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Meidensha Corporation (JP:6508)
:6508

Meidensha Corporation (6508) AI Stock Analysis

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JP

Meidensha Corporation

(Frankfurt:6508)

Rating:76Outperform
Price Target:
¥5,283.00
▲(0.25%Upside)
The overall stock score of 76 reflects Meidensha Corporation's strong financial performance and robust technical indicators, although caution is warranted due to overbought technical signals. The company's reasonable valuation with a solid dividend yield further supports its attractiveness, though attention should be given to managing liabilities to mitigate future risks.

Meidensha Corporation (6508) vs. iShares MSCI Japan ETF (EWJ)

Meidensha Corporation Business Overview & Revenue Model

Company DescriptionMeidensha 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 related to social infrastructure, including power generation and transmission systems. The company's Industrial Systems segment offers products and services, such as industrial components, dynamometer systems, and automatic guided vehicles to businesses in the general manufacturing Industry. Its Maintenance and Service segment engages in the maintenance business. The company's Real Estate segment rents office spaces and commercial buildings. Its Other segment manufactures and markets electrochemical measuring equipment and electric insulation materials; and provides employees welfare and goods merchandising services. The company also engages in the maintenance and operation management for water, sewerage, and industrial water treatment facilities, industrial wastewater treatment facilities, and general and industrial waste treatment facilities; engages in wind power generation business; designs, manufactures, sells, and repairs hydroelectric generators and peripherals; manufactures and sells switchboards, control panels, and their components; act as an insurance agent; and develops software, as well as designs, sells, and rents computer systems and networks. Meidensha Corporation was founded in 1897 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMeidensha Corporation generates revenue through the sale of its electrical equipment and systems across various industrial sectors. Its primary revenue streams include contracts for power systems, which involve the supply and installation of products like transformers, switchgears, and generators. The company also earns income from industrial automation solutions, which are used to enhance efficiency and productivity in manufacturing processes. Additionally, Meidensha offers maintenance and after-sales services, which provide a steady stream of recurring revenue. Strategic partnerships with governments and private sector entities further bolster its earnings, as these collaborations often lead to large-scale infrastructure projects and long-term service agreements.

Meidensha Corporation Financial Statement Overview

Summary
Meidensha Corporation demonstrates strong financial health with consistent revenue growth and improved profitability margins. The balance sheet is robust with low leverage and effective equity utilization. Cash flow management has improved significantly, suggesting a positive outlook for future operations. However, the company should continue to focus on maintaining low debt levels and managing liabilities to mitigate potential risks.
Income Statement
85
Very Positive
The company exhibits a strong gross profit margin of 26.07% for the latest year, reflecting robust cost management and pricing power. The net profit margin has improved significantly to 6.14%, up from previous periods, indicating better operational efficiency. Revenue growth rate is healthy at 4.61%, and the EBIT margin has improved to 7.14%, showcasing enhanced profitability. However, the EBITDA margin of 11.94% suggests room for improvement compared to industry leaders.
Balance Sheet
78
Positive
The balance sheet shows a solid equity position with a Debt-to-Equity ratio of 0.32, indicating low leverage and financial stability. The Return on Equity (ROE) has risen to 13.32%, demonstrating efficient use of equity capital. The equity ratio stands at 40.66%, reflecting a strong equity base relative to total assets. While the metrics indicate strength, the total liabilities remain relatively high, which could pose future risks if not managed effectively.
Cash Flow
82
Very Positive
Operating cash flow to net income ratio is strong at 1.92, indicating excellent cash generation capability relative to reported earnings. The free cash flow has improved significantly, with a remarkable growth rate from negative to 24.91 billion yen, supporting further investment opportunities. Although past free cash flows were inconsistent, recent trends suggest improved cash flow management and potential for sustained positive cash flows.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue301.10B287.88B272.58B255.05B231.25B
Gross Profit78.51B68.99B62.98B61.12B57.90B
EBITDA35.98B27.67B19.70B22.00B18.83B
Net Income18.49B11.21B7.13B6.73B7.30B
Balance Sheet
Total Assets341.35B334.79B307.39B290.90B279.06B
Cash, Cash Equivalents and Short-Term Investments30.68B18.98B14.92B14.07B14.31B
Total Debt44.56B54.68B50.51B48.47B47.60B
Total Liabilities199.13B205.30B196.51B185.48B179.32B
Stockholders Equity138.78B126.41B107.90B101.97B96.53B
Cash Flow
Free Cash Flow24.91B-375.00M1.35B2.48B-1.01B
Operating Cash Flow35.45B8.97B13.74B11.39B14.60B
Investing Cash Flow-9.06B-7.55B-10.51B-7.50B-13.12B
Financing Cash Flow-14.54B749.00M-2.69B-4.27B-1.40B

Meidensha Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5270.00
Price Trends
50DMA
4550.60
Positive
100DMA
4361.21
Positive
200DMA
4105.05
Positive
Market Momentum
MACD
229.70
Positive
RSI
66.24
Neutral
STOCH
46.23
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 5270 is above the 20-day moving average (MA) of 5073.75, above the 50-day MA of 4550.60, and above the 200-day MA of 4105.05, indicating a bullish trend. The MACD of 229.70 indicates Positive momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 46.23 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€239.10B12.9314.03%2.20%4.59%64.99%
66
Neutral
€4.07B9.2018.29%3.43%3.84%-103.41%
$1.74B23.354.82%2.89%
$1.10B26.083.09%3.88%
DETSB
€1.12B8.088.48%5.17%
71
Outperform
¥150.62B13.40
2.50%20.05%-26.75%
69
Neutral
¥262.15B21.69
1.02%16.07%61.08%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6508
Meidensha Corporation
5,270.00
1,804.99
52.09%
FMMFF
Fuji
18.32
2.45
15.44%
UHOIF
Ushio
12.02
-0.21
-1.72%
DE:TSB
Tsubakimoto Chain Co.
10.50
-1.01
-8.77%
JP:6507
Sinfonia Technology Co., Ltd.
9,300.00
5,753.19
162.21%
JP:6622
Daihen Corporation
6,610.00
-1,422.38
-17.71%

Meidensha Corporation Corporate Events

Meidensha Corporation Announces Board of Directors Candidates
May 13, 2025

Meidensha Corporation has announced the candidates for its Board of Directors election, which will be proposed at the upcoming 161st Ordinary General Meeting of Shareholders on June 25, 2025. This announcement includes the reelection of key figures such as Akio Inoue and Takeshi Miida, indicating a continuity in leadership. The changes in the board are expected to reinforce the company’s strategic direction and maintain its industry positioning, potentially impacting stakeholders by ensuring stability and consistent governance.

The most recent analyst rating on (JP:6508) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha Corporation Unveils Ambitious Medium-term Management Plan 2027
May 13, 2025

Meidensha Corporation has launched its Medium-term Management Plan 2027, aiming for steady growth and future challenges over the next three years. The plan includes capital investments to enhance manufacturing facilities and expand into new markets, with a focus on digitalization and sustainable growth in existing and new business areas.

The most recent analyst rating on (JP:6508) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha Corporation Proposes Increased Year-End Dividend Amid Strong Performance
May 13, 2025

Meidensha Corporation announced a proposal to increase its year-end dividend to 88 yen per share, reflecting strong financial performance for the fiscal year ending March 31, 2025. This decision aligns with the company’s policy of enhancing shareholder returns and equity, marking a significant rise from the previous forecast of 58 yen per share.

The most recent analyst rating on (JP:6508) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha Corporation Exceeds Profit Forecasts Despite Sales Decline
May 13, 2025

Meidensha Corporation announced a discrepancy between its forecasted and actual financial results for the fiscal year ending March 2025. Despite a decrease in net sales due to project delays, the company exceeded its profit forecasts through increased operational efficiency and cost reductions, resulting in higher operating and net income.

The most recent analyst rating on (JP:6508) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha Corporation Achieves Strong Financial Performance in FY2025
May 13, 2025

Meidensha Corporation reported strong financial results for the fiscal year ended March 31, 2025, with a 4.6% increase in net sales and significant growth in operating and ordinary income. The company benefited from expanding demand for equipment upgrades in the domestic electric power market and increased demand for products not using SF6 gas in developed countries. However, the EV business faced challenges due to weakened momentum in the automotive industry. The company achieved record highs in net sales and operating income in several business segments, including Power Infrastructure and Field Service Engineering, while continuing to focus on sustainability management and strengthening its overseas business earnings base.

The most recent analyst rating on (JP:6508) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

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.Date of analysis: Jun 27, 2025