduces dependence on external financing across the medium term.

Negative Factors

Low Cash Conversion of Earnings

A low FCF-to-net-income ratio indicates the company struggles to convert accounting profits into cash, likely due to working-capital needs or noncash items. Over months this can limit internal funding for growth, constrain dividend sustainability, and raise sensitivity to any margin pressure.

Moderate Return on Equity

Although ROE recovered, an 8.6% level suggests limited efficiency in deploying equity versus peers. Persistently moderate ROE can indicate slower shareholder value creation and signals the company may need further operational improvements or higher-return investments to meet investor return expectations.

Concentration in Domestic Confectionery

Heavy reliance on domestic confectionery sales concentrates revenue risk in one product category and geography. Over the medium term this limits growth levers, increases exposure to local demand shifts and competition, and makes long-term expansion more dependent on successful product or channel diversification.

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 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 financial recovery with significant 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2412.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2412 is below the 20-day moving average (MA) of 2616.30, below the 50-day MA of 2531.26, and above the 200-day MA of 2230.77, indicating a bullish trend. The MACD of 48.20 indicates Negative momentum. The RSI at 74.45 is Negative, neither overbought nor oversold. The STOCH value of 91.53 is Negative, 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
2201	76 Outperform	¥236.34B	12.43	13.33%	3.47%	4.21%	23.86%
2207	75 Outperform	¥44.53B	14.40	―	1.51%	5.86%	57.87%
2209	75 Outperform	¥33.23B	13.70	―	1.23%	6.74%	29.20%
2208	72 Outperform	¥79.76B	15.26	―	1.55%	5.78%	14.23%
2216	69 Neutral	¥63.43B	17.77	―	4.63%	7.74%	0.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2211	49 Neutral	¥63.92B	32.01	―	1.14%	8.17%	10.65%

Meito Sangyo Co., Ltd. Corporate Events

Meito Cancels 3.68% of Shares to Streamline Capital Structure

Meito Co., Ltd. has cancelled 637,600 of its common shares, representing 3.68% of the shares outstanding prior to the transaction, under provisions of Japan’s Companies Act. Following the cancellation completed on February 27, 2026, the company now has 16,651,708 shares issued, tightening its share base and potentially enhancing capital efficiency for existing shareholders.

The move follows resolutions adopted by the board in October 2025 and February 2026 and reflects an ongoing capital management strategy. By reducing the number of shares in circulation, Meito may improve metrics such as earnings per share and strengthen shareholder value, underscoring a proactive approach to balance sheet and equity structure optimization.

The most recent analyst rating on (JP:2207) stock is a Buy with a Yen3080.00 price target. To see the full list of analyst forecasts on Meito Sangyo Co., Ltd. stock, see the JP:2207 Stock Forecast page.

Meito Brings Forward Cancellation Date After Early Completion of Share Buyback

Meito Co., Ltd. has accelerated its previously announced share cancellation program, moving the cancellation date for its treasury shares forward from October 30, 2026 to February 27, 2026. The change follows the earlier-than-planned completion of a share buyback authorized in October 2025, under which the company acquired 637,600 shares for about 1.5 billion yen via market purchases.

The buyback had originally allowed for up to 900,000 shares, or 5.31% of the company’s outstanding stock excluding treasury shares, to be repurchased over a one-year period ending October 29, 2026. By completing the acquisition phase in just over two months and expediting the cancellation, Meito is signaling a more immediate return of capital to shareholders and a tighter share float, which may enhance earnings per share and potentially support its valuation in the market.

The most recent analyst rating on (JP:2207) stock is a Buy with a Yen2924.00 price target. To see the full list of analyst forecasts on Meito Sangyo Co., Ltd. stock, see the JP:2207 Stock Forecast page.

Meito Raises Dividend Forecast and Ups Dividend KPIs Under Medium-Term Plan

Meito Co., Ltd. has revised its dividend policy under the “MEITO CHALLENGE 2026” plan, reflecting a focus on capital efficiency, human capital, and shareholder value. The company aims to balance stable, progressive dividends with investments for future growth, while actively using measures such as treasury share acquisition and retirement to enhance returns.

The board raised the year-end dividend forecast for the fiscal year ending March 31, 2026, from ¥25 to ¥35 per share, lifting the total annual dividend forecast to ¥55. In line with steady performance and an enhanced capital strategy, Meito also increased its dividend KPIs, now targeting annual dividends per share of ¥55 for fiscal 2026 and ¥60 for fiscal 2027, signaling a stronger commitment to shareholder returns.

The most recent analyst rating on (JP:2207) stock is a Buy with a Yen2924.00 price target. To see the full list of analyst forecasts on Meito Sangyo Co., Ltd. stock, see the JP:2207 Stock Forecast page.

Meito posts modest profit growth but lowers earnings base as it boosts dividends

Meito Co., Ltd. reported consolidated net sales of ¥22.1 billion for the nine months ended December 31, 2025, up 3.9% year on year, with operating profit inching up 1.5% to ¥1.27 billion and ordinary profit rising 10.4% to ¥2.77 billion. Profit attributable to owners of parent, however, fell 34.0% to ¥2.92 billion, reflecting a tougher earnings environment despite higher comprehensive income and an expanded asset base.

Total assets increased to ¥100.2 billion and equity reached ¥61.3 billion, although the equity-to-asset ratio declined to 61.1% from 65.9%, partly amid higher treasury share holdings. The company raised its full-year dividend forecast sharply to ¥55 per share from ¥35 in the prior year, and maintained its earnings outlook for fiscal 2026, signaling confidence in cash generation despite forecasting a 40.7% drop in full-year profit attributable to owners of parent.

The most recent analyst rating on (JP:2207) stock is a Buy with a Yen2924.00 price target. To see the full list of analyst forecasts on Meito Sangyo Co., Ltd. stock, see the JP:2207 Stock Forecast page.

Meito Completes ¥1.5 Billion Share Buyback, to Cancel 3.68% of Outstanding Stock

Meito Co., Ltd. has completed a share buyback program authorized by its board in October 2025, repurchasing a total of 637,600 common shares for approximately ¥1.5 billion through market purchases on the Tokyo Stock Exchange between October 30, 2025 and January 13, 2026. The company will cancel all 637,600 repurchased shares—equivalent to 3.68% of shares outstanding before cancellation—on October 30, 2026, reducing the total number of issued shares to 16,651,708, a move that tightens the share base and is likely aimed at improving capital efficiency and enhancing shareholder returns through a higher per-share value.

The most recent analyst rating on (JP:2207) stock is a Buy with a Yen2657.00 price target. To see the full list of analyst forecasts on Meito Sangyo Co., Ltd. stock, see the JP:2207 Stock Forecast page.

Meito Accelerates Share Buyback, Repurchasing 335,500 Shares in December

Meito Co., Ltd. reported that it repurchased 335,500 of its own common shares on the Tokyo Stock Exchange during December 2025 for a total of ¥784,467,588, under an authorization based on Article 459(1) of the Companies Act and its Articles of Incorporation. This transaction forms part of a broader buyback program approved by the board in October 2025 allowing purchases of up to 900,000 shares or ¥1.5 billion by October 29, 2026; as of December 31, 2025, cumulative repurchases under this mandate total 516,100 shares for about ¥1.197 billion, indicating active use of the authorization that may support capital efficiency and shareholder value by reducing the free float and outstanding shares.

The most recent analyst rating on (JP:2207) stock is a Buy with a Yen2657.00 price target. To see the full list of analyst forecasts on Meito Sangyo Co., Ltd. stock, see the JP:2207 Stock Forecast page.