Meiko Electronics Co., Ltd. (6787) AI Stock Analysis

• Market Cap: ¥656.42B
• Dividend Yield: 0.76%
• Average Volume (3M): 135.33K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 1.70
• Revenue Growth: 15.02%
• EPS Growth: 46.62%
• Country: JP
• Employees: 11,912
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 206.67
• Shares Outstanding: 26,803,320
• 10 Day Avg. Volume: 124,390
• 30 Day Avg. Volume: 135,333
• PEG Ratio: 0.36
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -63.97
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 747.78
• Revenue Forecast (FY): ¥233.93B

• Rating: 69 Neutral
• Price Target: ¥27,933.00 ▲(160.81% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily driven by strong financial performance (revenue growth and rising margins) and bullish technical momentum (price above key moving averages, positive MACD). This is offset by elevated valuation (high P/E and low dividend yield) and overbought technical signals (high RSI/Stochastic), which increase downside risk in the near term.

Positive Factors

Revenue growth & margin expansion

Sustained revenue growth (+15.23% YoY) alongside rising gross, EBIT, EBITDA and net margins signals durable demand and improving operational efficiency. Over 2–6 months this underpins greater pricing power, higher incremental profitability on new volumes, and more internal capital to fund growth.

Healthy equity base and high ROE

A strong equity ratio (42.22%) combined with ROE of 13.79% indicates resilient capitalization and efficient use of shareholder capital. This durability supports investment in capacity, tolerates cyclical swings, and reduces solvency risk, enabling long-term execution of manufacturing contracts.

Robust operating cash generation

Consistently strong operating cash flow (¥21.66bn) shows the core PCB/EMS business converts sales into cash reliably. Over months this supports working capital for production programs, funds quality control and process engineering, and provides a buffer versus short-term external financing needs.

Negative Factors

Negative free cash flow

Negative free cash flow suggests capital expenditure or working capital investments exceed operating cash generation. Persistently negative FCF can constrain discretionary spending, require external financing, and limit dividend or buyback capacity, affecting long-term financial flexibility.

Moderate leverage

A debt-to-equity ratio of 0.81 denotes moderate leverage for a manufacturing firm. While not excessive, it raises fixed obligations and reduces covenant headroom, potentially limiting the firm's ability to invest aggressively or absorb demand shocks without raising additional capital.

End-market cyclicality exposure

Revenue dependence on OEM production volumes and PCB demand creates exposure to electronics cycle swings. Structural cyclicality can produce order volatility, underutilized factories and margin pressure over multiple quarters, challenging capacity planning and long-term cash generation predictability.

Meiko Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

Meiko Electronics Co., Ltd. engages in the design, manufacture, and sale of printed circuit boards (PCBs) and auxiliary electronics in Japan, rest of Asia, North America, Europe, and internationally. Its principal products include double-sided/multi-layer through-hole PCBs, HDI PCBs, flexible PCBs, flex-rigid PCBs, high electric current PCBs, heat dissipation PCBs, embedded devices PCBs, solder stencils, PCB testers, and imaging devices and systems. The company also provides circuit design and electronic manufacturing services. Its products have applications in the areas of automobiles, telecommunications, industrial devices, and amusement/home appliances. The company was formerly known as Meiko Denshi Kogyo Co., Ltd. and changed its name to Meiko Electronics Co., Ltd. in April 1991. Meiko Electronics Co., Ltd. was founded in 1975 and is headquartered in Ayase, Japan.

How the Company Makes Money

Meiko Electronics generates revenue primarily through the production and sale of printed circuit boards (PCBs) to various industries, including automotive, telecommunications, and consumer electronics. The company's revenue model is largely driven by custom PCB manufacturing services, which involve working closely with clients to develop tailored solutions that meet specific design and performance requirements. In addition to PCB sales, Meiko also benefits from long-term contracts with major clients, ensuring a steady stream of income. Partnerships with key players in the electronics supply chain further enhance its market position, allowing the company to leverage collaborative opportunities and access new markets, ultimately contributing to its financial stability and growth.

Meiko Electronics Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (+15.23%) and improving profitability (gross margin 19.23%, net margin 7.21%; higher EBIT/EBITDA margins) support a high score. Balance sheet is solid with a 42.22% equity ratio and strong ROE (13.79%), but moderate leverage (D/E 0.81) and negative free cash flow temper the result.

Income Statement

Meiko Electronics Co., Ltd. has shown strong revenue growth with a 15.23% increase from the previous year and consistent improvement in gross and net profit margins. The gross profit margin increased to 19.23%, and the net profit margin to 7.21%. EBIT and EBITDA margins also improved to 9.23% and 16.28%, respectively, indicating enhanced operational efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 42.22%. However, the debt-to-equity ratio stands at 0.81, suggesting moderate leverage. Return on equity is impressive at 13.79%, reflecting effective use of shareholders' equity to generate profits.

Cash Flow

Operating cash flow remains robust at ¥21.66 billion, although free cash flow has turned negative. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net earnings. However, the negative free cash flow highlights potential challenges in managing capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	212.87B	206.81B	179.46B	167.28B	151.28B	119.26B
Gross Profit	42.93B	39.78B	31.39B	26.02B	27.39B	17.52B
EBITDA	33.76B	33.67B	26.85B	21.83B	21.29B	13.82B
Net Income	15.64B	14.93B	11.31B	8.85B	11.45B	4.64B
Balance Sheet
Total Assets	280.37B	256.37B	229.96B	202.39B	168.33B	142.04B
Cash, Cash Equivalents and Short-Term Investments	33.64B	23.15B	21.60B	17.58B	10.70B	12.37B
Total Debt	113.34B	87.57B	79.26B	75.79B	67.00B	68.31B
Total Liabilities	166.06B	140.76B	124.50B	117.92B	109.64B	101.43B
Stockholders Equity	106.90B	108.24B	98.18B	77.32B	58.49B	40.42B
Cash Flow
Free Cash Flow	0.00	-2.74B	1.68B	-3.39B	2.00B	-2.10B
Operating Cash Flow	0.00	21.66B	23.36B	15.71B	13.97B	7.85B
Investing Cash Flow	0.00	-24.33B	-21.59B	-29.04B	-11.79B	-9.49B
Financing Cash Flow	0.00	4.14B	681.00M	19.96B	-4.73B	-618.00M

Meiko Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10710.00
• 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:6787, the sentiment is Positive. The current price of 10710 is below the 20-day moving average (MA) of 18281.50, below the 50-day MA of 13647.00, and above the 200-day MA of 9781.06, indicating a bullish trend. The MACD of 2646.07 indicates Negative momentum. The RSI at 81.37 is Negative, neither overbought nor oversold. The STOCH value of 81.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6787.

Meiko Electronics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6951	78 Outperform	¥346.82B	21.69	―	2.04%	-0.69%	-29.88%
6814	76 Outperform	¥241.29B	15.44	―	1.88%	6.56%	106.55%
6787	69 Neutral	¥656.42B	32.87	―	0.76%	15.02%	46.62%
6807	64 Neutral	¥184.08B	24.55	5.91%	2.39%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Meiko Electronics Co., Ltd. Corporate Events

Meiko Electronics Issues FY2025 Financial Results Briefing with Risk Cautions

Meiko Electronics has released a briefing for its FY2025 financial results, noting that the materials provided include forward-looking statements based on current assumptions and information rather than historical facts. The company underscores that its PCB business is exposed to multiple external risks and uncertainties, warning that actual performance may differ significantly from expectations, and clarifies that the English version of the document is a reference translation with the Japanese original taking precedence.

The most recent analyst rating on (JP:6787) stock is a Buy with a Yen16065.00 price target. To see the full list of analyst forecasts on Meiko Electronics Co., Ltd. stock, see the JP:6787 Stock Forecast page.

Meiko Electronics Lifts FY2025 Earnings and Dividend Forecast on Strong HDI PCB Demand

Meiko Electronics has raised its full‑year fiscal 2025 consolidated earnings forecast, projecting net sales of ¥235 billion and net profit attributable to owners of the parent of ¥20 billion, up 5.4% and 11.1% respectively from its previous outlook, with earnings per share now expected at ¥767.10. The company attributes the upgraded guidance to robust orders for HDI PCBs, which are driving higher profitability, and to the continued depreciation of the yen, and in tandem it has lifted its year‑end dividend forecast from ¥45 to ¥70 per share, taking the expected total annual dividend to ¥115, signaling stronger shareholder returns backed by improved operating performance.

The most recent analyst rating on (JP:6787) stock is a Buy with a Yen16065.00 price target. To see the full list of analyst forecasts on Meiko Electronics Co., Ltd. stock, see the JP:6787 Stock Forecast page.

Meiko Electronics Lifts Earnings and Dividend Outlook on Strong Nine-Month Results

Meiko Electronics reported strong consolidated results for the nine months ended 31 December 2025, with net sales up 13.4% year on year to ¥172.0 billion and profit attributable to owners of parent rising 17.7% to ¥14.8 billion, alongside an improvement in basic earnings per share to ¥566.66. The balance sheet expanded significantly, with total assets increasing to ¥327.6 billion and net assets to ¥135.2 billion, although the equity ratio dipped to 39.0%, while the company raised its full-year dividend forecast to a total of ¥115 per share and projected double‑digit growth for the full fiscal year, signaling confidence in continued earnings momentum and an enhanced return to shareholders.

The most recent analyst rating on (JP:6787) stock is a Buy with a Yen16065.00 price target. To see the full list of analyst forecasts on Meiko Electronics Co., Ltd. stock, see the JP:6787 Stock Forecast page.