Meiji Holdings Co (2269) AI Stock Analysis

• Market Cap: ¥995.07B
• Dividend Yield: 2.96%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.01
• Revenue Growth: 2.79%
• EPS Growth: -6.46%
• Country: JP
• Employees: 17,270
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 42.00
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥4,069.00 ▲(34.16% Upside)

The stock's overall score is driven by strong financial performance and positive technical indicators. The valuation is reasonable, but not exceptional. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Conservative capital structure

A very low debt-to-equity ratio and strong equity base indicate conservative leverage and high solvency. This provides durable financial flexibility for capital allocation, supports resilience through industry cycles, and lowers refinancing and interest-rate risk over months.

Diversified business model

Operating across consumer food and prescription pharmaceuticals creates structural revenue diversification. Staples demand and branded foods provide steady cash flow while pharma products and vaccines offer higher-margin, R&D-driven upside, reducing single-market dependency.

Stable gross and healthy operating margins

Sustained ~29% gross margin and healthy operating margins reflect efficient production, pricing power in branded products, and operational scale. These margin characteristics support long-term profitability resilience against moderate input-cost fluctuations.

Negative Factors

Collapse in free cash flow growth

A near-total collapse in FCF growth materially reduces available internal funds for capex, dividends, debt reduction, or M&A. This weakens long-term financial optionality and could force reliance on external financing or restructure of investment priorities over the coming quarters.

Weak cash conversion of earnings

Low OCF-to-net-income and FCF-to-net-income ratios signal poor conversion of accounting profits into cash, possibly from working-capital build or non-cash items. Persistent weak cash conversion undermines sustainable dividend funding and reinvestment capacity.

Earnings pressure and declining margins

A declining net margin combined with negative EPS growth suggests rising cost pressures or margin erosion in core businesses. If persistent, this reduces retained earnings and ROE improvement prospects, constraining long-term shareholder return and reinvestment.

Meiji Holdings Co Business Overview & Revenue Model

Company Description

Meiji Holdings Co., Ltd. is a prominent Japanese company engaged in the food and pharmaceuticals sectors. Established in 1917, the company operates through two main divisions: the Food Division, which produces dairy products, confectionery, and processed foods, and the Pharmaceuticals Division, which focuses on prescription drugs, vaccines, and over-the-counter medications. Meiji is recognized for its commitment to quality and innovation, aiming to enhance the health and well-being of consumers through its diverse range of products.

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

Meiji Holdings Co shows strong revenue growth and operational efficiency with a robust balance sheet. However, the significant decline in free cash flow growth highlights potential cash management issues.

Income Statement

Meiji Holdings Co has shown consistent revenue growth with a TTM growth rate of 0.96%. The gross profit margin is stable at around 29.3%, indicating efficient production processes. However, the net profit margin has slightly decreased to 4.09% in the TTM, reflecting potential cost pressures or increased expenses. The EBIT and EBITDA margins remain healthy, suggesting strong operational performance.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.12 in the TTM, indicating conservative leverage. The return on equity is moderate at 6.33%, suggesting reasonable profitability for shareholders. The equity ratio is strong, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -92.91% in the TTM. The operating cash flow to net income ratio is 0.24, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.37, suggesting some constraints in converting net income to free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.16T	1.15T	1.11T	1.06T	1.01T	1.19T
Gross Profit	342.53B	339.10B	336.88B	306.80B	323.25B	449.63B
EBITDA	131.63B	137.84B	143.20B	149.46B	179.07B	152.23B
Net Income	45.41B	50.80B	50.67B	69.42B	87.50B	65.66B
Balance Sheet
Total Assets	1.23T	1.18T	1.21T	1.14T	1.12T	1.07T
Cash, Cash Equivalents and Short-Term Investments	69.90B	78.19B	106.86B	63.52B	67.41B	40.33B
Total Debt	100.42B	47.80B	49.93B	64.37B	81.27B	101.78B
Total Liabilities	440.05B	392.69B	417.50B	384.91B	404.44B	407.64B
Stockholders Equity	749.01B	748.29B	746.53B	711.91B	673.34B	621.43B
Cash Flow
Free Cash Flow	2.21B	16.18B	54.54B	12.84B	34.36B	55.78B
Operating Cash Flow	55.76B	68.98B	107.98B	85.01B	127.53B	123.68B
Investing Cash Flow	-67.39B	-40.64B	-24.60B	-36.79B	-27.61B	-93.11B
Financing Cash Flow	-6.66B	-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: Positive
• RSI: Neutral
• STOCH: Neutral

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 3594.80, below the 50-day MA of 3454.16, and below the 200-day MA of 3204.70, indicating a bullish trend. The MACD of 60.36 indicates Positive momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 35.68 is Neutral, 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
2897	77 Outperform	¥923.16B	18.89	9.77%	2.41%	1.46%	-2.17%
2875	76 Outperform	¥1.13T	17.04	13.26%	1.82%	3.64%	5.31%
2269	74 Outperform	¥995.07B	21.62	5.97%	2.96%	2.79%	-6.46%
2871	72 Outperform	¥484.68B	18.52	9.86%	2.58%	1.08%	2.71%
2282	70 Outperform	¥685.60B	21.67	6.04%	2.04%	5.55%	27.03%
2002	70 Outperform	¥557.18B	20.98	―	3.15%	-0.88%	-25.64%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Meiji Holdings Co Corporate Events

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.

Meiji Holdings Reports Modest Sales Growth Amid Profit Decline

Meiji Holdings Co. reported a slight increase in net sales for the first half of the fiscal year ending March 2026, despite a decline in operating and ordinary profits. The company has added Meiji Food Asia Pacific Pte. Ltd. to its scope of consolidation, indicating a strategic expansion in the Asia Pacific market. The forecast for the full fiscal year shows an expected rise in net sales and profits, suggesting a positive outlook for the company’s future performance.

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.