Meidensha Corporation (6508) AI Stock Analysis

• Market Cap: ¥354.79B
• Dividend Yield: 2.4%
• Average Volume (3M): 144.09K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.07
• Revenue Growth: 8.03%
• EPS Growth: 23.50%
• Country: JP
• Employees: 9,810
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 167.75
• 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: ¥6,883.07
• Price Target Upside: -11.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 421.03
• Revenue Forecast (FY): ¥327.50B

• Rating: 71 Outperform
• Price Target: ¥8,509.00 ▲(8.81% Upside)
• Action: Upgraded Date: 02/01/26
• Date: Action: Upgraded 02/01/26

Overall score is driven primarily by improving profitability and a stronger balance sheet, partially offset by weak/volatile free cash flow. Technicals add support with price above key moving averages and positive MACD, while valuation is favorable with a moderate P/E and solid dividend yield.

Positive Factors

Diversified, recurring business model

Meidensha's mix of product sales, EPC engineering and after-sales maintenance creates diversified and recurring revenue sources. Supplying utilities, public infrastructure and industrial customers reduces single-market exposure and supports stable medium-term revenue visibility despite project timing.

Improved profitability and margins

Material margin expansion alongside sharp TTM top-line momentum suggests better operational leverage and pricing/ mix benefits across equipment and project work. Higher gross and operating margins improve cash flow potential and resilience to cost inflation over the next several quarters.

Stronger balance sheet and returns

Declining leverage and a larger equity base reduce financial risk and increase flexibility to fund capex, working capital or selective M&A. Rising ROE indicates more efficient capital use and supports durable ability to invest in product and service lines over the medium term.

Negative Factors

Weak and volatile free cash flow

Significant drop and historical volatility in free cash flow signal working-capital swings and investment timing risks tied to large projects. Sustained earnings would still require improved cash conversion to reliably fund dividends, capex and debt service without external funding.

Unusually large recent revenue spike

A sharp one-period revenue jump relative to prior mid-single-digit growth raises the risk that near-term top-line strength is driven by project timing or one-offs. If not sustained by recurring demand, forecasts and capacity planning may overstate durable growth.

Absolute debt size remains a risk

Although leverage ratios improved, the company's sizable absolute debt exposes it to refinancing and interest-cost risk if earnings or cash flow falter. This constrains financial flexibility and raises the importance of consistent operating performance to maintain the stronger balance-sheet profile.

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

Income statement strength (Score 78) shows sharp TTM revenue growth (~55%) and improved profitability (gross margin ~27.6%, net margin ~7.1%, EBIT margin ~9.5%). Balance sheet is solid (Score 74) with improving leverage (debt-to-equity ~0.32) and rising ROE (~13.5%). Main drag is cash flow quality (Score 52): free cash flow fell sharply (~65% YoY) with historically volatile conversion, tempering the overall financial score.

Income Statement

TTM (Trailing-Twelve-Months) shows strong top-line momentum (revenue growth ~55%) alongside clear profitability expansion versus prior years: gross margin improved to ~27.6% and net margin to ~7.1% (up from ~6.1% in FY2025 and ~2.6%–3.9% in FY2022–FY2024). Operating profitability also strengthened (EBIT margin ~9.5%, EBITDA margin ~13.2%). Key watchout: the growth rate looks unusually high versus the steadier mid-single-digit trend in prior annual periods, suggesting potential volatility or mix/timing effects.

Balance Sheet

Leverage appears manageable and improving: debt-to-equity is ~0.32 in TTM (Trailing-Twelve-Months) and FY2025, down from ~0.43–0.49 in FY2021–FY2024. Equity has been building over time (FY2021 to TTM), supporting balance-sheet resilience. Returns on equity are solid and trending higher (~13.5% TTM vs ~8.9% FY2024). Main risk: total debt remains sizable in absolute terms, so earnings and cash flow need to stay healthy to preserve the improved leverage profile.

Cash Flow

Cash generation is the weakest area. While operating cash flow is positive in TTM (Trailing-Twelve-Months) (~22.3B), free cash flow dropped sharply (~7.2B) with free cash flow down ~65% versus the prior annual period, and cash conversion is modest (free cash flow is ~33% of net income in TTM vs ~70% in FY2025). The company has also shown variability historically, including negative free cash flow in FY2021 and FY2024, indicating working-capital and/or investment-driven swings.

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	78.51B	68.99B	62.98B	61.12B	57.90B
EBITDA	41.34B	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	44.56B	54.68B	50.51B	48.47B	47.60B
Total Liabilities	200.01B	199.13B	205.30B	196.51B	185.48B	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

• Technical Analysis Sentiment: Positive
• Last Price: 7820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 7820 is above the 20-day moving average (MA) of 7124.50, above the 50-day MA of 6378.00, and above the 200-day MA of 5747.76, indicating a bullish trend. The MACD of 410.71 indicates Negative momentum. The RSI at 72.33 is Negative, neither overbought nor oversold. The STOCH value of 88.95 is Negative, 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
6407	75 Outperform	¥370.54B	28.83	―	2.50%	6.16%	17.11%
6622	73 Outperform	¥328.31B	25.60	―	1.65%	14.49%	-21.17%
6508	71 Outperform	¥354.79B	15.98	14.28%	2.40%	8.03%	23.50%
6268	71 Outperform	¥594.58B	38.64	5.25%	2.13%	-2.23%	130.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6324	58 Neutral	¥438.48B	94.05	5.62%	0.56%	6.22%	―
6481	55 Neutral	¥631.46B	98.88	1.88%	6.16%	1.98%	-48.28%

Meidensha Corporation Corporate Events

Meidensha Lifts FY2025 Dividend Forecast, Signals Confidence in Earnings

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 an interim dividend of 47 yen, and the year-end payout remains subject to approval at the June 2026 shareholders’ meeting.

The move reflects Meidensha’s policy of providing stable and appropriate dividends aligned with earnings, while prioritizing profit returns to shareholders. By raising its dividend guidance, the company signals confidence in its current-year business outlook and underscores its focus on enhancing shareholder equity and improving return on equity.

The most recent analyst rating on (JP:6508) stock is a Buy with a Yen8365.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha Overhauls Executive Lineup and Structure to Sharpen EV and Mobility Focus

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 executives, resulting in a 36-member executive team as of April 1. The company is also implementing related personnel moves and organizational restructuring, signaling an effort to strengthen governance and management capabilities in its EV components and mobility-focused businesses as it adapts its organizational structure to evolving strategic priorities.

The changes elevate key leaders overseeing public and investor relations, accounting and finance, as well as the mobility, electrical components, and EV components business groups, consolidating responsibility and clarifying strategic group leadership. By shifting experienced executives into advisory roles and promoting managers with direct business-line responsibility, Meidensha appears to be aligning its executive structure more closely with growth areas such as EV and mobility, which may influence its competitive positioning and operational agility in these markets.

The most recent analyst rating on (JP:6508) stock is a Buy with a Yen8365.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha Lifts Profit and Full-Year Outlook Despite Lower Orders in FY2025 Q3

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 net income all posting double-digit percentage growth. The company also raised or reaffirmed its full-year fiscal 2025 forecast above fiscal 2024 results for net sales, operating and ordinary income, and profit attributable to owners of the parent, signaling confidence in sustained earnings improvement across its power infrastructure, public and industrial, mobility, field services, and other business segments.

The most recent analyst rating on (JP:6508) stock is a Hold with a Yen6577.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha Lifts Full-Year Outlook After Strong Nine-Month Earnings

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 climbed 23.2% to ¥8.3 billion, while net income attributable to owners of the parent surged 62.5% to ¥9.6 billion, driving basic earnings per share to ¥212.43. The company’s financial position also strengthened, with total assets growing to ¥356.7 billion and the equity ratio improving to 43.0%, reflecting enhanced capital solidity. For the full fiscal year ending March 31, 2026, Meidensha has raised its earnings outlook, now forecasting net sales of ¥325.0 billion, operating income of ¥24.0 billion, and net income attributable to owners of the parent of ¥20.5 billion, indicating expectations of continued growth. The interim dividend for the current fiscal year has been set at ¥47 per share, while the year-end dividend remains undecided, leaving some uncertainty for income-focused shareholders.

The most recent analyst rating on (JP:6508) stock is a Hold with a Yen6577.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.

Meidensha to Sell Tokyo Property, Book ¥5.3 Billion Extraordinary Gain

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 aligned with its Medium-term Management Plan 2027. The transaction, to be completed with an undisclosed domestic corporate buyer at a market-reflective price, is expected to generate approximately ¥5.3 billion in extraordinary income in the nine months ending March 31, 2026, and may lead to revisions of the company’s full-year forecast depending on the overall impact of the sale and related factors.

The most recent analyst rating on (JP:6508) stock is a Hold with a Yen5963.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.