Meidensha Corporation (6508) AI Stock Analysis

• Market Cap: €239.10B
• Dividend Yield: 2.2%
• Average Volume (3M): 241.29K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.09
• Revenue Growth: 4.59%
• EPS Growth: 64.99%
• Country: JP
• Employees: 9,810
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 276.76
• Shares Outstanding: 45,527,540
• 10 Day Avg. Volume: 291,280
• 30 Day Avg. Volume: 241,286
• PEG Ratio: 2.08
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.70
• 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: €4,602.42
• Price Target Upside: -12.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• 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 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 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	301.10B	287.88B	272.58B	255.05B	231.25B
Gross Profit	78.51B	68.99B	62.98B	61.12B	57.90B
EBITDA	35.98B	27.67B	19.70B	22.00B	18.83B
Net Income	18.49B	11.21B	7.13B	6.73B	7.30B
Balance Sheet
Total Assets	341.35B	334.79B	307.39B	290.90B	279.06B
Cash, Cash Equivalents and Short-Term Investments	30.68B	18.98B	14.92B	14.07B	14.31B
Total Debt	44.56B	54.68B	50.51B	48.47B	47.60B
Total Liabilities	199.13B	205.30B	196.51B	185.48B	179.32B
Stockholders Equity	138.78B	126.41B	107.90B	101.97B	96.53B
Cash Flow
Free Cash Flow	24.91B	-375.00M	1.35B	2.48B	-1.01B
Operating Cash Flow	35.45B	8.97B	13.74B	11.39B	14.60B
Investing Cash Flow	-9.06B	-7.55B	-10.51B	-7.50B	-13.12B
Financing Cash Flow	-14.54B	749.00M	-2.69B	-4.27B	-1.40B

Meidensha Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5270.00
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6508	76 Outperform	€239.10B	12.93	14.03%	2.20%	4.59%	64.99%
Sector *	66 Neutral	€4.07B	9.20	18.29%	3.43%	3.84%	-103.41%
FMMFF		$1.74B	23.35	4.82%	2.89%	―	―
UHOIF		$1.10B	26.08	3.09%	3.88%	―	―
TSB		€1.12B	8.08	8.48%	5.17%	―	―
6622	71 Outperform	¥150.62B	13.40		2.50%	20.05%	-26.75%
6507	69 Neutral	¥262.15B	21.69		1.02%	16.07%	61.08%

Meidensha Corporation Corporate Events

Meidensha Corporation Announces Board of Directors Candidates

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

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

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

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

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.