MEC Company Ltd. (JP:4971)
:4971
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MEC Company Ltd.
(4971)
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Rating:74Outperform
Price Target:
¥8,714.00
▲(62.27% Upside)
Action:ReiteratedDate:03/24/26
The score is primarily driven by strong financial quality (high profitability and a debt-free balance sheet), tempered by inconsistent cash flow conversion. Technicals are moderately supportive with a broader uptrend but a short-term pullback, while valuation and dividend yield are only moderate.
Positive Factors
Debt-free Balance Sheet
Zero reported debt across 2021–2025 and steadily compounding equity give the company durable financial flexibility. This conservative capital structure supports investment, R&D, or weathering downturns without refinancing risk, strengthening long-term resilience.
Negative Factors
Weak Cash Conversion
Operating cash rarely exceeded reported net income historically, indicating earnings have not consistently converted to cash. Persistent sub-1x cash conversion constrains free cash build, limits optionality for capital return, and raises reliance on working capital management.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free Balance Sheet
Zero reported debt across 2021–2025 and steadily compounding equity give the company durable financial flexibility. This conservative capital structure supports investment, R&D, or weathering downturns without refinancing risk, strengthening long-term resilience.
Read all positive factors
MEC Company Ltd. (4971) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥143.96B
Dividend Yield0.93%
Average Volume (3M)283.30K
Price to Earnings (P/E)18.7
Beta (1Y)1.15
Revenue Growth10.27%
EPS Growth-5.66%
CountryJP
Employees480
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)92.61
Shares Outstanding19,571,093
10 Day Avg. Volume234,540
30 Day Avg. Volume283,300
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)3.09
Price to Sales (P/S)4.50
P/FCF Ratio75.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)262.84
Revenue Forecast (FY)¥23.00B
MEC Company Ltd. Business Overview & Revenue Model
Company Description
MEC Company Ltd. engages in the research and development, production, and sale of chemicals, equipment, and related materials used in the production of printed circuit boards in Asia and Europe. It offers various chemicals for roughening type adhe...
How the Company Makes Money
MEC Company Ltd. generates revenue by manufacturing and selling specialized electronic materials and components used in various industrial applications. Its primary sources of income include sales of precision parts, advanced materials, and equipm...
MEC Company Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.74B | 20.95B | 18.23B | 14.02B | 16.33B | 15.04B |
| Gross Profit | 11.52B | 12.98B | 11.10B | 8.32B | 9.80B | 9.32B |
| EBITDA | 5.46B | 6.57B | 5.38B | 3.27B | 4.76B | 4.68B |
| Net Income | 2.29B | 5.03B | 2.29B | 2.30B | 3.06B | 2.95B |
Balance Sheet | ||||||
| Total Assets | 32.88B | 36.42B | 33.04B | 28.67B | 27.50B | 25.31B |
| Cash, Cash Equivalents and Short-Term Investments | 8.87B | 10.35B | 11.48B | 8.76B | 9.44B | 7.15B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 5.48B | 5.95B | 6.14B | 3.89B | 4.17B | 4.38B |
| Stockholders Equity | 27.39B | 30.47B | 26.90B | 24.78B | 23.33B | 20.93B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.24B | 3.47B | 83.48M | 3.24B | 2.35B |
| Operating Cash Flow | 0.00 | 3.98B | 4.20B | 1.94B | 3.81B | 3.01B |
| Investing Cash Flow | 0.00 | -3.39B | 51.60M | -1.40B | -939.36M | -1.12B |
| Financing Cash Flow | 0.00 | -2.25B | -873.09M | -1.77B | -800.47M | -916.11M |
MEC Company Ltd. Technical Analysis
Positive
5370.00
Price Trends
6687.20
Positive
5910.96
Positive
4578.68
Positive
Market Momentum
158.21
Negative
62.66
Neutral
82.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4971, the sentiment is Positive. The current price of 5370 is below the 20-day moving average (MA) of 6952.00, below the 50-day MA of 6687.20, and above the 200-day MA of 4578.68, indicating a bullish trend. The MACD of 158.21 indicates Negative momentum. The RSI at 62.66 is Neutral, neither overbought nor oversold. The STOCH value of 82.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4971.
MEC Company Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥113.61B | 12.08 | 9.19% | 3.33% | -17.97% | ― | |
77 Outperform | ¥119.27B | 10.07 | ― | 3.72% | 5.40% | 14.80% | |
76 Outperform | ¥79.99B | 6.04 | ― | 3.04% | 1.57% | -33.97% | |
76 Outperform | ¥90.44B | 7.61 | ― | 3.02% | 1.66% | 11.28% | |
74 Outperform | ¥143.96B | 18.74 | ― | 0.93% | 10.27% | -5.66% | |
74 Outperform | ¥167.59B | 8.76 | 6.23% | 1.11% | 2.88% | 16.60% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4971
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MEC Company Ltd. Corporate Events
MEC Completes Liquidation of Hong Kong Subsidiary With No Earnings Impact
Mar 17, 2026
MEC Company Ltd. has completed the liquidation of its wholly owned subsidiary MEC (Hong Kong) Ltd., which was established in 1996 to sell chemicals for electronic substrates in Hong Kong and the surrounding region. The unit had already been exclud...
MEC Company Lifts Year-End Dividend on Stronger Earnings
Feb 13, 2026
MEC Company Ltd. has resolved to increase its year-end dividend for the fiscal year ended December 31, 2025, raising the payout to 71 yen per share from the previously forecast 60 yen, with total dividend payments rising to 1,305 million yen and a...
MEC lifts profitability targets and rebalances 2027 sales mix amid AI-driven demand
Feb 13, 2026
MEC Company Ltd. has updated the numerical targets in its 2030 Vision Phase 2 Medium-Term Management Plan for 2025–2027, keeping its 2027 consolidated sales goal at ¥25 billion but shifting more weight to its core business and reducing ...
MEC Company Ltd. Delivers Double-Digit Revenue and Profit Growth for FY 2025
Feb 13, 2026
MEC Company Ltd., a specialty chemicals manufacturer, reported solid growth in its key product lines for the fiscal year ended December 2025, led by strong demand for its CZ chemicals and steady performance from EXE and V-Bond products, despite a ...
MEC Company’s 2025 Profit More Than Doubles as Dividend Jumps Despite Softer 2026 Outlook
Feb 13, 2026
MEC Company Ltd. reported strong consolidated results for the fiscal year ended December 31, 2025, with net sales rising 14.9% to ¥20.95 billion and profit attributable to owners of parent more than doubling to ¥5.03 billion, driving bas...
MEC Company Hikes Year-End Dividend on Stronger Earnings
Feb 13, 2026
MEC Company Ltd. has announced that its board has approved an increased year-end dividend of 71 yen per share for the fiscal year ended December 31, 2025, up from the previously forecast 60 yen and significantly higher than the prior year’s ...
MEC Raises Profitability Targets, Reshapes Sales Mix in 2025–2027 Plan Update
Feb 13, 2026
MEC Company Ltd. has updated the numerical targets in its 2030 Vision Phase 2 Medium-Term Management Plan for 2025–2027, keeping consolidated sales for 2027 at 25 billion yen but shifting the mix toward stronger core business revenues and lo...
MEC Company Delivers Double-Digit Profit Growth on Strong Chemical Sales
Feb 13, 2026
MEC Company Ltd. reported strong results for the fiscal year ending December 2025, with sales rising 14.9% year on year to 20,947 million yen and operating income climbing 26.0% to 5,748 million yen. Chemical segment sales grew 15.6% to 20,211 mil...
MEC Company Doubles Profit and Lifts Dividend as Balance Sheet Strengthens
Feb 13, 2026
MEC Company Ltd. reported consolidated net sales of ¥20.9 billion for the year ended December 31, 2025, up 14.9% year on year, with operating income rising 26.0% to ¥5.7 billion and profit attributable to owners of parent more than doubl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.