Meidensha Corporation (6508) AI Stock Analysis

• Market Cap: €266.77B
• Dividend Yield: 2.09%
• Average Volume (3M): 183.86K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.08
• Revenue Growth: 5.25%
• EPS Growth: 25.21%
• Country: JP
• Employees: 9,810
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 10.26
• Shares Outstanding: 45,527,540
• 10 Day Avg. Volume: 160,890
• 30 Day Avg. Volume: 183,863
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €6,499.40
• Price Target Upside: 10.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥6,638.00 ▲(12.51% Upside)

Meidensha Corporation's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. The technical analysis indicates moderate bullish momentum, while the valuation metrics suggest the stock is fairly valued with a reasonable dividend yield. The absence of earnings call data and corporate events does not impact the score.

Meidensha Corporation Business Overview & Revenue Model

Company Description

Meidensha Corporation (6508) is a Japanese company that specializes in the development, manufacturing, and sale of electrical equipment and systems. Founded in 1897, the company operates in several sectors including power generation, transmission, and distribution, as well as industrial systems and automation. Its core products include transformers, generators, switchgear, and electric motors, catering to utilities, industries, and infrastructure projects worldwide.

How the Company Makes Money

Meidensha Corporation generates revenue through the sale and servicing of its electrical equipment and systems. The company's key revenue streams include the manufacturing and sales of products such as transformers, generators, and switchgear to utilities and industrial clients. Additionally, Meidensha provides maintenance, repair, and operational services, which contribute significantly to its earnings. The company also engages in long-term contracts and partnerships with governments and large corporations for infrastructure projects, further enhancing its revenue potential. These partnerships allow Meidensha to be involved in large-scale projects that require significant electrical infrastructure, ensuring a steady flow of income.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	304.52B	301.10B	287.88B	272.58B	255.05B	231.25B
Gross Profit	83.44B	78.51B	68.99B	62.98B	61.12B	57.90B
EBITDA	33.18B	35.98B	27.67B	22.38B	23.08B	22.23B
Net Income	17.93B	18.49B	11.21B	7.13B	6.73B	7.30B
Balance Sheet
Total Assets	324.50B	341.35B	334.79B	307.39B	290.90B	279.06B
Cash, Cash Equivalents and Short-Term Investments	40.90B	30.68B	18.98B	14.92B	14.07B	14.31B
Total Debt	38.91B	44.56B	54.68B	50.51B	48.47B	47.60B
Total Liabilities	184.12B	199.13B	205.30B	196.51B	185.48B	179.32B
Stockholders Equity	136.98B	138.78B	126.41B	107.90B	101.97B	96.53B
Cash Flow
Free Cash Flow	23.35B	24.91B	-375.00M	1.35B	2.48B	-1.01B
Operating Cash Flow	35.61B	35.45B	8.97B	13.74B	11.39B	14.60B
Investing Cash Flow	-14.60B	-9.06B	-7.55B	-10.51B	-7.50B	-13.12B
Financing Cash Flow	-9.42B	-14.54B	749.00M	-2.69B	-4.27B	-1.40B

Meidensha Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5900.00
• 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:6508, the sentiment is Positive. The current price of 5900 is below the 20-day moving average (MA) of 5923.00, above the 50-day MA of 5660.60, and above the 200-day MA of 4586.01, indicating a neutral trend. The MACD of 29.33 indicates Positive momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 53.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6508	75 Outperform	€266.77B	14.87	14.46%	2.09%	5.25%	25.21%
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
FMMFF	―	$1.80B	15.77	6.44%	2.71%	―	―
UHOIF	―	$1.36B	61.54	1.68%	3.27%	―	―
TSB	―	€1.34B	10.36	8.30%	―	―	―
6622	81 Outperform	¥175.91B	14.04		2.11%	18.08%	-18.15%
6507	64 Neutral	¥211.41B	17.70		1.26%	15.05%	38.95%

Meidensha Corporation Corporate Events

Meidensha Corporation Reports Q1 2025 Earnings with Mixed Results

Meidensha Corporation reported its earnings for the three months ended June 30, 2025, showing a 6.2% increase in net sales compared to the previous year. Despite the increase in sales, the net income attributable to owners of the parent decreased by 54.3%, indicating challenges in profitability. The company’s comprehensive income rose by 13.3%, reflecting some positive aspects in its financial performance. The earnings forecast for the fiscal year ending March 31, 2026, anticipates a significant increase in net sales, but a decrease in net income, suggesting ongoing operational challenges.