Meiwa Industry Co., Ltd. (7284) AI Stock Analysis

• Market Cap: ¥4.19B
• Dividend Yield: 4.18%
• Average Volume (3M): 3.52K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.45
• Revenue Growth: 4.93%
• EPS Growth: N/A
• Country: JP
• Employees: 449
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Parts
• EPS (TTM): 3.59
• Shares Outstanding: 3,502,859
• 10 Day Avg. Volume: 2,850
• 30 Day Avg. Volume: 3,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,389.00
• Price Target Upside: 16.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,389.00 ▲(16.14% Upside)

Meiwa Industry's stock is supported mainly by its attractive valuation and strong recovery in financial performance. However, liquidity concerns from negative free cash flow and potential technical overbought conditions could pose short-term risks. Investors should consider these factors, especially the need for improved cash flow management and possible market pullbacks.

Meiwa Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Meiwa Industry Co., Ltd. (7284) is a Japanese company primarily engaged in the manufacture and sale of automotive components. The company focuses on producing a wide array of parts including interior and exterior automotive components, and engages in activities related to vehicle safety and performance enhancement. Meiwa Industry serves a diverse clientele in the automotive sector, supplying parts to major automobile manufacturers.

How the Company Makes Money

Meiwa Industry Co., Ltd. generates revenue through the production and sale of automotive components. The company's key revenue streams include sales of interior and exterior automotive parts which are supplied to prominent automobile manufacturers. Meiwa Industry benefits from long-term contracts and partnerships with these manufacturers, ensuring a steady demand for their products. Additionally, the company invests in research and development to innovate and improve their product offerings, which helps in maintaining competitive pricing and securing market share in the automotive components industry.

Meiwa Industry Co., Ltd. Financial Statement Overview

Summary

Meiwa Industry Co., Ltd. shows a positive recovery in revenue and profitability, with improved leverage and a strong equity base. However, negative free cash flow and challenges in cash generation highlight liquidity concerns, necessitating better cash flow management.

Income Statement

Meiwa Industry Co., Ltd. exhibits a positive trend in revenue growth, achieving an 18.6% increase in 2025 over the previous year. The gross profit margin improved significantly to 14.96% in 2025, indicating better cost management. Furthermore, the company turned around from a net loss in 2024 to a net profit in 2025, with a net profit margin of 1.95%. However, EBIT and EBITDA margins of 2.17% and 6.84% respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio decreasing to 0.53 in 2025, showing improved leverage management. The return on equity (ROE) improved to 3.77% in 2025, demonstrating a better utilization of equity. The equity ratio of 48.08% indicates a strong equity base, enhancing financial stability. However, the overall leverage still presents a potential risk if not managed carefully.

Cash Flow

Meiwa Industry's cash flow situation shows some challenges. Although the operating cash flow is positive, the free cash flow remains negative at -1.02 billion yen in 2025, highlighting potential issues in liquidity management. The operating cash flow to net income ratio is 0.24, suggesting that cash generation from operations is weak relative to net income. The company needs to enhance its cash flow management to ensure sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.25B	23.25B	22.39B	21.20B	19.68B	18.31B
Gross Profit	3.48B	3.48B	2.51B	2.95B	3.02B	2.26B
EBITDA	1.57B	1.59B	639.88M	874.49M	1.23B	339.03M
Net Income	452.23M	452.88M	-305.54M	-73.83M	307.54M	-1.03B
Balance Sheet
Total Assets	24.98B	24.98B	24.77B	23.50B	23.04B	21.99B
Cash, Cash Equivalents and Short-Term Investments	3.57B	3.57B	4.46B	3.38B	3.86B	3.29B
Total Debt	6.40B	6.40B	6.60B	5.63B	5.38B	5.07B
Total Liabilities	12.97B	12.97B	13.75B	12.44B	12.27B	11.79B
Stockholders Equity	12.00B	12.00B	11.02B	11.07B	10.78B	10.20B
Cash Flow
Free Cash Flow	0.00	-1.02B	-334.18M	-413.35M	-71.62M	-938.16M
Operating Cash Flow	0.00	106.82M	560.31M	685.54M	661.24M	446.46M
Investing Cash Flow	0.00	-877.45M	-409.17M	-1.12B	-148.12M	-1.25B
Financing Cash Flow	0.00	-331.54M	811.15M	-192.51M	-82.88M	555.28M

Meiwa Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1196.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7284, the sentiment is Neutral. The current price of 1196 is below the 20-day moving average (MA) of 1200.80, above the 50-day MA of 1195.08, and above the 200-day MA of 1140.40, indicating a neutral trend. The MACD of 0.97 indicates Positive momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7284.

Meiwa Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5189	77 Outperform	¥4.51B	9.72		2.63%	-2.63%	-27.45%
7217	75 Outperform	¥3.82B	18.04		4.39%	9.12%	-35.97%
7219	73 Outperform	¥3.05B	8.71		3.02%	1.42%	-20.24%
7284	66 Neutral	¥4.19B	7.28		4.18%	4.93%	―
7215	64 Neutral	¥3.60B	11.15		―	-4.36%	―
Sector *	61 Neutral	$17.92B	12.81	-2.97%	2.98%	1.30%	-14.28%
7256	39 Underperform	¥4.37B	―		―	33.86%	69.12%