Meiko Network Japan Co., Ltd. (4668) AI Stock Analysis

• Market Cap: ¥18.01B
• Dividend Yield: 3.81%
• Average Volume (3M): 51.46K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.39
• Revenue Growth: 9.96%
• EPS Growth: 252.72%
• Country: JP
• Employees: 1,197
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 13.31
• Shares Outstanding: 27,803,600
• 10 Day Avg. Volume: 66,020
• 30 Day Avg. Volume: 51,460
• PEG Ratio: 0.04
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 14.24
• 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): 39.6
• Revenue Forecast (FY): ¥25.60B

• Rating: 78 Outperform
• Price Target: ¥820.00 ▲(14.05% Upside)
• Action: Upgraded Date: 01/04/26
• Date: Action: Upgraded 01/04/26

The score is driven primarily by strong financial resilience (very low leverage) and improving profitability, supported by attractive valuation (low P/E and solid dividend yield). Technicals are only moderately supportive, with mixed moving averages and signs of short-term overextension.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Meiko's educational services, suggesting a solid market position and potential for future expansion.

Financial Stability

A strong balance sheet with minimal leverage enhances financial stability, providing flexibility for strategic investments and weathering economic fluctuations.

Cash Flow Management

Improved cash flow management reflects efficient operations and enhances the company's ability to reinvest in growth opportunities and return value to shareholders.

Negative Factors

Profitability Challenges

Declining net profit margins suggest challenges in cost management or pricing power, which could impact long-term profitability and shareholder returns.

Return on Equity

A declining return on equity indicates less efficient use of shareholder capital, potentially affecting investor confidence and the company's ability to attract investment.

Free Cash Flow Conversion

Challenges in converting earnings into free cash flow may limit the company's ability to fund growth initiatives and distribute dividends, impacting long-term financial health.

Meiko Network Japan Co., Ltd. Business Overview & Revenue Model

Company Description

Meiko Network Japan Co., Ltd. provides education services in Japan. The company operates individual tutoring cram schools for children of various ages from elementary school to university entrance examinations preparation directly, as well as through its franchise system; soccer schools for preschool children, and elementary and junior high school students; and extended-hours cram schools for elementary school children performing the added function of after school care, as well as operates individual tutoring cram school for students with high academic performance seeking to enter high-ranking and difficult-to-enter schools. It also operates Japanese language school; individual English school instructed by bilinguals; all English after school service; and programming schools, as well as provides recruitment service for Japanese and service for employment of foreigners. In addition, the company produces and sells learning materials and publications. As of February 28, 2021, it operated 1,809 classrooms. The company was formerly known as Meiko Gijuku Corporation and changed its name to Meiko Network Japan Co., Ltd. in December 1986. Meiko Network Japan Co., Ltd. was founded in 1984 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Meiko Network Japan Co., Ltd. generates revenue mainly through tuition fees collected from students enrolled in its cram schools, Meiko Gijuku. The company's revenue model is based on offering personalized education services, where students pay for private or small-group tutoring sessions. Additionally, the company may earn income from franchise fees, as it licenses its education model and brand to franchisees, expanding its reach and presence across Japan. Partnerships with educational material providers and potential collaboration with schools for specialized programs also contribute to its earnings.

Meiko Network Japan Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth with a sharp acceleration in 2025, net margin improvement (to ~7% in 2025), and an exceptionally conservative balance sheet with minimal debt. Offsetting positives, operating profitability and cash-flow consistency have been volatile historically, keeping the score below the high-90s.

Income Statement

Revenue has grown steadily from 2021–2025 (annual growth accelerating to ~243% in 2025), and profitability rebounded strongly from the 2020 loss. Gross margin has been fairly stable in the mid-20% range, while net margin improved meaningfully (about 2.2% in 2024 to ~7.0% in 2025) and net income rose sharply. Offsetting this, operating profitability has been somewhat volatile over the cycle (notably weak/negative in 2020, and some margin compression versus 2021–2022 levels), indicating earnings can be sensitive to operating conditions.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is minimal and debt-to-equity remains near zero across all years, which materially reduces financial risk. Equity has expanded over time, and returns on equity improved strongly in 2025 (~13.7%) after a weaker 2024, signaling improved capital efficiency. The main weakness is that profitability (and therefore returns) has fluctuated meaningfully over the period, but leverage is so low that balance-sheet risk remains limited.

Cash Flow

Cash generation improved substantially in 2024–2025, with free cash flow turning solidly positive and reaching ~¥1.32B in 2025. Free cash flow covers a meaningful portion of net income (roughly 0.70–0.76 in 2024–2025), supporting earnings quality. However, operating cash flow relative to sales is modest (coverage ratio remains low), and cash flow has shown volatility historically (including negative free cash flow in 2020 and a decline in 2022), which tempers confidence in consistency.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	24.83B	22.58B	20.87B	19.67B	19.04B
Gross Profit	6.29B	5.26B	5.05B	5.05B	5.13B
EBITDA	1.95B	1.39B	1.40B	2.02B	1.99B
Net Income	1.73B	489.00M	809.00M	974.00M	1.14B
Balance Sheet
Total Assets	19.15B	16.24B	15.81B	15.44B	14.65B
Cash, Cash Equivalents and Short-Term Investments	9.33B	7.87B	8.57B	8.76B	8.93B
Total Debt	25.00M	26.00M	6.00M	11.00M	8.00M
Total Liabilities	6.57B	5.36B	4.61B	4.83B	4.63B
Stockholders Equity	12.58B	10.88B	11.20B	10.60B	10.02B
Cash Flow
Free Cash Flow	1.32B	520.00M	356.00M	285.00M	553.00M
Operating Cash Flow	1.73B	742.00M	608.00M	489.00M	742.00M
Investing Cash Flow	151.00M	-595.00M	-307.00M	150.00M	1.70B
Financing Cash Flow	-636.00M	-863.00M	-588.00M	-653.00M	-628.00M

Meiko Network Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 719.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4668, the sentiment is Positive. The current price of 719 is above the 20-day moving average (MA) of 706.95, above the 50-day MA of 705.93, and above the 200-day MA of 710.62, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 11.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4668.

Meiko Network Japan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4668	78 Outperform	¥18.01B	10.39	―	3.81%	9.96%	252.72%
9470	75 Outperform	¥46.44B	13.99	―	2.28%	7.30%	60.93%
2415	74 Outperform	¥18.83B	7.40	―	3.47%	4.22%	27.56%
9560	74 Outperform	¥9.99B	11.25	―	2.06%	29.06%	41.54%
9345	63 Neutral	¥2.17B	10.99	―	1.92%	4.25%	-6.45%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6096	55 Neutral	¥2.92B	40.34	―	1.68%	-4.16%	―

Meiko Network Japan Co., Ltd. Corporate Events

Meiko Network Japan Posts Higher Q1 Profit and Maintains FY2026 Guidance

Meiko Network Japan reported consolidated net sales of ¥6,027 million for the quarter ended November 30, 2025, up 5.8% year on year, with operating profit rising 21.2% to ¥496 million and profit attributable to owners of parent increasing 5.5% to ¥336 million, while basic earnings per share improved to ¥13.31. Total assets declined to ¥17,763 million but the equity ratio strengthened to 69.5%, the company maintained its dividend plans with a forecast of an annual ¥28.00 per share for the fiscal year ending August 31, 2026, and it kept full-year guidance unchanged at ¥25,500 million in net sales and ¥1,010 million in profit attributable to owners of parent despite an expected year-on-year decline in interim earnings and the consolidation of a new subsidiary, Meiko Mirai Co., Ltd.

The most recent analyst rating on (JP:4668) stock is a Buy with a Yen805.00 price target. To see the full list of analyst forecasts on Meiko Network Japan Co., Ltd. stock, see the JP:4668 Stock Forecast page.

Meiko Network Japan Completes Disposal of Treasury Shares as Restricted Stock for Management and Employees

Meiko Network Japan has completed the payment procedures for a previously approved disposal of 77,500 treasury shares as restricted shares to its directors, executive officers, employees, and directors of subsidiaries, at a disposal price of 715 yen per share for a total value of 55,412,500 yen. The allocation, which excludes outside directors and Audit and Supervisory Committee members, is designed to align management and employee incentives more closely with shareholder interests and to strengthen retention and performance-based compensation across the group, underscoring the company’s continued use of equity-based remuneration as a governance and motivation tool.

The most recent analyst rating on (JP:4668) stock is a Hold with a Yen781.00 price target. To see the full list of analyst forecasts on Meiko Network Japan Co., Ltd. stock, see the JP:4668 Stock Forecast page.

Meiko Network Japan Announces Disposal of Treasury Shares as Part of New Compensation Plan

Meiko Network Japan Co., Ltd. announced the disposal of 77,500 treasury shares as restricted shares to directors, executive officers, employees, and directors of subsidiaries. This move is part of a new compensation plan aimed at aligning the interests of directors with shareholders and enhancing corporate value. The plan, approved in 2024, allows for up to 100,000 shares to be issued annually, providing incentives for sustainable company growth.

The most recent analyst rating on (JP:4668) stock is a Hold with a Yen781.00 price target. To see the full list of analyst forecasts on Meiko Network Japan Co., Ltd. stock, see the JP:4668 Stock Forecast page.