Meiwa Corporation (8103) AI Stock Analysis

• Market Cap: ¥36.49B
• Dividend Yield: 4.05%
• Average Volume (3M): 117.26K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.71
• Revenue Growth: -3.82%
• EPS Growth: 18.03%
• Country: JP
• Employees: 518
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 16.53
• Shares Outstanding: 40,332,400
• 10 Day Avg. Volume: 112,510
• 30 Day Avg. Volume: 117,260
• PEG Ratio: 0.32
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 6.78
• 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: 76 Outperform
• Price Target: ¥1,171.00 ▲(23.78% Upside)

The score is driven primarily by strong financial quality (low leverage, solid profitability, and healthy free cash flow) and supportive valuation (moderate P/E and a 3.57% dividend yield). Technicals are positive on trend but capped by overbought momentum signals (high RSI/Stoch), which raises near-term volatility risk.

Positive Factors

Very low leverage

Extremely low debt reduces financial risk and preserves strategic optionality. With minimal leverage the company can sustain dividends, fund working capital or opportunistic M&A without stressing the balance sheet, providing durable financial flexibility over months.

Strong free cash flow generation

FCF materially exceeding net income indicates high cash conversion and internal funding capacity. This bolsters the company's ability to cover dividends, reinvest in operations and absorb short-term shocks, supporting sustainable capital allocation over the coming quarters.

Improving profitability margins

Improved gross and net margins reflect effective cost control and pricing discipline in distribution operations. Sustained margin improvement enhances earnings resilience versus revenue swings and supports free cash flow durability over a multi-month horizon.

Negative Factors

Slight revenue contraction

Modest decline in top-line indicates potential demand softness or lost share. Even small persistent revenue weakness can erode operating leverage in distribution, limiting reinvestment capacity and making margin maintenance harder over the next several quarters.

Declining operating cash flow

A drop in operating cash flow, even with healthy FCF, reduces the near-term liquidity buffer. If operating cash flow deterioration continues it could constrain working capital, capex or dividend flexibility and raise funding needs within a 2-6 month window.

Thin operating/EBITDA margins

Low EBITDA and operating margins leave little cushion against cost inflation, supplier pressure or price competition. In a distribution business with tight margins, small adverse moves in costs or volumes can materially compress profitability over the medium term.

Meiwa Corporation Business Overview & Revenue Model

Company Description

Meiwa Corporation engages in the chemicals, lubricants, battery materials, automotive-related and mineral resource, and environmental-related businesses in Japan and internationally. Its battery materials include raw materials for primary components, such as cathode materials, anode materials, electrolytic solutions and separators, and intermediate products and finished goods. The company also offers mineral resources comprising rare earth elements, rare metals, environmental products, metal products, activated carbon, quartz, inorganic raw materials, pharmaceutical intermediate, and others; resins and flame retardants, including resin materials span, such as automotive, electrical/electronics, food packaging materials, residential construction materials, and daily goods; and environmental services, which deals with materials used in water processing environments. In addition, it provides pharmaceutical materials; petroleum products, such as fuel, heavy fuel oil, lubricating oil and grease, base oil, lubricant additives, solvents, asphalt, rubber compounding oil, and others, as well as develops petroleum-related businesses in Southeast Asia; and construction materials, including waterproof materials, heat-insulating materials/subsidiary materials, interior trim materials, internal store trim materials, flooring materials, wooden packaging materials, and residential fittings. Further, the company sells general chemical raw materials, such as polymer raw materials; urethane raw materials; resin for coatings; FRP raw materials; high-precision chemical products comprising organic chemicals and fillers for optics and electronics; and inorganic chemical products, including inorganic fibers. Additionally, it offers general automotive parts and materials, such as synthetic resin products, trim parts, cast products, etc., as well as raw materials. Meiwa Corporation was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Meiwa Corporation generates revenue through multiple channels, primarily by acting as a trading company that sources and supplies products to various industries. Key revenue streams include the sale of textiles, chemicals, and industrial materials. The company also engages in manufacturing certain products, which allows for higher margins compared to pure trading. Additionally, Meiwa has established significant partnerships with manufacturers and suppliers, enabling it to offer competitive pricing and a broad product range. The company's ability to adapt to market trends and customer needs further contributes to its earnings, as does its focus on expanding its global footprint in emerging markets.

Meiwa Corporation Financial Statement Overview

Summary

Strong overall fundamentals: healthy profitability (gross margin 8.01%, net margin 2.16%), very low leverage (debt-to-equity 0.04) and a solid equity base (equity ratio 51.53%). Offsetting factors include slightly negative revenue growth (-0.98%) and a decline in operating cash flow (¥4,334m), though free cash flow remains robust (¥4,162m) and well-covered versus net income (FCF/NI 1.23).

Income Statement

Meiwa Corporation has demonstrated strong financial performance with increasing revenues and healthy profit margins. The gross profit margin improved to 8.01% in 2025, reflecting effective cost management. The net profit margin also increased to 2.16%, supported by a consistent EBIT margin of 2.28% and an EBITDA margin of 3.20%. Revenue growth from 2024 to 2025 was slightly negative at -0.98%, but the company has shown resilience in maintaining profitability.

Balance Sheet

The company's balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.04, indicating low leverage risk. The return on equity (ROE) has improved to 8.78%, showcasing efficient utilization of equity to generate profits. The equity ratio stands at 51.53%, highlighting a strong equity base supporting the company's assets.

Cash Flow

Operating cash flow decreased to ¥4,334 million in 2025, but free cash flow remained robust at ¥4,162 million. The free cash flow to net income ratio was healthy at 1.23, indicating strong cash generation relative to net income. However, the drop in operating cash flow requires monitoring to ensure future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.81B	156.73B	158.28B	156.66B	143.03B	130.20B
Gross Profit	13.29B	12.55B	11.55B	11.70B	10.89B	9.31B
EBITDA	5.62B	5.01B	4.39B	3.59B	3.93B	2.08B
Net Income	3.60B	3.38B	2.75B	1.72B	2.41B	1.20B
Balance Sheet
Total Assets	75.10B	74.63B	85.36B	80.72B	76.42B	70.05B
Cash, Cash Equivalents and Short-Term Investments	8.51B	8.38B	9.60B	8.42B	5.25B	9.44B
Total Debt	3.60B	1.60B	4.99B	7.95B	6.44B	4.37B
Total Liabilities	36.74B	35.72B	46.57B	44.80B	40.45B	35.34B
Stockholders Equity	37.76B	38.47B	38.31B	35.48B	35.68B	34.43B
Cash Flow
Free Cash Flow	0.00	4.16B	5.43B	4.01B	-3.38B	3.96B
Operating Cash Flow	0.00	4.33B	5.66B	4.07B	-3.31B	4.49B
Investing Cash Flow	0.00	350.00M	-202.00M	804.00M	-320.00M	-542.00M
Financing Cash Flow	0.00	-5.81B	-4.35B	-1.72B	-670.00M	-1.65B

Meiwa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 946.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8103, the sentiment is Positive. The current price of 946 is below the 20-day moving average (MA) of 980.90, above the 50-day MA of 923.20, and above the 200-day MA of 796.39, indicating a neutral trend. The MACD of 2.80 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8103.

Meiwa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	79 Outperform	¥38.24B	9.37	―	1.78%	-0.94%	51.59%
8103	76 Outperform	¥36.49B	11.71	―	4.05%	-3.82%	18.03%
8147	76 Outperform	¥7.02B	10.05	―	1.69%	11.54%	33.71%
8052	73 Outperform	¥54.59B	10.92	―	3.00%	16.06%	31.78%
7628	66 Neutral	¥28.94B	12.97	―	2.98%	-2.82%	48.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	63 Neutral	¥22.93B	6.66	―	3.55%	12.31%	90.88%

Meiwa Corporation Corporate Events

Meiwa Corporation’s Q2 Financial Performance: Income Rises Amid Sales Decline

Meiwa Corporation reported a 1.8% decline in net sales for the second quarter of the fiscal year ending March 2026, while income rose by 14.4%. The company experienced strong sales in Business Division 1, stable sales in Business Division 3, but sluggish performance in Business Division 2 and the Battery & Automotive Division. Despite market calm and foreign exchange losses, operating income increased due to high-margin product sales, aligning with forecasts for a net income of ¥3.0 billion and maintaining a projected dividend of ¥38 per share.

The most recent analyst rating on (JP:8103) stock is a Buy with a Yen1013.00 price target. To see the full list of analyst forecasts on Meiwa Corporation stock, see the JP:8103 Stock Forecast page.