Meidensha Corporation (6508) AI Stock Analysis

• Market Cap: ¥251.80B
• Dividend Yield: 2.4%
• Average Volume (3M): 144.09K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.03
• Revenue Growth: 8.03%
• EPS Growth: 23.50%
• Country: JP
• Employees: 9,810
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 34.42
• Shares Outstanding: 45,527,540
• 10 Day Avg. Volume: 193,880
• 30 Day Avg. Volume: 144,090
• PEG Ratio: 0.16
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 7.86
• 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: ¥6,400.81
• Price Target Upside: 15.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥5,963.00 ▲(7.44% Upside)

Meidensha Corporation's overall stock score is driven by solid financial performance and a fair valuation. However, technical indicators suggest a lack of strong market momentum, which slightly dampens the overall score. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business strategies, supporting long-term sustainability.

Operational Efficiency

Enhanced operational efficiency reflects effective cost management and strengthens profitability, contributing to durable competitive advantage.

Balance Sheet Health

Prudent financial leverage and strong equity returns indicate a solid financial foundation, ensuring resilience and capacity for growth.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow can limit the company's ability to invest in growth opportunities and meet financial obligations, posing long-term challenges.

Net Profit Margin Pressure

Decreasing net profit margins may indicate rising costs or pricing pressures, potentially impacting overall profitability and financial health.

Debt Increase

Increasing debt levels, if not managed carefully, could strain financial resources and impact the company's long-term financial stability.

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 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 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 with utility companies and government entities, providing a stable revenue stream. Additionally, Meidensha engages in maintenance and service contracts, which offer recurring income. The company's focus on innovation and technological advancements has led to partnerships with other firms and institutions, enhancing its market position and contributing to revenue growth through collaborative projects and joint ventures in sectors such as renewable energy and smart infrastructure.

Meidensha Corporation Financial Statement Overview

Summary

Meidensha Corporation exhibits strong financial health with robust revenue growth and profitability. The balance sheet is solid, with manageable debt levels and strong returns on equity. While cash flow generation is generally healthy, the recent decline in free cash flow growth warrants attention.

Income Statement

Meidensha Corporation demonstrates strong revenue growth with a TTM revenue growth rate of 13.4%, indicating robust demand for its products. The gross profit margin of 27.1% and net profit margin of 6.1% reflect efficient cost management and profitability. The EBIT and EBITDA margins are healthy at 7.6% and 10.5%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.32, indicating prudent leverage management. The return on equity of 14.3% is impressive, reflecting effective use of shareholder funds. The equity ratio of 42.2% suggests a stable capital structure, although there is room for improvement in asset utilization.

Cash Flow

Operating cash flow is strong, with a ratio of 2.0 to net income, indicating good cash generation from operations. However, the free cash flow growth rate is negative at -6.2%, which could be a concern if it persists. The free cash flow to net income ratio of 0.70 suggests adequate cash flow coverage, but monitoring is advised.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	312.14B	301.10B	287.88B	272.58B	255.05B	231.25B
Gross Profit	85.23B	78.51B	68.99B	62.98B	61.12B	57.90B
EBITDA	34.39B	35.98B	27.67B	22.38B	23.08B	22.23B
Net Income	18.42B	18.49B	11.21B	7.13B	6.73B	7.30B
Balance Sheet
Total Assets	328.99B	341.35B	334.79B	307.39B	290.90B	279.06B
Cash, Cash Equivalents and Short-Term Investments	29.23B	30.68B	18.98B	14.92B	14.07B	14.31B
Total Debt	36.53B	44.56B	54.68B	50.51B	48.47B	47.60B
Total Liabilities	183.01B	199.13B	205.30B	196.51B	185.48B	179.32B
Stockholders Equity	142.53B	138.78B	126.41B	107.90B	101.97B	96.53B
Cash Flow
Free Cash Flow	20.77B	24.91B	-375.00M	1.35B	2.48B	-1.01B
Operating Cash Flow	33.45B	35.45B	8.97B	13.74B	11.39B	14.60B
Investing Cash Flow	-14.91B	-9.06B	-7.55B	-10.51B	-7.50B	-13.12B
Financing Cash Flow	-13.13B	-14.54B	749.00M	-2.69B	-4.27B	-1.40B

Meidensha Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5550.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6508, the sentiment is Negative. The current price of 5550 is below the 20-day moving average (MA) of 5604.00, below the 50-day MA of 5955.60, and above the 200-day MA of 5163.41, indicating a neutral trend. The MACD of -115.93 indicates Negative momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 28.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6508.

Meidensha Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6134	77 Outperform	¥347.78B	21.84	6.46%	2.22%	12.95%	46.98%
6371	74 Outperform	¥237.50B	10.40	8.83%	3.85%	1.48%	8.86%
6508	64 Neutral	¥251.80B	13.87	14.28%	2.40%	8.03%	23.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6507	63 Neutral	¥264.12B	21.37	―	1.01%	14.47%	30.85%
6622	63 Neutral	¥230.60B	18.87	―	1.73%	14.49%	-21.17%
6925	59 Neutral	¥224.79B	46.82	2.20%	2.80%	-3.70%	-36.38%

Meidensha Corporation Corporate Events

Meidensha Corporation Reports Higher-Than-Expected Interim Profits

Meidensha Corporation announced a variance between its forecasted and actual financial results for the six months ending September 30, 2025. The company reported higher-than-expected profits due to earlier revenue recognition in its Field Service Engineering business and favorable foreign exchange impacts in its Substation business, despite a slight decrease in net sales compared to forecasts.

Meidensha Corporation Reports FY 2025 First Half Financial Results

Meidensha Corporation reported its financial results for the first half of FY 2025, showing a decrease in orders but an increase in net sales and operating income compared to the previous year. The company’s performance highlights a strategic focus on enhancing operational efficiency and market positioning, despite a slight decline in net income attributable to owners of the parent.

Meidensha Corporation Reports Strong Interim Financial Results for 2025

Meidensha Corporation reported a significant increase in its operating and ordinary income for the six months ending September 30, 2025, with net sales rising by 9.2% compared to the previous year. Despite a slight decline in net income attributable to owners, the company’s equity ratio improved, indicating a stronger financial position. The company announced an increase in dividends, reflecting confidence in its financial stability and future prospects.