Meiji Machine Co., Ltd. (6334) AI Stock Analysis

• Market Cap: ¥4.17B
• Dividend Yield: 1.18%
• Average Volume (3M): 17.47K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.40
• Revenue Growth: 12.31%
• EPS Growth: 138.05%
• Country: JP
• Employees: 150
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -9.54
• Shares Outstanding: 11,402,636
• 10 Day Avg. Volume: 10,950
• 30 Day Avg. Volume: 17,466
• PEG Ratio: -0.44
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -4.34
• 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: 68 Neutral
• Price Target: ¥374.00 ▲(3.89% Upside)

The overall stock score of 68.3 reflects a balanced view of Meiji Machine Co., Ltd. The most significant factor is the positive technical analysis, indicating strong market momentum. Financial performance is mixed, with strengths in cost management but challenges in cash flow and profitability. Valuation is moderate, with a reasonable P/E ratio and modest dividend yield. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

The company has shown strong revenue growth of over 30%, indicating successful market expansion and product demand, which supports long-term business sustainability.

Cost Management

Effective cost management and improved equity ratios suggest operational efficiency and a stronger financial foundation, enhancing long-term competitiveness.

Product Innovation

Continued investment in R&D for product innovation helps maintain a competitive edge, driving future sales growth and market leadership.

Negative Factors

Cash Flow Challenges

Negative operating cash flow indicates cash management issues, which could hinder the company's ability to invest in growth and manage liabilities effectively.

Profitability Volatility

Significant fluctuations in net profit margin highlight instability in profitability, which can affect long-term financial planning and investor confidence.

Leverage Risk

While the debt-to-equity ratio has improved, it remains high, posing leverage risks that could impact financial flexibility and increase vulnerability to economic downturns.

Meiji Machine Co., Ltd. Business Overview & Revenue Model

Company Description

Meiji Machine Co., Ltd. (6334) is a Japanese company specializing in the manufacturing of precision machinery and industrial equipment. The company operates in various sectors, including automotive, electronics, and general manufacturing. Meiji Machine is known for its high-quality products such as CNC (Computer Numerical Control) machines, cutting tools, and automation systems, which are designed to enhance productivity and efficiency in manufacturing processes.

How the Company Makes Money

Meiji Machine Co., Ltd. generates revenue primarily through the sale of its machinery and equipment to businesses in multiple sectors, including automotive and electronics. The company has a diversified revenue model that includes direct sales, service contracts, and aftermarket support, which provides ongoing maintenance and parts replacement for its products. Key revenue streams are derived from both domestic and international markets, with significant partnerships established with manufacturers and industrial firms that rely on Meiji's precision machinery for their production needs. Additionally, the company invests in research and development to innovate and enhance its product offerings, which helps maintain a competitive edge and drive sales growth.

Meiji Machine Co., Ltd. Financial Statement Overview

Summary

Meiji Machine Co., Ltd. exhibits mixed financial performance with strengths in cost management and improving equity ratios, yet struggles with cash flow and profitability volatility. The company faces challenges in sustaining stable revenue and managing leverage efficiently, requiring strategic adjustments to improve long-term financial stability.

Income Statement

Meiji Machine Co., Ltd. shows inconsistent revenue growth, with a decline in revenue from 2021 to 2025, despite a brief increase in 2023. Gross profit margin has improved recently, indicating better cost management. However, net profit margin fluctuates significantly, highlighting volatility in profitability. The EBIT and EBITDA margins show similar instability over the years, posing a challenge to sustained profitability.

Balance Sheet

The company's debt-to-equity ratio has improved as total debt decreased relative to equity, but it remains high, indicating leverage risk. The equity ratio has shown improvement, suggesting a stronger equity position. Return on Equity (ROE) is unstable due to fluctuating net income, impacting overall financial health.

Cash Flow

Cash flow is a concern, with negative operating cash flow in recent years, indicating cash management challenges. Free cash flow has been negative recently, reflecting potential liquidity issues. The operating cash flow to net income ratio and free cash flow to net income ratios highlight cash flow inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.75B	6.51B	4.90B	6.31B	7.59B	12.95B
Gross Profit	1.57B	1.47B	893.51M	716.08M	890.00M	95.14M
EBITDA	223.00M	276.23M	346.79M	1.80B	45.39M	-899.19M
Net Income	246.08M	120.43M	314.10M	1.76B	-117.42M	-956.86M
Balance Sheet
Total Assets	5.83B	6.83B	6.87B	7.24B	7.24B	9.24B
Cash, Cash Equivalents and Short-Term Investments	834.00M	1.65B	2.45B	2.43B	2.66B	4.31B
Total Debt	1.83B	2.01B	1.64B	1.85B	2.66B	2.36B
Total Liabilities	2.86B	3.79B	3.69B	3.81B	6.11B	8.02B
Stockholders Equity	2.96B	3.04B	3.18B	3.43B	1.14B	1.22B
Cash Flow
Free Cash Flow	0.00	-751.14M	453.21M	-1.59B	-2.07B	1.32B
Operating Cash Flow	0.00	-418.90M	964.18M	-1.37B	-1.94B	1.63B
Investing Cash Flow	0.00	-763.30M	-470.23M	1.73B	-59.21M	589.29M
Financing Cash Flow	0.00	159.16M	-327.28M	-804.48M	295.20M	-288.99M

Meiji Machine Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 360.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6334, the sentiment is Positive. The current price of 360 is below the 20-day moving average (MA) of 368.05, above the 50-day MA of 346.56, and above the 200-day MA of 305.86, indicating a bullish trend. The MACD of 5.59 indicates Positive momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 86.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6334.

Meiji Machine Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	74 Outperform	¥3.00B	9.55	―	4.45%	4.73%	9.23%
6396	72 Outperform	¥3.87B	7.83	―	1.46%	-6.39%	-3.86%
6334	68 Neutral	¥4.17B	12.90	―	1.18%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6467	56 Neutral	¥3.13B	―	―	1.64%	-3.20%	-226.19%
6166	51 Neutral	¥2.87B	15.77	―	―	-7.98%	-52.68%
6218	47 Neutral	¥3.28B	―	―	1.95%	-14.00%	-216.77%