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

• Market Cap: ¥19.01B
• Dividend Yield: 3.35%
• Average Volume (3M): 54.25K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.35
• Revenue Growth: 10.85%
• EPS Growth: 123.10%
• Country: JP
• Employees: 1,197
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Education & Training Services
• EPS (TTM): -10.74
• Shares Outstanding: 27,803,600
• 10 Day Avg. Volume: 64,140
• 30 Day Avg. Volume: 54,250
• PEG Ratio: 0.98
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥799.00
• Price Target Upside: 7.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥774.00 ▲(3.75%Upside)

The overall stock score reflects strong financial stability and revenue growth, offset by challenges in profitability and a lack of technical momentum. The stock is fairly valued with a reasonable dividend yield, making it appealing for income investors.

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

Company Description

Meiko Network Japan Co., Ltd. (4668) is a Japanese company primarily engaged in the education sector. The company operates a chain of cram schools, known as 'Meiko Gijuku,' which offer supplementary education services to students ranging from elementary to high school levels. Meiko Network Japan focuses on providing personalized and tailored tutoring services to help students improve their academic performance across various subjects.

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

Meiko Network Japan Co., Ltd. demonstrates strong revenue growth and financial stability with minimal leverage. However, profitability metrics indicate challenges, with a declining net profit margin and return on equity. The company's cash flow position is improving, albeit with room for better conversion of profits into free cash flow.

Income Statement

The company's revenue has shown consistent growth with a 8.18% increase in 2024 compared to 2023. Gross profit margin remains healthy at 23.32% in 2024. However, net profit margin has declined to 2.17% due to a drop in net income, indicating potential profitability issues. EBIT and EBITDA margins have remained stable, reflecting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating minimal leverage risks. The equity ratio stands at a strong 66.98%, showcasing financial stability. Return on equity has decreased to 4.49%, reflecting a need for improved profitability.

Cash Flow

Free cash flow has grown by 46.07%, indicating improved cash management. The operating cash flow to net income ratio is robust, suggesting strong cash generation relative to earnings. However, the free cash flow to net income ratio is lower, pointing to potential challenges in converting earnings into free cash flow.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	22.58B	20.87B	19.67B	19.04B	18.22B
Gross Profit	5.26B	5.05B	5.05B	5.13B	4.40B
EBITDA	1.39B	1.40B	1.43B	1.23B	-806.00M
Net Income	489.00M	809.00M	974.00M	1.14B	-2.24B
Balance Sheet
Total Assets	16.24B	15.81B	15.44B	14.65B	14.04B
Cash, Cash Equivalents and Short-Term Investments	7.87B	8.57B	8.76B	8.93B	7.32B
Total Debt	26.00M	6.00M	11.00M	8.00M	10.00M
Total Liabilities	5.36B	4.61B	4.83B	4.63B	4.57B
Stockholders Equity	10.88B	11.20B	10.60B	10.02B	9.47B
Cash Flow
Free Cash Flow	520.00M	356.00M	285.00M	553.00M	-177.00M
Operating Cash Flow	742.00M	608.00M	489.00M	742.00M	140.00M
Investing Cash Flow	-595.00M	-307.00M	150.00M	1.70B	1.24B
Financing Cash Flow	-863.00M	-588.00M	-653.00M	-628.00M	-2.06B

Meiko Network Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 746.00
• 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:4668, the sentiment is Positive. The current price of 746 is below the 20-day moving average (MA) of 747.85, above the 50-day MA of 738.46, and above the 200-day MA of 721.68, indicating a bullish trend. The MACD of 2.75 indicates Positive momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 61.39 is Neutral, 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
9795	80 Outperform	¥38.36B	14.20		3.31%	6.41%	11.83%
9769	72 Outperform	¥25.70B	13.67		3.90%	0.69%	1.90%
4645	69 Neutral	¥3.51B	18.07		2.32%	2.04%	-22.91%
7030	66 Neutral	¥19.44B	31.67		3.45%	5.86%	-21.50%
Sector *	64 Neutral	$22.84B	13.40	-0.89%	3.13%	3.00%	-17.67%
4668	63 Neutral	¥19.01B	16.41		3.35%	10.85%	123.10%

Meiko Network Japan Co., Ltd. Corporate Events

Meiko Network Japan Announces Director Changes and New Nomination

Meiko Network Japan Co., Ltd. announced a change in its board of directors, with Yasutada Taniguchi retiring to focus on leading a subsidiary, Go Good Co., Ltd. Katsuki Saito has been nominated as the new Managing Director, bringing extensive experience in the education sector to the role, which could enhance the company’s strategic direction and growth in its core business areas.

Meiko Network Japan Revises Earnings Forecast Upward for FY 2025

Meiko Network Japan Co., Ltd. has announced an upward revision of its full-year consolidated earnings forecast for the fiscal year ending August 31, 2025. This revision is primarily due to an anticipated extraordinary gain from the sale of investment securities, specifically the tendering of shares in With us Corporation. The company expects a significant increase in profit attributable to owners of the parent, while net sales, operating profit, and ordinary profit remain unchanged. This strategic move reflects Meiko Network’s focus on strengthening its financial position and investing in future growth opportunities.

Meiko Network Japan Reports Strong Financial Growth for Nine Months Ending May 2025

Meiko Network Japan Co., Ltd. reported a significant increase in its consolidated financial results for the nine months ended May 31, 2025, with net sales rising by 10.4% and operating profit surging by 459.2% compared to the previous year. The company’s strong financial performance indicates a positive impact on its operations and suggests a robust market positioning, which could have favorable implications for stakeholders.

Meiko Network Japan to Record Extraordinary Income from Share Sale

Meiko Network Japan Co., Ltd. has resolved to participate in a tender offer by NSSK-J1 Co., Ltd. for its shares in With us Corporation, expecting to record an extraordinary income of ¥782 million from this sale in the fourth quarter of the fiscal year ending August 2025. This move is anticipated to enhance the company’s corporate value, with potential revisions to its earnings forecast for the fiscal year being considered.

Meiko Network Japan Establishes New Subsidiary to Tackle School Absenteeism

Meiko Network Japan Co., Ltd. announced the establishment of a new subsidiary, Meiko Mirai Co., Ltd., to address the growing social issue of school absenteeism in Japan. The subsidiary will integrate online and offline educational services, including the acquisition of Class Japan Gakuen, to offer diverse learning options and enhance the company’s growth and corporate value.

Meiko Network Japan Announces Leadership Changes

Meiko Network Japan Co., Ltd. announced a change in the concurrent positions of its Representative Director, Kazuhito Yamashita, effective June 1, 2025. This change reflects a strategic realignment within the company’s leadership, potentially impacting its operational focus and stakeholder relationships, particularly in its educational ventures and international operations.