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

• Market Cap: ¥4.76B
• Dividend Yield: 1.22%
• Average Volume (3M): 17.47K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.42
• 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: ¥456.00 ▲(28.45% 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

Improving Equity Position

A declining debt-to-equity ratio indicates the company has strengthened its capital structure. This improvement increases financial flexibility, reduces default risk, and supports longer-term investment or restructuring initiatives, raising resilience to industry cyclicality.

Better Cost Management (Gross Margin)

Sustained improvement in gross margin reflects effective cost control and operational efficiency. Better margins create lasting buffer against revenue swings, enable reinvestment or R&D, and support sustainable profitability even if top-line growth is uneven.

Lower Market Sensitivity (Low Beta)

A low beta suggests the company is less sensitive to broad market swings, which can provide steadier earnings through economic cycles. For an industrial machinery firm, this structural stability can aid in planning capital expenditures and securing supplier/customer relationships.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flow erode liquidity and limit the firm's ability to fund capex, debt reduction, or dividends internally. Over months, this necessitates external financing or asset sales, raising financing costs and constraining strategic flexibility.

Remaining High Leverage Risk

Although leverage has declined, elevated debt levels still increase interest obligations and reduce maneuverability. Over a multi-month horizon, high leverage heightens vulnerability to demand shocks, raising refinancing and solvency risk for a cyclical machinery business.

Volatile Revenue and Profitability

Choppy revenue trends and wide net margin swings indicate demand or execution inconsistencies. Structural volatility complicates long-term planning, weakens earnings predictability, and may deter stable customer or supplier commitments, hindering durable growth initiatives.

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	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: 355.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 398.90, below the 50-day MA of 369.10, and above the 200-day MA of 322.52, indicating a bullish trend. The MACD of 16.58 indicates Negative momentum. The RSI at 65.24 is Neutral, neither overbought nor oversold. The STOCH value of 69.09 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	¥4.64B	10.94	―	1.19%	-6.39%	-3.86%
6248	74 Outperform	¥3.22B	10.25	―	4.50%	4.73%	9.23%
6334	68 Neutral	¥4.76B	14.74	―	1.22%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6467	56 Neutral	¥3.15B	-10.54	―	1.81%	-3.20%	-226.19%
6166	54 Neutral	¥6.51B	35.85	―	―	-7.98%	-52.68%
6218	47 Neutral	¥3.42B	-2.18	―	1.93%	-14.00%	-216.77%