Meidensha Corporation (6508) AI Stock Analysis

• Market Cap: ¥274.03B
• Dividend Yield: 2.4%
• Average Volume (3M): 144.09K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.06
• 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: ¥5,799.45
• Price Target Upside: -3.98% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥6,674.00 ▲(10.50% Upside)

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 business model & recurring services

Meidensha sells equipment, executes EPC projects and provides after-sales maintenance, creating multiple revenue pillars and an installed base that generates repeat service revenue. This reduces dependence on single-project cycles and supports steadier long-term cashflows and customer lock-in.

Strong recent revenue and margin expansion

Sharp TTM top-line growth alongside expanding gross and operating margins indicates improving product mix, pricing or execution. Sustained margin expansion supports reinvestment and debt reduction, improving resilience and enabling strategic investments over the medium term.

Improving leverage profile and ROE

Declining leverage and rising equity provide greater balance-sheet flexibility. A mid-teens ROE demonstrates effective capital use, which supports funding of projects and dividends without excessive reliance on new debt if profitability and cash generation remain stable.

Negative Factors

Volatile and weakened free cash flow

Large swings and a recent sharp drop in free cash flow constrain the company's ability to fund capex, pay down debt, or sustain shareholder returns without external financing. Persistent volatility suggests working-capital or project-timing risks that can impair financial flexibility.

Revenue growth may be project/mix-driven and uneven

The outsized recent growth likely reflects timing or concentration of large projects rather than steady demand expansion. Given the EPC and bespoke nature of its business, order timing and project mix can produce lumpy results, raising uncertainty about sustaining current growth and margins.

Absolute debt level remains sizable

Although leverage ratios improved, the company still carries substantial absolute debt. With volatile FCF and project-driven revenues, maintaining healthy earnings and cash conversion is essential to avoid refinancing pressure or constraints on capex and M&A over the medium term.

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 demonstrates strong revenue growth and operational efficiency, with improving gross profit margins and stable EBIT and EBITDA margins. The balance sheet shows a solid financial position with manageable leverage and strong equity returns. However, the decline in free cash flow growth highlights potential cash management challenges.

Income Statement

Meidensha Corporation shows a solid revenue growth trajectory with a TTM growth rate of 2.5%. The gross profit margin has improved to 27.4% in the TTM, indicating efficient cost management. However, the net profit margin slightly decreased to 5.9% from the previous annual report's 6.1%, suggesting some pressure on net profitability. EBIT and EBITDA margins remain healthy, reflecting strong operational performance.

Balance Sheet

The company maintains a stable debt-to-equity ratio of 0.28 in the TTM, showing prudent financial leverage. Return on equity is robust at 13.6%, indicating effective use of equity capital. The equity ratio is healthy, suggesting a strong equity base relative to total assets. However, the slight increase in total debt over time could pose a risk if not managed carefully.

Cash Flow

Operating cash flow remains strong, but free cash flow has declined by 11.07% in the TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is 0.35, showing adequate cash conversion. The free cash flow to net income ratio is 0.66, suggesting a decent level of free cash flow relative to net income, though it has decreased from previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 6040.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 6040 is above the 20-day moving average (MA) of 6023.50, above the 50-day MA of 5776.60, and above the 200-day MA of 5413.88, indicating a bullish trend. The MACD of 103.62 indicates Negative momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 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
6371	74 Outperform	¥248.42B	10.90	8.83%	3.85%	1.48%	8.86%
6507	74 Outperform	¥294.00B	23.79	―	1.01%	14.47%	30.85%
6622	73 Outperform	¥264.78B	21.66	―	1.65%	14.49%	-21.17%
6508	71 Outperform	¥274.03B	12.35	14.28%	2.40%	8.03%	23.50%
6134	69 Neutral	¥367.27B	23.07	6.46%	2.22%	12.95%	46.98%
6925	69 Neutral	¥249.46B	52.00	2.20%	2.81%	-3.70%	-36.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Meidensha Corporation Corporate Events

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.