MEGMILK SNOW BRAND Co., Ltd. (2270) AI Stock Analysis

• Market Cap: ¥226.58B
• Dividend Yield: 2.47%
• Average Volume (3M): 167.82K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.27
• Revenue Growth: 0.32%
• EPS Growth: -20.60%
• Country: JP
• Employees: 5,731
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 38.87
• Shares Outstanding: 70,751,854
• 10 Day Avg. Volume: 230,700
• 30 Day Avg. Volume: 167,820
• PEG Ratio: -0.44
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 1.04K
• 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: 69 Neutral
• Price Target: ¥3,674.00 ▲(13.57% Upside)

MEGMILK SNOW BRAND Co., Ltd. has a stable financial structure and positive technical indicators, contributing to a solid overall score. The fair valuation and attractive dividend yield further support the stock's appeal. However, challenges in revenue growth and cash flow generation pose risks to future financial flexibility.

Positive Factors

Conservative leverage / strong capital structure

Low leverage and a healthy equity ratio provide a durable financial buffer against commodity-driven earnings swings common in dairy. This conservative capital structure supports capacity to fund capex or absorb shocks without urgent refinancing, preserving long-term strategic optionality.

Diversified business model and distribution

Multiple channels (retail, B2B, functional nutrition) and branded product breadth reduce concentration risk and smooth demand cycles. Manufacturing scale and established distributor relationships underpin stable volumes and provide a platform for product innovation and margin improvement over time.

Resilient operational margins

A consistent gross margin and resilient operating margins indicate efficient production and cost management. Sustained operational profitability helps absorb input cost volatility in dairy markets and supports reinvestment and product development, strengthening long-term competitiveness.

Negative Factors

Negative free cash flow

Negative free cash flow erodes internal funding for capex, working capital and dividends if persistent. Over months this limits financial flexibility, may necessitate external financing or cuts to investment, and constrains the firm's ability to pursue strategic initiatives or withstand shocks.

Weak top-line trend and low net margin

Declining sales combined with a low net margin compress long-term earnings power and reduce retained profits for reinvestment. If structural, this limits capacity to scale higher-margin products and undermines ability to improve returns without clear revenue recovery or margin expansion initiatives.

Poor cash conversion of profits

Low conversion of accounting profits into operating cash undermines earnings quality and increases reliance on non-operational funding. Over time this raises liquidity risk, reduces capacity to service obligations or invest, and makes the company more vulnerable to input cost shocks or demand weakness.

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

Company Description

MEGMILK SNOW BRAND Co.,Ltd. manufactures and sells cow's milk, milk products, and other food products in Japan and internationally. It offers dairy products, including butter, margarine, cheese, condensed and skim milk, etc.; beverages and desserts, such as milk and milk beverages, yogurts, fruit and vegetable juices, soft drinks, desserts, etc.; feed stuffs and seeds, landscaping, etc.; and nutrition products, including infant formula, functional foods, etc. The company was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MEGMILK SNOW BRAND generates revenue primarily through the sale of its dairy products across various market segments, including retail, food service, and industrial channels. Key revenue streams include direct sales of milk, cheese, yogurt, and ice cream to consumers and businesses. The company also invests in product development and marketing to differentiate its offerings and capture market share. Significant partnerships with retailers and food service providers enhance distribution capabilities and brand visibility, contributing to consistent sales growth. Additionally, MEGMILK SNOW BRAND may explore export opportunities and collaborations with international partners to expand its market reach and diversify revenue sources.

MEGMILK SNOW BRAND Co., Ltd. Financial Statement Overview

Summary

MEGMILK SNOW BRAND Co., Ltd. shows a stable financial structure with operational efficiency. However, challenges in revenue growth and negative cash flow impact its financial flexibility. The balance sheet remains strong, providing a buffer against potential risks.

Income Statement

MEGMILK SNOW BRAND Co., Ltd. shows a mixed performance in its income statement. The company has a stable gross profit margin around 16%, but its net profit margin is relatively low at 2.86% for TTM. The revenue growth rate has been negative recently, indicating a decline in sales. However, the EBIT and EBITDA margins have shown some resilience, suggesting operational efficiency.

Balance Sheet

The balance sheet of MEGMILK SNOW BRAND Co., Ltd. reflects a moderate financial position. The debt-to-equity ratio is manageable at 0.24, indicating a conservative leverage approach. Return on equity is modest at 7.44% for TTM, showing decent profitability relative to equity. The equity ratio is healthy, suggesting a stable capital structure.

Cash Flow

The cash flow statement reveals some challenges for MEGMILK SNOW BRAND Co., Ltd. The free cash flow has turned negative in TTM, and the free cash flow growth rate is significantly negative, indicating cash flow issues. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	613.39B	615.82B	605.42B	584.31B	558.40B	615.19B
Gross Profit	101.30B	101.50B	98.28B	87.19B	89.44B	142.61B
EBITDA	38.34B	36.31B	45.96B	30.65B	35.12B	35.79B
Net Income	16.05B	13.90B	19.43B	9.13B	12.07B	14.91B
Balance Sheet
Total Assets	422.19B	431.07B	431.22B	410.13B	401.89B	398.65B
Cash, Cash Equivalents and Short-Term Investments	6.68B	21.37B	29.00B	20.35B	19.99B	21.84B
Total Debt	55.59B	56.52B	58.87B	69.88B	72.23B	79.37B
Total Liabilities	188.33B	183.03B	195.92B	194.23B	192.36B	200.40B
Stockholders Equity	230.44B	244.68B	232.09B	212.88B	206.78B	195.21B
Cash Flow
Free Cash Flow	-3.46B	167.00M	11.88B	7.04B	9.45B	-4.55B
Operating Cash Flow	20.68B	21.10B	30.46B	26.81B	29.42B	26.57B
Investing Cash Flow	-14.70B	-18.51B	-6.31B	-19.62B	-20.21B	-27.08B
Financing Cash Flow	-21.25B	-10.38B	-15.64B	-7.29B	-11.26B	6.77B

MEGMILK SNOW BRAND Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3235.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3235 is below the 20-day moving average (MA) of 3372.00, above the 50-day MA of 3223.00, and above the 200-day MA of 2916.41, indicating a neutral trend. The MACD of 49.98 indicates Positive momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 19.55 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2269	74 Outperform	¥995.07B	21.62	5.97%	2.96%	2.79%	-6.46%
2270	69 Neutral	¥226.58B	13.68	―	2.47%	0.32%	-20.60%
2229	69 Neutral	¥389.43B	22.13	8.27%	1.95%	5.82%	-13.40%
2811	66 Neutral	¥235.27B	20.00	―	2.11%	3.69%	-50.13%
2264	65 Neutral	¥353.04B	31.58	―	2.42%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

MEGMILK SNOW BRAND Co., Ltd. Corporate Events

Megmilk Snow Brand Reports Progress on Large-Scale Share Buyback Program

MEGMILK SNOW BRAND Co., Ltd. has disclosed the results of its share repurchase activity for December 2025, buying back 249,500 shares of common stock on the Tokyo Stock Exchange for a total of approximately ¥776 million under its previously approved buyback program. This transaction forms part of a larger capital allocation initiative authorized in May 2025 that allows repurchases of up to 10 million shares or ¥20 billion through March 13, 2026, under which the company had cumulatively acquired 6,338,100 shares for about ¥18.0 billion by the end of December 2025, signaling continued efforts to enhance shareholder value and adjust its capital structure through treasury share acquisition.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen3400.00 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 November Share Repurchase Results

MEGMILK SNOW BRAND Co., Ltd. announced the results of its share repurchase program for November 2025, acquiring 238,600 shares at a total cost of JPY 703,465,500. This move is part of a larger 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 Yen3168.00 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 Asset Transfer for Strategic Efficiency

MEGMILK SNOW BRAND Co., Ltd. has announced the transfer of its Yotsuya Head Office Building and related assets as part of a strategic move to improve asset efficiency in line with its Next Design 2030 business plan. This transfer is expected to generate an extraordinary income of approximately 17.5 billion yen, which will be recorded in the company’s financial results for the quarter ending June 30, 2026, although it will not impact the fiscal year ending March 2026.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen3168.00 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 Revises FY2025 Earnings Forecast Amid Sales Volume Decline

MEGMILK SNOW BRAND Co., Ltd. has revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, due to a larger than expected decrease in sales volume following price revisions aimed at offsetting rising raw material and logistics costs. Despite the anticipated shortfall in net sales, the company maintains its profit forecasts by implementing cost management strategies and benefiting from price adjustments, while the dividend forecast remains unchanged.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen3168.00 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 Decline in Income and Announces Share Repurchase

MEGMILK SNOW BRAND Co., Ltd. reported a significant decline in its comprehensive income for the first six months of the fiscal year ending March 31, 2026, with a 42% decrease compared to the same period the previous year. The company has revised its earnings forecasts and announced a share repurchase plan, which could impact its earnings per share and overall financial performance.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen3168.00 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 October 2025 Share Repurchase Results

MEGMILK SNOW BRAND Co., Ltd. announced the results of its share repurchase program conducted in October 2025, where it repurchased 332,900 shares for approximately JPY 962.9 million. This repurchase is part of a larger initiative announced in May 2025, aiming to buy back up to 10 million shares by March 2026, which reflects the company’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:2270) stock is a Hold with a Yen3168.00 price target. To see the full list of analyst forecasts on MEGMILK SNOW BRAND Co., Ltd. stock, see the JP:2270 Stock Forecast page.