Meidensha Corporation (JP:6508)
:6508
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Meidensha Corporation
(6508)
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Rating:71Outperform
Price Target:
¥8,774.00
▲(5.33% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by improving profitability and a strengthening balance-sheet leverage profile, offset by weak and volatile free cash flow. Technicals are supportive due to a strong uptrend, but overbought signals raise near-term risk. Valuation is reasonable (P/E ~16) with a modest dividend yield (~1.7%).
Positive Factors
Improved profitability and margins
Meidensha's meaningful margin expansion (TTM gross ~27.6%, net ~7.1%) reflects better pricing, mix, and operational leverage. Sustained higher margins increase internal cash generation capacity, support reinvestment and returns, and strengthen resilience to cyclical order timing shifts.
Negative Factors
Weak and volatile free cash flow
Large swings and a ~65% FCF decline highlight unreliable cash conversion (~33% of net income) and episodic negative free cash flow years. Persistent FCF volatility constrains reinvestment, debt repayment and shareholder distributions, and raises funding risk if order timing falters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and margins
Meidensha's meaningful margin expansion (TTM gross ~27.6%, net ~7.1%) reflects better pricing, mix, and operational leverage. Sustained higher margins increase internal cash generation capacity, support reinvestment and returns, and strengthen resilience to cyclical order timing shifts.
Read all positive factors
Meidensha Corporation (6508) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥378.83B
Dividend Yield2.4%
Average Volume (3M)144.09K
Price to Earnings (P/E)8.3
Beta (1Y)1.12
Revenue Growth8.03%
EPS Growth23.50%
CountryJP
Employees9,810
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)167.75
Shares Outstanding45,527,540
10 Day Avg. Volume193,880
30 Day Avg. Volume144,090
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.41
Price to Sales (P/S)0.65
P/FCF Ratio7.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,363.08Price Target Upside-11.61% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)436.15
Revenue Forecast (FY)¥326.64B
Meidensha Corporation Business Overview & Revenue Model
Company Description
Meidensha Corporation engages in the social infrastructure systems, industrial systems, maintenance and servicing, and real estate businesses in Japan and internationally. Its Social Infrastructure Systems segment provides products and services re...
How the Company Makes Money
Meidensha Corporation generates revenue primarily through the sale of its core products and services, which include power generation equipment, rail transportation systems, and industrial machinery. The company benefits from long-term contracts wi...
Meidensha Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 313.87B | 301.10B | 287.88B | 272.58B | 255.05B | 231.25B |
| Gross Profit | 86.62B | 81.59B | 68.99B | 62.98B | 61.12B | 57.90B |
| EBITDA | 41.35B | 35.98B | 27.67B | 22.38B | 23.08B | 22.23B |
| Net Income | 22.19B | 18.49B | 11.21B | 7.13B | 6.73B | 7.30B |
Balance Sheet | ||||||
| Total Assets | 356.72B | 341.35B | 334.79B | 307.39B | 290.90B | 279.06B |
| Cash, Cash Equivalents and Short-Term Investments | 31.22B | 30.68B | 18.98B | 14.92B | 14.07B | 14.31B |
| Total Debt | 49.77B | 46.31B | 56.50B | 51.94B | 49.70B | 48.87B |
| Total Liabilities | 200.01B | 199.13B | 205.30B | 196.51B | 185.47B | 179.32B |
| Stockholders Equity | 153.25B | 138.78B | 126.41B | 107.90B | 101.97B | 96.53B |
Cash Flow | ||||||
| Free Cash Flow | 7.24B | 24.91B | -375.00M | 1.35B | 2.48B | -1.01B |
| Operating Cash Flow | 22.28B | 35.45B | 8.97B | 13.74B | 11.39B | 14.60B |
| Investing Cash Flow | -12.60B | -9.06B | -7.55B | -10.51B | -7.50B | -13.12B |
| Financing Cash Flow | -11.85B | -14.54B | 749.00M | -2.69B | -4.27B | -1.40B |
Meidensha Corporation Technical Analysis
Positive
8330.00
Price Trends
7013.60
Positive
6392.50
Positive
6036.09
Positive
Market Momentum
209.06
Negative
65.59
Neutral
65.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6508, the sentiment is Positive. The current price of 8330 is above the 20-day moving average (MA) of 7515.00, above the 50-day MA of 7013.60, and above the 200-day MA of 6036.09, indicating a bullish trend. The MACD of 209.06 indicates Negative momentum. The RSI at 65.59 is Neutral, neither overbought nor oversold. The STOCH value of 65.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6508.
Meidensha Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥301.90B | 14.76 | ― | 2.50% | 6.16% | 17.11% | |
73 Outperform | ¥279.73B | 14.24 | ― | 1.65% | 14.49% | -21.17% | |
71 Outperform | ¥378.83B | 8.30 | 14.28% | 2.40% | 8.03% | 23.50% | |
71 Outperform | ¥502.99B | 28.49 | 5.25% | 2.13% | -2.23% | 130.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥390.35B | 197.68 | 5.94% | 0.56% | 6.22% | ― | |
55 Neutral | ¥536.81B | -6.48 | 1.88% | 6.16% | 1.98% | -48.28% |
* Industrials Sector Average
JP:6508
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Meidensha Corporation Corporate Events
Meidensha Lifts FY2025 Dividend Forecast, Signals Confidence in Earnings
Feb 27, 2026
Meidensha Corporation has revised its dividend forecast for the fiscal year ending March 2026, setting a year-end dividend at 89 yen per share and an annual dividend at 136 yen, up from the previous year’s 123 yen. The company already paid a...
Meidensha Overhauls Executive Lineup and Structure to Sharpen EV and Mobility Focus
Feb 27, 2026
Meidensha Corporation has announced a comprehensive reshuffle of its top management, including the retirement of two executive officers, promotions for three executives, the appointment of two new executive officers, and the reelection of 24 execu...
Meidensha Lifts Profit and Full-Year Outlook Despite Lower Orders in FY2025 Q3
Jan 30, 2026
Meidensha Corporation reported higher profitability in the third quarter of fiscal 2025 despite a year-on-year decline in orders, with net sales rising 6.7% from the previous year’s third quarter and operating income, ordinary income, and ne...
Meidensha Lifts Full-Year Outlook After Strong Nine-Month Earnings
Jan 30, 2026
Meidensha Corporation reported solid financial performance for the nine months ended December 31, 2025, with net sales rising 6.7% year-on-year to ¥203.9 billion and operating income increasing 18.2% to ¥7.1 billion. Ordinary income clim...
Meidensha to Sell Tokyo Property, Book ¥5.3 Billion Extraordinary Gain
Dec 25, 2025
Meidensha Corporation has resolved to sell land and an office building with parking in Tokyo’s Osaki district as part of a broader effort to optimize use of its assets, improve capital efficiency, and redeploy funds into growth investments a...
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.