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

• Market Cap: ¥220.16B
• Dividend Yield: 2.45%
• Average Volume (3M): 167.82K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.28
• 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: ¥3,400.00 ▲(4.29% 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

Stable Financial Structure

A strong balance sheet with a manageable debt-to-equity ratio indicates financial stability, allowing the company to withstand economic fluctuations.

Operational Efficiency

Resilient EBIT and EBITDA margins suggest effective cost management and operational efficiency, which can support profitability even in challenging times.

Conservative Leverage

A conservative leverage approach with a low debt-to-equity ratio enhances financial flexibility and reduces risk, supporting long-term sustainability.

Negative Factors

Negative Cash Flow

Negative free cash flow indicates cash generation issues, which can limit the company's ability to invest in growth and manage debt obligations.

Declining Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive positioning, potentially impacting future earnings and market share.

Low Cash Generation

Limited cash generation relative to profits can strain liquidity and hinder the company's ability to fund operations and strategic initiatives.

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 stable financial health with a strong balance sheet and impressive cash flow generation. However, challenges in revenue growth and profitability margins need addressing for improved financial performance.

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	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: 3260.00
• 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:2270, the sentiment is Positive. The current price of 3260 is above the 20-day moving average (MA) of 3083.30, above the 50-day MA of 2975.48, and above the 200-day MA of 2803.71, indicating a bullish trend. The MACD of 65.45 indicates Negative momentum. The RSI at 70.27 is Negative, neither overbought nor oversold. The STOCH value of 91.49 is Negative, 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	¥939.59B	20.41	5.97%	3.00%	2.79%	-6.46%
2270	69 Neutral	¥220.16B	13.29	―	2.45%	0.32%	-20.60%
2229	69 Neutral	¥382.65B	21.74	8.27%	1.96%	5.82%	-13.40%
2811	66 Neutral	¥232.86B	19.79	―	2.11%	3.69%	-50.13%
2264	65 Neutral	¥333.62B	29.84	―	2.39%	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 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.

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.

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.

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.

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.

MEGMILK SNOW BRAND Completes September Share Repurchase

MEGMILK SNOW BRAND Co., Ltd. announced the completion of a share repurchase program in September 2025, acquiring 251,900 shares for approximately JPY 753.6 million. This move is part of a broader strategy to repurchase up to 10 million shares by March 2026, reflecting the company’s commitment to enhancing shareholder value and optimizing its capital structure.