Meito Sangyo Co., Ltd. (JP:2207)
:2207
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Meito Sangyo Co., Ltd.
(2207)
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Rating:56Neutral
Price Target:
¥3,183.00
▲(31.97% Upside)
Action:Downgraded
Date:05/16/26
The score is mainly held back by weak and volatile cash generation (negative 2026 operating cash flow and deeply negative free cash flow) alongside higher debt, despite stable revenues and improved profitability. Technicals are mixed with weaker near-term trend but supportive longer-term averages, while valuation is reasonable with a modest dividend yield.
Positive Factors
Stable revenue growth
A steady top-line (+~3% in 2026) indicates consistent demand for Meito Sangyo's confectionery portfolio in its domestic channels. Durable revenue growth supports planning, capacity utilization and incremental margin improvements, reducing execution risk over the next 2–6 months.
Negative Factors
Weak, volatile cash generation
Negative operating cash flow and a deep FCF swing in 2026 point to conversion problems between reported earnings and cash. Persistently weak cash generation undermines self-funding for capex/dividends, raises reliance on external financing, and heightens funding risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable revenue growth
A steady top-line (+~3% in 2026) indicates consistent demand for Meito Sangyo's confectionery portfolio in its domestic channels. Durable revenue growth supports planning, capacity utilization and incremental margin improvements, reducing execution risk over the next 2–6 months.
Read all positive factors
Meito Sangyo Co., Ltd. (2207) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥49.90B
Dividend Yield1.51%
Average Volume (3M)49.72K
Price to Earnings (P/E)16.3
Beta (1Y)0.32
Revenue Growth3.69%
EPS Growth-34.32%
CountryJP
Employees590
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)279.94
Shares Outstanding16,651,709
10 Day Avg. Volume32,640
30 Day Avg. Volume49,720
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)0.80
Price to Sales (P/S)1.71
P/FCF Ratio-4.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 man...
How the Company Makes Money
Meito Sangyo makes money mainly by manufacturing and selling branded confectionery products (e.g., chocolate and other sweets) through retail and wholesale distribution channels in Japan. Revenue is primarily generated from product sales volume an...
Meito Sangyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.25B | 29.11B | 28.07B | 24.39B | 22.73B | 21.14B |
| Gross Profit | 7.99B | 8.22B | 7.82B | 5.28B | 5.00B | 4.96B |
| EBITDA | 3.48B | 3.27B | 3.30B | 2.06B | 1.70B | 2.48B |
| Net Income | 4.74B | 3.07B | 4.72B | -703.00M | 700.00M | 1.82B |
Balance Sheet | ||||||
| Total Assets | 83.59B | 100.32B | 83.33B | 82.25B | 70.28B | 70.87B |
| Cash, Cash Equivalents and Short-Term Investments | 5.42B | 3.67B | 7.19B | 6.61B | 7.25B | 10.53B |
| Total Debt | 9.65B | 17.69B | 9.20B | 12.96B | 10.82B | 11.59B |
| Total Liabilities | 27.87B | 38.15B | 28.41B | 31.18B | 25.70B | 26.15B |
| Stockholders Equity | 55.72B | 62.16B | 54.91B | 51.07B | 44.64B | 44.71B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -12.24B | 714.00M | -1.31B | -2.77B | 1.39B |
| Operating Cash Flow | 0.00 | -708.00M | 4.24B | 2.90B | -85.00M | 2.63B |
| Investing Cash Flow | 0.00 | -9.30B | 960.00M | -3.61B | 1.21B | -532.00M |
| Financing Cash Flow | 0.00 | 6.39B | -4.37B | 1.72B | -1.25B | -1.67B |
Meito Sangyo Co., Ltd. Technical Analysis
Negative
2412.00
Price Trends
3072.03
Negative
2791.57
Positive
2475.64
Positive
Market Momentum
-10.52
Positive
40.15
Neutral
23.20
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 2412 is below the 20-day moving average (MA) of 3202.95, below the 50-day MA of 3072.03, and below the 200-day MA of 2475.64, indicating a neutral trend. The MACD of -10.52 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 23.20 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥68.59B | 7.81 | ― | 1.55% | 6.02% | 5.87% | |
69 Neutral | ¥49.28B | 12.53 | ― | 4.63% | 8.98% | 2.01% | |
65 Neutral | ¥207.81B | 12.79 | 13.33% | 3.47% | 3.37% | 5.12% | |
65 Neutral | ¥29.36B | 12.93 | ― | 1.23% | 5.09% | 10.97% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | ¥49.90B | 16.25 | ― | 1.51% | 3.69% | -34.32% | |
49 Neutral | ¥60.18B | 513.85 | ― | 1.14% | 9.13% | -21.27% |
* Consumer Defensive Sector Average
JP:2207
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Meito Sangyo Co., Ltd. Corporate Events
Meito Boosts Dividends as Profit Falls, Forecasts Operating Rebound in FY2027
May 14, 2026
Meito Co., Ltd. reported consolidated net sales of ¥29.1 billion for the fiscal year ended March 31, 2026, up 3.7% year on year, while operating profit fell 12.5% to ¥1.23 billion and profit attributable to owners of parent dropped 35% t...
Meito launches ¥2 billion share buyback and cancellation to bolster capital efficiency
May 14, 2026
Meito Co., Ltd. has approved a new share buyback and cancellation program as part of its medium-term plan, which prioritizes improving earning power, capital efficiency, and stable shareholder returns. The company will repurchase up to 800,000 com...
Meito boosts shareholder returns, hikes buybacks and plans asset sales to lift ROE and PBR
May 14, 2026
Meito Co., Ltd. has revised the financial strategy under its current medium-term plan after recognizing that, with one year remaining, return on equity is around its 5% target while price-to-book remains below 1x. To boost capital efficiency and s...
Meito Cancels 3.68% of Shares to Streamline Capital Structure
Mar 3, 2026
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 comp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.