Meiji Holdings Co (2269) AI Stock Analysis

• Market Cap: ¥1.07T
• Dividend Yield: 2.96%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.05
• Revenue Growth: 2.79%
• EPS Growth: -6.46%
• Country: JP
• Employees: 17,270
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 63.97
• Shares Outstanding: 282,200,000
• 10 Day Avg. Volume: 1,647,740
• 30 Day Avg. Volume: 2,774,413
• PEG Ratio: 7.15
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 54.83
• 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): 203.78
• Revenue Forecast (FY): ¥1.18T

• Rating: 62 Neutral
• Price Target: ¥4,082.00 ▲(34.59% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is held back primarily by weak cash-flow quality (negative free cash flow and low cash conversion) and only moderate profitability despite good revenue growth and a conservative balance sheet. Technicals are supportive with strong trend/momentum, while valuation appears reasonable-to-full with a moderate dividend yield.

Positive Factors

Diversified business model

Meiji’s dual-segment structure—branded consumer food (dairy, nutrition, confectionery) plus prescription pharmaceuticals and vaccines—creates durable revenue diversification. This reduces exposure to a single end-market, enabling cross-segment capital allocation and smoothing cyclical swings over months.

Sustained revenue growth

Consistent TTM revenue growth (~12.3%) signals persistent demand or successful product initiatives across Meiji’s segments. Durable top-line momentum supports reinvestment in higher-margin products and pharma R&D, helping absorb cost pressures and underpin medium-term operational stability.

Conservative balance sheet

A low debt-to-equity ratio (~0.13) and sizable equity base provide financial flexibility and low refinancing risk. This conservative structure supports strategic spending (capex, R&D, M&A) and dividend continuity through industry cycles, preserving operational resilience in the medium term.

Negative Factors

Negative free cash flow

A substantial negative free cash flow (~-30.8B) is a durable concern for capital allocation. Persistent FCF deficits constrain internal funding for R&D, capex, or dividends and may force reliance on external financing or asset sales, reducing long-term strategic flexibility.

Weak cash conversion

Operating cash flow covering only ~0.16x of net income indicates weak earnings-to-cash conversion. Low cash conversion raises earnings quality risks, increases reliance on working-capital management, and leaves the company exposed if revenue or margin trends deteriorate over the coming months.

Modest profitability and margin compression

A modest net margin (~3.9%) with recent compression reduces the buffer against input-cost inflation and competitive pricing. Lower margins limit reinvestment capacity and make earnings more sensitive to sales volatility, challenging sustainable profit expansion over the medium term.

Meiji Holdings Co Business Overview & Revenue Model

Company Description

Meiji 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 Money

Meiji Holdings generates revenue primarily through the sale of its food and pharmaceutical products. The Food Division is a key revenue driver, offering various dairy products such as milk, yogurt, and cheese, alongside confectionery items like chocolate and snacks. The Pharmaceuticals Division contributes significantly to earnings through the development and sale of prescription medications and vaccines. Additionally, Meiji engages in strategic partnerships with healthcare providers and distributors, enhancing its market reach and sales capabilities. The company also invests in research and development to innovate and expand its product offerings, thereby attracting a broader customer base and increasing its revenue potential.

Meiji Holdings Co Financial Statement Overview

Summary

Revenue growth is solid (TTM +12.3%) and leverage is low (debt-to-equity ~0.13), but profitability is modest (net margin ~3.9%) with margin compression versus prior years. The biggest concern is cash quality: free cash flow is negative (about -30.8B) and cash conversion is weak (operating cash flow ~0.16x net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 12.3%, showing solid top-line momentum versus the recent annual trend. Profitability is steady but not strong for the group: TTM gross margin is ~29.5% and net margin is ~3.9%, and margins have generally compressed versus earlier years (notably weaker net profitability than FY2022–FY2023). EBIT and EBITDA margins remain positive and stable, but the overall earnings profile looks more moderate and less consistent than the revenue trend.

Balance Sheet

The balance sheet looks conservative with low leverage: TTM debt-to-equity is ~0.13 and equity is sizable relative to assets. Returns are positive but mid-range, with TTM return on equity around 6.1% (below stronger years like FY2022–FY2023). Overall financial risk appears contained, though profitability on the equity base has softened.

Cash Flow

Cash generation is the weak spot. TTM operating cash flow is positive, but free cash flow is negative (about -30.8B), a sharp reversal from the prior annual periods that were generally positive. Cash conversion also looks thin in TTM, with operating cash flow covering only ~0.16 of net income and free cash flow near break-even versus net income (~0.04), suggesting elevated cash outflows (e.g., investment or working-capital needs) and less earnings-to-cash reliability recently.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.16T	1.15T	1.11T	1.06T	1.01T	1.19T
Gross Profit	350.80B	339.10B	336.88B	306.80B	323.25B	449.63B
EBITDA	136.69B	137.84B	143.20B	149.46B	179.07B	152.23B
Net Income	45.99B	50.80B	50.67B	69.42B	87.50B	65.66B
Balance Sheet
Total Assets	1.31T	1.18T	1.21T	1.14T	1.12T	1.07T
Cash, Cash Equivalents and Short-Term Investments	78.88B	78.19B	106.86B	63.52B	67.41B	40.33B
Total Debt	142.12B	47.80B	49.93B	64.37B	81.27B	101.78B
Total Liabilities	496.38B	392.69B	417.50B	384.91B	404.44B	407.64B
Stockholders Equity	763.64B	748.29B	746.53B	711.91B	673.34B	621.43B
Cash Flow
Free Cash Flow	-30.81B	16.18B	54.54B	12.84B	34.36B	55.78B
Operating Cash Flow	49.32B	68.98B	107.98B	85.01B	127.53B	123.68B
Investing Cash Flow	-94.39B	-40.64B	-24.60B	-36.79B	-27.61B	-93.11B
Financing Cash Flow	20.87B	-61.67B	-43.77B	-54.73B	-77.00B	-28.29B

Meiji Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3033.00
• 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:2269, the sentiment is Positive. The current price of 3033 is below the 20-day moving average (MA) of 3824.00, below the 50-day MA of 3658.32, and below the 200-day MA of 3243.68, indicating a bullish trend. The MACD of 77.33 indicates Negative momentum. The RSI at 77.22 is Negative, neither overbought nor oversold. The STOCH value of 95.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2269.

Meiji Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2809	71 Outperform	¥631.36B	20.59	9.28%	1.30%	5.50%	27.32%
2270	68 Neutral	¥237.72B	9.43	―	2.47%	0.32%	-20.60%
2206	65 Neutral	¥390.00B	76.00	2.66%	1.64%	8.40%	-23.50%
2264	65 Neutral	¥418.77B	30.33	―	2.42%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2269	62 Neutral	¥1.07T	23.00	5.97%	2.96%	2.79%	-6.46%
2802	61 Neutral	¥4.57T	59.02	9.46%	1.32%	1.99%	-18.79%

Meiji Holdings Co Corporate Events

Meiji Holdings Corrects Supplementary Vaccine Sales Data Without Changing Core Financials

Meiji Holdings Co., Ltd. has announced partial amendments to the supplementary explanatory data accompanying its consolidated financial results for the fiscal year ended March 31, 2025, and for the first and second quarters of the fiscal year ending March 31, 2026. The corrections relate to the pharmaceutical segment’s sales by main products, including recalculated figures for human vaccine sales, year-on-year change, and full-year plan achievement rates, while confirming that the underlying numerical XBRL data remain unchanged.

The company revised previously disclosed figures for human vaccine sales for the first three quarters of fiscal 2025 from ¥30.1 billion to ¥30.0 billion, adjusting the associated year-on-year growth rate and full-year plan achievement rate slightly downward. By clarifying that the corrections are limited to the supplementary explanatory materials and do not affect the official XBRL financial data, Meiji aims to preserve data accuracy and transparency for investors and other stakeholders relying on its segment performance disclosures.

The most recent analyst rating on (JP:2269) stock is a Buy with a Yen4287.00 price target. To see the full list of analyst forecasts on Meiji Holdings Co stock, see the JP:2269 Stock Forecast page.

Meiji Holdings Lifts Profits, Maintains Outlook and Expands Asian Footprint

Meiji Holdings reported consolidated net sales of ¥882.3 billion for the first nine months of the fiscal year ending March 31, 2026, a modest 0.8% increase year on year, while operating profit rose 5.4% and ordinary profit climbed 11.3%. Profit attributable to owners of parent fell 11.0% to ¥38.8 billion, partly reflecting share-related factors, even as comprehensive income improved and total assets and shareholders’ equity increased.

The company maintained its full-year forecast, expecting net sales of ¥1.177 trillion and a 6.3% rise in profit attributable to owners of parent to ¥54.0 billion, alongside a planned dividend increase to an annual ¥105 per share. Meiji also expanded its consolidation scope to include Meiji Food Asia Pacific and Meiji Pharma Asia, underscoring a strategic push in Asia that could support long-term growth and strengthen its competitive position in both food and pharmaceutical segments.

The most recent analyst rating on (JP:2269) stock is a Buy with a Yen4287.00 price target. To see the full list of analyst forecasts on Meiji Holdings Co stock, see the JP:2269 Stock Forecast page.

Meiji Holdings Reports Limited Financial Impact from Voluntary Retirement Program at Meiji Co.

Meiji Holdings announced the results of a voluntary Next Career Special Support Program implemented by its core subsidiary Meiji Co., Ltd. for long-serving employees aged 50 and above, offering special additional retirement allowances and reemployment support. A total of 44 employees applied to leave as of March 31, 2026, with the program costing approximately JPY 1.1 billion, which will be recorded as an extraordinary loss in the fiscal year ending March 2026; the company stated that the financial impact is minor and it will not revise its earnings forecast, suggesting a controlled approach to workforce restructuring with limited effect on overall performance.

The most recent analyst rating on (JP:2269) stock is a Buy with a Yen3721.00 price target. To see the full list of analyst forecasts on Meiji Holdings Co stock, see the JP:2269 Stock Forecast page.

Meiji Holdings Enhances Shareholder Benefit Program

Meiji Holdings Co., Ltd. has announced an enhancement to its Shareholder Benefit Program, aiming to deepen shareholder engagement and appreciation. The amendment introduces a Long-term Holding Appreciation BOX for shareholders holding shares for more than three years, in addition to existing benefits, thereby encouraging long-term investment and support.

The most recent analyst rating on (JP:2269) stock is a Hold with a Yen3564.00 price target. To see the full list of analyst forecasts on Meiji Holdings Co stock, see the JP:2269 Stock Forecast page.

Meiji Holdings Enhances Pharmaceutical Operations with Strategic Asset Transfer

Meiji Holdings Co., Ltd. announced a strategic move to transfer the common stock of its subsidiary, KM Biologics Co., Ltd., to Meiji Seika Pharma Co., Ltd. through an absorption-type company split. This decision is part of the company’s structural reforms to strengthen its pharmaceutical business foundation and enhance integrated operations. By aligning management policies and business strategies, Meiji aims to accelerate its global expansion and develop innovative pharmaceuticals, leveraging the combined expertise of its subsidiaries in infectious diseases. This move is expected to promote faster decision-making and create a more efficient supply system, reinforcing Meiji’s commitment to sustainable growth and social responsibility.

The most recent analyst rating on (JP:2269) stock is a Hold with a Yen3208.00 price target. To see the full list of analyst forecasts on Meiji Holdings Co stock, see the JP:2269 Stock Forecast page.