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Meiji Holdings Co Ltd (JP:2269)
:2269
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Meiji Holdings Co
(OTC:2269)
76Outperform
Meiji Holdings Co (2269) vs. S&P 500 (SPY)
Market Cap
$972.55B
Dividend Yield2.68%
Average Volume (3M)1.43M
Price to Earnings (P/E)19.7
Beta (1Y)0.07
Revenue Growth4.60%
EPS Growth-25.15%
CountryJP
Employees17,270
SectorConsumer Defensive
Sector Strength81
IndustryPackaged Foods
Share Statistics
EPS (TTM)26.70
Shares Outstanding282,200,000
10 Day Avg. Volume1,009,560
30 Day Avg. Volume1,429,306
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3,443.00Price Target Upside1.35% Upside
Rating ConsensusHold
Number of Analyst Covering1
Meiji Holdings Co Business Overview & Revenue Model
Company DescriptionMeiji Holdings Co., Ltd., through its subsidiaries, manufactures and sells dairy products, confectioneries, nutritional products, and pharmaceuticals in Japan and internationally. The company operates through two segments, Food and Pharmaceutical. It provides yogurt, drinking milk, beverages, cheese, butter and margarine, cream, ice cream, frozen foods, chocolates, gummy products, chewing gums, candies, sports nutrition products, infant and eternal formula, beauty supplements, OTC drugs, livestock products, and sugar, as well as transportation and distribution services. The company also provides drugs for infectious diseases and central nervous system disorders, as well as generic drugs; agricultural and livestock chemicals; human and veterinary vaccines, and blood plasma products; and veterinary drugs for livestock and fisheries comprising antimicrobial injection, oral administration, antipyretic, analgesic, anti-inflammatory, hemostatic, and breeding agents, disinfectants, insecticides, anthelmintics, metabolites, feed additives, and mixed feed; and companion animals, including anesthetics and painkillers, anti-parasitic and gastrointestinal drugs, anti-bacterial agents, antiplasmin agents, vitamin E preparations, and dietary supplements. Meiji Holdings Co., Ltd. was founded in 1916 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMeiji Holdings Co. generates revenue through its diverse portfolio of products within the food and pharmaceutical markets. In the food sector, the company earns money by manufacturing and selling dairy products such as milk, yogurt, and cheese, alongside confectioneries like chocolates and candies. These consumer goods are distributed through retail and wholesale channels, both domestically and internationally. In the pharmaceutical segment, the company makes money by developing and marketing prescription drugs and vaccines, which are sold to hospitals, clinics, and pharmacies. Additionally, Meiji Holdings benefits from research and development partnerships and government contracts, particularly in the pharmaceutical division, which contribute to its earnings.
Meiji Holdings Co Financial Statement Overview
Summary
Overall, Meiji Holdings Co exhibits strong financial health with consistent revenue growth and solid equity standing. While profitability remains solid, increasing debt levels and a slight decline in some margins warrant attention. The company's cash flow generation remains stable, supporting its ongoing operations and investments.Income Statement
The income statement indicates a strong performance with stable gross and net profit margins. The company achieved a Gross Profit Margin of 29.41% and a Net Profit Margin of 4.30% in TTM. However, there was a slight decline in EBIT and EBITDA margins from the previous year, suggesting potential cost pressures. Revenue growth has been consistent, with a 7.54% growth from the previous period, although it has slowed compared to earlier years.78
Positive
Balance Sheet
The balance sheet shows a robust financial position with a healthy Equity Ratio of 61.02%, indicating a strong reliance on equity financing. The Return on Equity is satisfactory at 6.64% in TTM. However, the Debt-to-Equity Ratio increased to 0.12, reflecting a rise in total debt, which could pose a risk if not managed carefully.82
Very Positive
Cash Flow
Cash flow analysis highlights a positive Free Cash Flow to Net Income Ratio of 0.27, indicating efficient cash generation relative to net income. However, Free Cash Flow has seen a decline from previous highs, and Operating Cash Flow to Net Income Ratio stands at 1.37, reflecting stable operational cash flow generation.75
Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.11T | 1.06T | 1.01T | 1.19T | 1.25T | Gross Profit |
| 336.88B | 306.80B | 323.25B | 449.63B | 462.52B | EBIT |
| 84.32B | 75.43B | 92.92B | 106.06B | 102.71B | EBITDA |
| 143.20B | 129.03B | 143.04B | 154.49B | 144.70B | Net Income Common Stockholders |
| 50.67B | 69.42B | 87.50B | 65.66B | 67.32B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 106.86B | 63.52B | 67.41B | 40.33B | 37.45B | Total Assets |
| 1.21T | 1.14T | 1.12T | 1.07T | 998.64B | Total Debt |
| 49.93B | 64.37B | 81.27B | 101.78B | 106.76B | Net Debt |
| -56.93B | 851.00M | 13.86B | 61.45B | 69.32B | Total Liabilities |
| 417.50B | 384.91B | 404.44B | 407.64B | 401.07B | Stockholders Equity |
| 746.53B | 711.91B | 673.34B | 621.43B | 562.75B |
| Cash Flow | Free Cash Flow | |||
| 54.54B | 12.84B | 34.36B | 55.78B | 42.97B | Operating Cash Flow |
| 107.98B | 85.01B | 127.53B | 123.68B | 114.10B | Investing Cash Flow |
| -24.60B | -36.79B | -27.61B | -93.11B | -70.81B | Financing Cash Flow |
| -43.77B | -54.73B | -77.00B | -28.29B | -30.29B |
Meiji Holdings Co Technical Analysis
Neutral
3397.00
Price Trends
3329.98
Positive
3189.47
Positive
3327.23
Positive
Market Momentum
57.31
Positive
46.45
Neutral
62.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2269, the sentiment is Neutral. The current price of 3397 is below the 20-day moving average (MA) of 3485.55, above the 50-day MA of 3329.98, and above the 200-day MA of 3327.23, indicating a neutral trend. The MACD of 57.31 indicates Positive momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 62.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2269.
Meiji Holdings Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
JP:2269
Meiji Holdings Co
3,397.00
37.17
1.11%
ASBRF
Asahi Group Holdings
13.89
2.56
22.59%
CCOJF
Coca-Cola Bottlers Japan Holdings
17.23
5.03
41.23%
ITOEF
ITO EN
22.00
-1.98
-8.26%
KNBWF
Kirin Holdings Company
12.85
-1.16
-8.28%
SOOBF
Sapporo Holdings
55.79
19.91
55.49%
Meiji Holdings Co Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q2-2025)
| % Change Since: -5.56%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong performances in the Pharmaceutical segment and growth in certain brands, but faced challenges in the Food segment, particularly in China and the U.S. The decline in profits and the revised vaccine outlook were notable concerns.Q2-2025 Updates
Positive Updates
Increase in Consolidated Net Sales
Consolidated net sales for the first half of fiscal 2024 was JPY 569.0 billion, a year-on-year increase of 4.2%.
Pharmaceutical Segment Performance
Net sales in the Pharmaceutical segment totaled JPY 113.8 billion, a year-on-year increase of 12.9%. Operating profit in this segment increased by 16.7% year-on-year.
Advanced Shipment of Influenza Vaccines
Advanced shipment of influenza vaccines contributed JPY 1.3 billion to the increase in profit.
Growth in Antibacterial Drug Sales
Sales of antibacterial injection increased, positively impacting the Pharmaceutical segment's performance.
Strong Performance of Domestic Business
Growth in sales, including high-profit items, is expected to continue in the second half, mainly driven by the domestic business.
Strong Growth in Hello Panda Brand
Hello Panda is expected to achieve JPY 19.9 billion in sales for the fiscal year, showing strong growth, particularly in the U.S.
Negative Updates
Decline in Profit Attributable to Owners
Profit attributable to owners of parent was JPY 26.8 billion, a year-on-year decline of 3.8% due to decreased extraordinary gains.
Challenges in Food Segment Operating Profit
Operating profit in the Food segment was JPY 27.6 billion, down 6.9% year-on-year, affected by increased raw material costs and declining profits from overseas operations.
Struggles in China and U.S. Operations
Subsidiaries in China and the U.S. experienced declining profits, impacting overall performance.
Deterioration in Product Mix
High-margin products such as probiotics and functional yogurt did not reach the planned targets, leading to a deteriorated product mix.
Decrease in Functional Yogurt Sales
Functional yogurt sales declined by 7% year-on-year, indicating a tough market situation.
Revised Downward Outlook for KOSTAIVE Vaccine
Shipment forecast for the KOSTAIVE vaccine was revised to less than half due to sluggish inoculation rates.
Company Guidance
In the earnings call for Q2 2025, Meiji Holdings provided comprehensive guidance on its financial performance and future outlook. For the first half of fiscal 2024, the company reported consolidated net sales of JPY 569.0 billion, marking a 4.2% increase year-on-year. However, operating profit remained steady at JPY 44.3 billion, while profit attributable to owners of the parent decreased by 3.8% to JPY 26.8 billion due to lower extraordinary gains. The Food segment experienced a 2.2% increase in net sales to JPY 455.4 billion, although operating profit declined by 6.9% year-on-year, affected by increased raw material costs and challenges in overseas operations. Meanwhile, the Pharmaceutical segment saw a significant boost, with net sales rising by 12.9% to JPY 113.8 billion and operating profit increasing by 16.7% to JPY 18.5 billion, aided by strong sales of antibacterial injections and influenza vaccines. For the second half, Meiji plans to achieve a year-on-year increase in consolidated net sales to JPY 589.9 billion and an operating profit of JPY 41.6 billion, focusing on price adjustments and strategic marketing to counter cost pressures.Meiji Holdings Co Corporate Events
Meiji Holdings Announces Leadership Transition
Apr 8, 2025
Meiji Holdings Co., Ltd. has announced a significant change in its management structure, with the appointment of new representative directors and directors for the company and its subsidiaries, effective June 27, 2025. This transition is part of a strategic move to adapt to evolving market conditions and enhance operational efficiency, potentially impacting the company’s positioning in the food and pharmaceutical sectors.
Meiji Holdings Reports Mixed Financial Performance for Nine Months Ending December 2024
Feb 10, 2025
Meiji Holdings Co., Ltd. reported its consolidated financial results for the first nine months ending December 31, 2024, showing a 5.0% increase in net sales compared to the previous year, reaching JPY 875,026 million. However, operating and ordinary profits decreased by 4.7% and 4.8% respectively, indicating challenges in maintaining profitability. Comprehensive income also saw a significant decline of 25.5%. The company has added Taiwan Meiji Pharma Co., Ltd. to its consolidation scope while removing two other companies, which might impact its market presence and strategic focus.
Meiji Holdings Expands into APAC with New Singapore Subsidiary
Feb 10, 2025
Meiji Holdings Co., Ltd. has announced plans to establish a new subsidiary in Singapore, Meiji Food Asia Pacific Pte. Ltd. (MFA), as a strategic move to enhance its operations in the APAC region. The new subsidiary will focus on management guidance for operating companies in the area, aiming to align more closely with local market needs and capitalize on expected economic growth. The establishment marks a significant step in Meiji’s 2026 Medium-Term Business Plan, emphasizing overseas expansion in the food segment. The financial impact of this development on the fiscal year ending March 2025 is anticipated to be minor.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.