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

• Market Cap: ¥4.70B
• Dividend Yield: 1.22%
• Average Volume (3M): 17.47K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.44
• Revenue Growth: 12.31%
• EPS Growth: 138.05%
• Country: JP
• Employees: 150
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -5.75
• 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: ¥449.00 ▲(26.48% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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

Improving equity position

A declining debt-to-equity trend indicates the firm has reduced leverage relative to equity, strengthening solvency and financial flexibility over the medium term. This improvement makes it easier to fund capex, absorb shocks, and pursue strategic investments without immediate refinancing pressure.

Better cost management

Rising gross margins reflect durable improvements in operations or pricing power, which can sustain earnings through revenue variability. Persistent margin gains enhance long-term profitability, provide room for reinvestment, and improve the company's ability to generate operating cash once revenue stabilizes.

Recent revenue growth

A positive recent revenue growth rate signals recovering demand or successful market activity. If sustained, this trend supports scale economies, steadier margins, and a larger base for reinvestment and product development, improving the firm's long-term revenue profile and strategic optionality.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow undermine the company's ability to self-fund operations, capex, and returns to shareholders. Over months, this forces reliance on external financing, increases interest and refinancing risk, and constrains strategic investments and resilience to shocks.

Inconsistent revenue and profitability

Revenue and profit volatility reduce predictability of cash generation and make long-term planning harder. Inconsistent top-line performance can erode customer confidence, complicate capacity planning, and hamper margin stability, limiting durable improvements in ROE and investor confidence.

Remaining high leverage and unstable ROE

Elevated leverage despite reductions keeps the firm exposed to interest rate and cyclical risks; unstable ROE signals earnings unpredictability. Together these constrain strategic flexibility, increase default risk in downturns, and make long-term capital allocation and investor returns less reliable.

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

Company Description

Meiji Machine Co., Ltd. engages in the manufacture and sale of machines for milling grains in Japan. The company offers mills, classification machines, separators, mixers, transportation equipment, pneumatic machinery, processing equipment, bag-opening equipment, rollers, microwave tempering machines, scales, automatic packaging and weighing machines, and various other machines. It also manufactures and constructs equipment and plants in related fields. In addition, the company is involved in the solar power generation business; development of mechanical parking garage systems. Further, the company operates as an agent for LED lighting products, as well as GAINA, a heat-insulating paint. The company was formerly known as Yamakoshi Machinery Co., Ltd. and changed its name to Meiji Machine Co., Ltd. in 1948. Meiji Machine Co., Ltd. was founded in 1899 and is headquartered in Tokyo, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 355.00
• 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:6334, the sentiment is Positive. The current price of 355 is below the 20-day moving average (MA) of 412.65, below the 50-day MA of 394.46, and above the 200-day MA of 336.80, indicating a bullish trend. The MACD of 1.72 indicates Positive momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 62.00 is Neutral, 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
6396	79 Outperform	¥5.01B	14.96	―	1.19%	-6.39%	-3.86%
6248	74 Outperform	¥3.55B	9.96	―	4.50%	4.73%	9.23%
6334	68 Neutral	¥4.70B	27.25	―	1.22%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6467	56 Neutral	¥3.27B	-8.54	―	1.81%	-3.20%	-226.19%
6166	50 Neutral	¥9.90B	60.49	―	―	-7.98%	-52.68%
6218	47 Neutral	¥3.64B	-2.74	―	1.93%	-14.00%	-216.77%