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

• Market Cap: ¥4.22B
• Dividend Yield: 4.08%
• Average Volume (3M): 1.95K
• Price to Earnings (P/E): 60.4
• Beta (1Y): 0.43
• Revenue Growth: 3.46%
• EPS Growth: N/A
• Country: JP
• Employees: 449
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 5.06
• Shares Outstanding: 3,502,859
• 10 Day Avg. Volume: 1,770
• 30 Day Avg. Volume: 1,953
• PEG Ratio: -0.03
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -3.80
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,309.00 ▲(7.12% Upside)
• Action: Upgraded Date: 10/09/25
• Date: Action: Upgraded 10/09/25

Meiwa Industry's stock score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, making it attractive for value investors. The technical analysis supports a positive trend, although cash flow management remains a concern. The company's financial performance shows improvement, but liquidity issues need addressing to sustain growth.

Positive Factors

Revenue Growth

The company achieved an 18.6% revenue increase in 2025, indicating strong market demand and effective sales strategies, supporting long-term growth.

Balance Sheet Health

Improved leverage management and a strong equity base enhance financial stability, providing a solid foundation for future investments and growth.

Profitability Improvement

Better cost management and a return to net profitability demonstrate effective operational strategies, enhancing long-term financial health.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could constrain the company's ability to invest in growth opportunities.

Operational Efficiency

Low operational margins indicate inefficiencies that may hinder profitability, necessitating improvements in cost control and operational processes.

Cash Generation Ability

Weak cash generation relative to net income suggests challenges in converting profits into cash, potentially impacting financial flexibility.

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

Company Description

Meiwa Industry Co., Ltd. manufactures and sells automotive interior parts in Japan. It offers automotive interior components under the Shiko, Zem-Light, Zem-Light SPS, and Meitone brand names for use in various areas, such as trunk, floor mats, and roofs of sedans, wagons, SUVs, minivans, small cars, and trucks. The company also manufactures and sells home construction materials and devices comprising floor materials, housing equipment parts, sound insulation/soundproof material, and water shield/water stop material. Meiwa Industry Co., Ltd. was incorporated in 1950 and is headquartered in Atsugi, Japan.

How the Company Makes Money

Meiwa Industry Co., Ltd. generates revenue primarily through the sale of its industrial machinery and precision components. The company's revenue model is built on several key streams, including the direct sale of manufactured products to OEMs (Original Equipment Manufacturers) in the automotive and electronics sectors, as well as contract manufacturing services for clients seeking customized solutions. Additionally, the company may engage in partnerships with other manufacturers and suppliers, enhancing its market reach and operational capabilities. Factors contributing to its earnings include the demand for high-quality precision parts, advancements in manufacturing technology, and the company's ability to innovate and adapt to market needs.

Meiwa Industry Co., Ltd. Financial Statement Overview

Summary

Meiwa Industry shows a positive revenue growth and improved profitability, with a return to net profit in 2025. The balance sheet is stable with improved leverage and a strong equity base. However, cash flow management is a concern due to negative free cash flow, indicating potential liquidity issues.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.56B	23.25B	22.39B	21.20B	19.68B	18.31B
Gross Profit	3.63B	3.48B	2.51B	2.95B	3.02B	2.26B
EBITDA	1.59B	1.42B	452.45M	930.93M	1.05B	715.38M
Net Income	575.16M	452.88M	-305.54M	-73.83M	307.54M	-1.03B
Balance Sheet
Total Assets	24.29B	25.19B	24.98B	23.68B	23.21B	22.17B
Cash, Cash Equivalents and Short-Term Investments	3.27B	3.57B	4.46B	3.38B	3.86B	3.29B
Total Debt	6.25B	6.40B	6.60B	5.63B	5.46B	5.22B
Total Liabilities	12.76B	13.18B	13.96B	12.62B	12.44B	11.97B
Stockholders Equity	11.53B	12.00B	11.02B	11.07B	10.78B	10.20B
Cash Flow
Free Cash Flow	0.00	-1.02B	-331.44M	-393.27M	-52.55M	-923.73M
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: Positive
• Last Price: 1222.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7284, the sentiment is Positive. The current price of 1222 is above the 20-day moving average (MA) of 1200.95, above the 50-day MA of 1207.24, and above the 200-day MA of 1183.18, indicating a neutral trend. The MACD of -2.10 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 70.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7284	71 Outperform	¥4.22B	60.43	―	4.08%	3.46%	―
7220	71 Outperform	¥176.15B	-8.32	―	1.93%	-3.23%	24.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7215	59 Neutral	¥3.51B	10.65	―	―	-9.58%	―
7214	58 Neutral	¥5.09B	2.75	―	4.51%	0.61%	-453.99%
7277	56 Neutral	¥11.98B	8.29	―	2.23%	-4.06%	―
7212	54 Neutral	¥13.79B	3.20	―	2.45%	-2.67%	33.63%