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MEGMILK SNOW BRAND Co., Ltd. (JP:2270)
:2270
Japanese Market
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MEGMILK SNOW BRAND Co., Ltd. (2270) AI Stock Analysis

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JP:2270

MEGMILK SNOW BRAND Co., Ltd.

(2270)

Rating:76Outperform
Price Target:
¥3,298.00
▲(11.19% Upside)
MEGMILK SNOW BRAND Co., Ltd. demonstrates strong financial stability and attractive valuation metrics, with positive technical indicators supporting a favorable outlook. However, addressing revenue growth and profitability challenges is crucial for further improvement.

MEGMILK SNOW BRAND Co., Ltd. (2270) vs. iShares MSCI Japan ETF (EWJ)

MEGMILK SNOW BRAND Co., Ltd. Business Overview & Revenue Model

Company DescriptionMEGMILK SNOW BRAND Co., Ltd. (2270) is a leading dairy company based in Japan, known for its extensive range of milk and dairy products. The company operates in the food and beverage sector, producing products such as milk, cheese, butter, yogurt, and other dairy derivatives. MEGMILK SNOW BRAND is committed to delivering high-quality, nutritious products to its consumers, leveraging its advanced production technologies and a robust distribution network to maintain its position in the competitive dairy industry.
How the Company Makes MoneyMEGMILK SNOW BRAND Co., Ltd. generates revenue primarily through the production and sale of dairy products. The company's key revenue streams include the sale of milk, cheese, butter, and yogurt, which are distributed through supermarkets, convenience stores, and other retail channels across Japan and international markets. The company also engages in the production of functional dietary products and infant formula, contributing to its revenue base. Additionally, MEGMILK SNOW BRAND benefits from strategic partnerships and collaborations that enhance its market reach and product innovation. The company's focus on quality and sustainability, along with its strong brand reputation, plays a significant role in driving sales and maintaining a steady income stream.

MEGMILK SNOW BRAND Co., Ltd. Financial Statement Overview

Summary
The company shows stable financial health with a strong balance sheet and impressive cash flow generation. However, challenges in revenue growth and profitability margins need addressing.
Income Statement
65
Positive
The company's income statement shows a stable gross profit margin around 16%, with a slight decline in revenue growth rate to -0.7% in the TTM period. Net profit margin is modest at 2.26%, indicating some profitability challenges. EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.
Balance Sheet
72
Positive
The balance sheet reflects a healthy debt-to-equity ratio of 0.23, indicating manageable leverage. Return on equity is moderate at 5.84%, showing decent profitability from shareholders' equity. The equity ratio is strong, suggesting a solid financial foundation with a good portion of assets financed by equity.
Cash Flow
78
Positive
Cash flow analysis reveals a significant improvement in free cash flow growth, up by 2117% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is stable, and free cash flow to net income ratio is low, suggesting potential reinvestment or debt servicing needs.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue615.78B615.82B605.42B584.31B558.40B615.19B
Gross Profit100.56B101.50B98.28B87.19B89.44B142.61B
EBITDA41.03B36.31B45.96B30.65B35.12B35.79B
Net Income17.61B13.90B19.43B9.13B12.07B14.91B
Balance Sheet
Total Assets418.96B431.07B431.22B410.13B401.89B398.65B
Cash, Cash Equivalents and Short-Term Investments9.12B21.37B29.00B20.35B19.99B21.84B
Total Debt55.39B55.86B58.87B69.88B72.23B79.37B
Total Liabilities185.81B183.03B195.92B194.23B192.36B200.40B
Stockholders Equity229.79B244.68B232.09B212.88B206.78B195.21B
Cash Flow
Free Cash Flow3.70B167.00M11.88B7.04B9.45B-4.55B
Operating Cash Flow25.15B21.10B30.46B26.81B29.42B26.57B
Investing Cash Flow-12.07B-18.51B-6.31B-19.62B-20.21B-27.08B
Financing Cash Flow-20.13B-10.38B-15.64B-7.29B-11.26B6.77B

MEGMILK SNOW BRAND Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2966.00
Price Trends
50DMA
2817.72
Positive
100DMA
2753.21
Positive
200DMA
2652.97
Positive
Market Momentum
MACD
31.24
Negative
RSI
60.86
Neutral
STOCH
60.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2270, the sentiment is Positive. The current price of 2966 is above the 20-day moving average (MA) of 2867.25, above the 50-day MA of 2817.72, and above the 200-day MA of 2652.97, indicating a bullish trend. The MACD of 31.24 indicates Negative momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 60.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2270.

MEGMILK SNOW BRAND Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥200.31B11.02
2.70%1.33%-15.17%
63
Neutral
$20.49B14.78-2.88%3.11%1.86%-5.76%
$2.42B19.848.89%1.73%
$5.90B18.376.40%3.42%
70
Outperform
¥262.88B20.53
1.93%11.08%-46.09%
63
Neutral
¥306.12B41.10
2.54%2.97%-46.46%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2270
MEGMILK SNOW BRAND Co., Ltd.
2,966.00
356.04
13.64%
CBCFF
CALBEE
18.33
-5.17
-22.00%
MEJHF
Meiji Holdings Co
21.26
-3.77
-15.06%
JP:2264
Morinaga Milk Industry Co., Ltd.
3,544.00
187.73
5.59%
JP:2811
Kagome Co., Ltd.
2,942.50
-166.78
-5.36%

MEGMILK SNOW BRAND Co., Ltd. Corporate Events

MEGMILK SNOW BRAND Completes Share Repurchase in July 2025
Aug 4, 2025

MEGMILK SNOW BRAND Co., Ltd. announced the completion of a share repurchase program in July 2025, acquiring 449,300 shares for JPY 1,248,150,100. This move is part of a larger buyback plan to repurchase up to 10,000,000 shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Completes Share Repurchase in June 2025
Jul 1, 2025

MEGMILK SNOW BRAND Co., Ltd. announced the completion of a share repurchase program in June 2025, acquiring 347,500 shares for approximately JPY 947.87 million. This move is part of a broader strategy to repurchase up to 10 million shares by March 2026, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Announces Share Repurchase Results
Jun 2, 2025

MEGMILK SNOW BRAND Co., Ltd. announced the repurchase of 4,064,700 of its own shares, amounting to approximately JPY 11.49 billion, during May 2025. This strategic move, part of a broader plan to repurchase up to 10 million shares by March 2026, aims to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Initiates Strategic Share Buyback
May 15, 2025

MEGMILK SNOW BRAND Co., Ltd. has announced the repurchase of 3,785,400 of its own shares, amounting to JPY 10,712,682,000, as part of a broader strategy to buy back up to 10 million shares. This move is aimed at optimizing capital structure and potentially increasing shareholder value, with plans to cancel all repurchased shares under the program.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Announces Strategic Share Repurchase Plan
May 14, 2025

MEGMILK SNOW BRAND Co., Ltd. has announced a strategic move to repurchase up to 4,240,200 of its own shares, representing 6.3% of its total shares in issue, through the Tokyo Stock Exchange Trading Network. This decision, with a maximum repurchase amount of JPY 12 billion, is part of a broader initiative to enhance shareholder value and optimize capital structure, with further repurchases planned through March 2026.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Announces Extraordinary Profit from Securities Sale
May 14, 2025

MEGMILK SNOW BRAND Co., Ltd. announced an expected extraordinary profit from the sale of investment securities in the fiscal year ending March 2026, amounting to 24,500 million yen. This strategic move aims to improve asset efficiency and has been incorporated into the financial forecast for the fiscal year, potentially impacting the company’s financial performance and market positioning.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Announces Strategic Share Repurchase Plan
May 14, 2025

MEGMILK SNOW BRAND Co., Ltd. has announced a share repurchase plan as part of its ‘Next Design 2030’ management strategy to enhance capital efficiency. The company plans to buy back up to 10 million shares, representing 14.8% of its outstanding shares, with a total repurchase amount of up to JPY 20 billion, indicating a strategic move to optimize its capital structure and support growth investments.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Updates Shareholder Return Policy
May 14, 2025

MEGMILK SNOW BRAND Co., Ltd. announced changes to its shareholder return policy, introducing a minimum dividend of ¥100 per share and plans for flexible share buybacks to improve capital efficiency. These changes, part of the Next Design 2030 management plan, aim to strengthen shareholder returns while supporting growth investments, with implementation set for fiscal year 2025.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Expands Cheese Production with Major Investment
May 14, 2025

MEGMILK SNOW BRAND Co., Ltd. has announced a significant capital investment to expand its cheese production capabilities as part of its ‘Next Design 2030’ management plan. This initiative includes the introduction of new technologies to produce high-value-added cheese and the expansion of powder milk facility capacity, aiming to improve production efficiency and reduce environmental impact. The investments are expected to address the fat and solid-not-fat imbalance in the domestic milk market and contribute to the company’s growth and sustainability goals. The impact on the current fiscal year’s consolidated results is expected to be minor.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Reports Decrease in Comprehensive Income for FY 2025
May 14, 2025

MEGMILK SNOW BRAND Co., Ltd. reported a decrease in comprehensive income by 21.3% for the fiscal year ended March 31, 2025, compared to the previous year. Despite this decline, the company maintained a stable equity position and announced a dividend payout, indicating a commitment to shareholder returns.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

MEGMILK SNOW BRAND Unveils ‘Next Design 2030’ Plan
May 14, 2025

MEGMILK SNOW BRAND Co., Ltd. has announced its ‘Next Design 2030’ management plan, which outlines strategies to transform its business operations and increase the value of the dairy industry by fiscal year 2030. The plan includes enhancing overseas operations, expanding the presence of milk and milk beverages, and developing regenerative dairy farming. The company also aims to improve shareholder returns through dividends and flexible acquisition of treasury stock, targeting a 9% adjusted ROE and a 6% ROIC by 2030.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.

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.Date of analysis: Aug 29, 2025