MEC Company Ltd. (JP:4971)
:4971
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MEC Company Ltd.
(4971)
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Rating:82Outperform
Price Target:
¥12,145.00
▲(126.16% Upside)
Action:Reiterated
Date:04/25/26
The score is driven primarily by strong financial strength (high profitability and a debt-free balance sheet), tempered by inconsistent cash-flow conversion. Technicals add support due to clear positive momentum and trend strength. Valuation appears reasonable on earnings but offers only a modest dividend yield.
Positive Factors
Conservative balance sheet
A zero-debt, steadily growing equity base provides material financial flexibility: it lowers solvency risk, enables investment or R&D funding without external financing, and sustains resilience through industry cycles—advantages that support durable strategic optionality.
Negative Factors
Uneven cash generation
Consistent accounting profits have not reliably converted to cash, with OCF below net income in most years and weak FCF conversion in 2025. This pattern suggests working-capital swings or timing of receipts/payments that can constrain discretionary spending and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A zero-debt, steadily growing equity base provides material financial flexibility: it lowers solvency risk, enables investment or R&D funding without external financing, and sustains resilience through industry cycles—advantages that support durable strategic optionality.
Read all positive factors
MEC Company Ltd. (4971) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥178.75B
Dividend Yield0.93%
Average Volume (3M)283.30K
Price to Earnings (P/E)18.9
Beta (1Y)1.26
Revenue Growth23.76%
EPS Growth212.38%
CountryJP
Employees480
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)123.79
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)279.81
Revenue Forecast (FY)¥23.80B
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
Neutral
5370.00
Price Trends
8115.80
Positive
6949.49
Positive
5383.32
Positive
Market Momentum
730.58
Positive
50.83
Neutral
29.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4971, the sentiment is Neutral. The current price of 5370 is below the 20-day moving average (MA) of 9601.50, below the 50-day MA of 8115.80, and below the 200-day MA of 5383.32, indicating a neutral trend. The MACD of 730.58 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 29.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥178.75B | 18.85 | ― | 0.93% | 23.76% | 212.38% | |
79 Outperform | ¥110.96B | 7.03 | 9.19% | 3.33% | -10.12% | 276.36% | |
77 Outperform | ¥111.87B | 8.38 | ― | 3.72% | 4.49% | 27.96% | |
74 Outperform | ¥92.47B | 11.05 | ― | 3.02% | 0.51% | 3.23% | |
73 Outperform | ¥150.83B | 11.18 | 6.23% | 1.11% | 3.36% | 14.17% | |
73 Outperform | ¥75.50B | 9.11 | ― | 3.04% | -0.37% | -20.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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MEC Company Ltd. Corporate Events
MEC Lifts Earnings and Dividend Outlook on Strong AI-Related Semiconductor Demand
May 12, 2026
MEC Company Ltd. raised its consolidated earnings outlook for the first half and full year ending December 31, 2026, citing stronger-than-expected demand for products used in semiconductor package substrates for generative AI and data centers, as ...
MEC Company Delivers Strong Q1 FY2026 Results on Robust Chemical Demand
May 12, 2026
MEC Company Ltd. reported strong first-quarter results for the fiscal year ending December 2026, with sales rising 38.5% year on year to 6,128 million yen and operating income surging 90.2% to 2,079 million yen. Within its core chemical segment, s...
MEC Company Delivers Profit Surge and Lifts Dividend, Forecasts Strong FY2026 Growth
May 12, 2026
MEC Company Ltd. reported a strong start to fiscal 2026, with first-quarter net sales rising 38.5% year-on-year to ¥6.13 billion and net income attributable to owners of the parent surging 220.8% to ¥1.53 billion, reflecting significant ...
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...
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.