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

• Market Cap: ¥204.63B
• Dividend Yield: 2.67%
• Average Volume (3M): 220.64K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.28
• Revenue Growth: 1.33%
• EPS Growth: -15.17%
• Country: JP
• Employees: 5,731
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 137.32
• Shares Outstanding: 70,751,854
• 10 Day Avg. Volume: 148,600
• 30 Day Avg. Volume: 220,636
• 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: ¥3,298.00
• Price Target Upside: 10.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥3,298.00 ▲(10.04% 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. 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	615.78B	615.82B	605.42B	584.31B	558.40B	615.19B
Gross Profit	100.56B	101.50B	98.28B	87.19B	89.44B	142.61B
EBITDA	41.03B	36.31B	45.96B	30.65B	35.12B	35.79B
Net Income	17.61B	13.90B	19.43B	9.13B	12.07B	14.91B
Balance Sheet
Total Assets	418.96B	431.07B	431.22B	410.13B	401.89B	398.65B
Cash, Cash Equivalents and Short-Term Investments	9.12B	21.37B	29.00B	20.35B	19.99B	21.84B
Total Debt	55.39B	55.86B	58.87B	69.88B	72.23B	79.37B
Total Liabilities	185.81B	183.03B	195.92B	194.23B	192.36B	200.40B
Stockholders Equity	229.79B	244.68B	232.09B	212.88B	206.78B	195.21B
Cash Flow
Free Cash Flow	3.70B	167.00M	11.88B	7.04B	9.45B	-4.55B
Operating Cash Flow	25.15B	21.10B	30.46B	26.81B	29.42B	26.57B
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	-11.26B	6.77B

MEGMILK SNOW BRAND Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2997.00
• 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:2270, the sentiment is Positive. The current price of 2997 is above the 20-day moving average (MA) of 2981.40, above the 50-day MA of 2890.94, and above the 200-day MA of 2680.98, indicating a bullish trend. The MACD of 43.85 indicates Positive momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2270	76 Outperform	¥204.63B	11.43	―	2.67%	1.33%	-15.17%
2229	73 Outperform	376.39B	21.29	10.17%	1.99%	6.38%	-16.25%
2811	70 Outperform	263.86B	20.47	7.83%	1.93%	11.08%	-46.09%
2269	70 Outperform	859.11B	18.08	6.79%	3.20%	2.45%	-9.06%
2264	63 Neutral	313.30B	42.06	2.05%	2.54%	2.97%	-46.46%
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 Completes Share Repurchase in July 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

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

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

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

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

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

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

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

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

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

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.