Meiho Enterprise Co., Ltd. (8927) AI Stock Analysis

• Market Cap: ¥13.25B
• Dividend Yield: 2.85%
• Average Volume (3M): 272.15K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.74
• Revenue Growth: 20.54%
• EPS Growth: 8.92%
• Country: JP
• Employees: 154
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 24.56
• Shares Outstanding: 31,584,600
• 10 Day Avg. Volume: 186,090
• 30 Day Avg. Volume: 272,150
• PEG Ratio: 0.17
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.35
• 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: 62 Neutral
• Price Target: ¥470.00 ▲(7.06% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

The overall stock score is primarily driven by strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Sustained high revenue growth indicates expanding business scale and demand for the company’s real-estate offerings. Over 2-6 months this supports stronger cash generation, better coverage of fixed costs, and greater reinvestment capacity to fund projects or improve margins.

Improving Leverage and High ROE

A meaningful reduction in leverage combined with near-20% ROE signals improved capital efficiency and risk management. This durable improvement bolsters financial flexibility, lowers financing risk over the medium term, and sustains shareholder returns if maintained.

Cash Flow Recovery

Transitioning to positive free cash flow demonstrates better cash conversion and operational discipline. Persisting positive FCF supports debt reduction, capex funding, and potential distributions, improving the company’s resilience over coming quarters.

Negative Factors

Elevated Leverage Remains

Although leverage has improved, a D/E around 1.67 still leaves the company exposed to interest rate and cyclical real estate risk. Elevated debt limits strategic flexibility, increases refinancing needs, and could pressure cash flow during downturns.

Incomplete Cash Conversion

Earnings that do not fully convert to cash reduce internal funding capacity. Over the medium term this can constrain capex, debt paydown, or dividends, forcing reliance on external financing and limiting the company’s ability to act on strategic opportunities.

Moderate Margins with Slight Decline

Relatively modest net margins and a small drop in gross margin reduce the margin buffer against cost inflation or revenue slowdown. Persistently moderate margins limit free cash flow upside and reduce the firm’s cushion versus competitors in adverse cycles.

Meiho Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Meiho Enterprise Co., Ltd. engages in the real estate business in Japan. It operates through Real Estate Sales Business, Real Estate Leasing Business, Real Estate Brokerage Business, and Contracting Business segments. The company is involved in the sale, rental, lease, and intermediation of real estate properties, including apartments, condominiums, and townhouses. Meiho Enterprise Co., Ltd. offers its real estate properties under the MIJAS and EL FARO brands. The company was incorporated in 1968 and is headquartered in Tokyo, Japan.

Meiho Enterprise Co., Ltd. Financial Statement Overview

Summary

Meiho Enterprise Co., Ltd. shows strong revenue growth and stable profitability. Improvements in leverage and cash flow management are positive, but high leverage and cash flow efficiency remain areas for improvement.

Income Statement

Meiho Enterprise Co., Ltd. has demonstrated strong revenue growth with a 38.94% increase in the latest year, indicating robust expansion. The gross profit margin is healthy at 19.12%, although it has slightly decreased from the previous year. The net profit margin is stable at 6.35%, showing consistent profitability. EBIT and EBITDA margins are also stable, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.67 from 2.11, indicating better leverage management. However, it remains relatively high, suggesting potential risk. The return on equity is strong at 19.87%, showcasing effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced capital structure.

Cash Flow

Free cash flow has shown significant improvement, moving from negative to positive, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting that the company is generating sufficient cash from operations. However, the free cash flow to net income ratio is slightly below 1, indicating room for improvement in cash conversion.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	29.80B	20.56B	15.25B	11.16B	10.18B
Gross Profit	5.70B	4.55B	3.08B	2.27B	2.03B
EBITDA	3.44B	2.41B	1.30B	1.10B	1.01B
Net Income	1.89B	1.38B	637.94M	640.25M	825.33M
Balance Sheet
Total Assets	29.10B	28.10B	22.48B	13.99B	11.61B
Cash, Cash Equivalents and Short-Term Investments	5.09B	3.11B	3.66B	3.53B	3.40B
Total Debt	15.93B	16.91B	12.90B	7.13B	5.59B
Total Liabilities	19.57B	20.11B	15.47B	8.46B	6.52B
Stockholders Equity	9.53B	7.99B	7.01B	5.53B	5.07B
Cash Flow
Free Cash Flow	2.83B	-4.62B	-5.69B	-1.96B	1.45B
Operating Cash Flow	2.89B	-4.56B	-5.67B	-1.89B	1.45B
Investing Cash Flow	286.93M	474.79M	244.51M	667.92M	144.98M
Financing Cash Flow	-1.34B	3.60B	5.36B	1.34B	-494.06M

Meiho Enterprise Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 439.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8927, the sentiment is Negative. The current price of 439 is below the 20-day moving average (MA) of 451.85, below the 50-day MA of 447.70, and below the 200-day MA of 454.43, indicating a bearish trend. The MACD of -2.22 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8927.

Meiho Enterprise Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥18.27B	3.07	―	4.71%	10.42%	48.21%
8850	75 Outperform	¥237.36B	8.22	―	2.67%	2.29%	-4.12%
3242	68 Neutral	¥19.73B	20.76	―	3.69%	84.40%	142.34%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8927	62 Neutral	¥13.25B	4.47	―	2.85%	20.54%	8.92%
3475	57 Neutral	¥43.67B	-26.35	―	3.75%	-8.66%	-53.57%
8918	57 Neutral	¥13.84B	114.89	―	1.11%	―	―

Meiho Enterprise Co., Ltd. Corporate Events

Meiho Enterprise Stays on Track With Strong Sales Pipeline and Profitable Construction Arm

Meiho Enterprise Co., Ltd. addressed investor questions following its first-quarter results for the fiscal year ending July 2026, emphasizing that although the number of property sales in the quarter was lower than the previous year, sales prospects already cover about 75% of its full-year earnings forecast, indicating that sales activities remain on track. Management said the impact of stricter potential regulations on foreign real estate buyers and recent interest rate hikes is expected to be limited, citing its focus on domestic investors, urban locations, short project cycles, and the ability to adjust quickly to market changes. The company reported that around ¥470 million of the approximately ¥600 million in third stock acquisition rights had been exercised by the end of November 2025, with proceeds earmarked to strengthen the balance sheet, secure liquidity, and fund land acquisition and development. Meiho also highlighted that its construction segment turned profitable in the first quarter, generating ¥1,173 million in revenue driven by increased external orders and the integration of two construction subsidiaries, while internalizing more construction work has helped offset persistently high construction costs through efficient execution and rigorous cost management. Additionally, the company is enhancing investor communications with a new “Quick Answer” section on its IR website and confirmed the schedule for distributing digital shareholder benefits linked to the October 31, 2025 record date.

The most recent analyst rating on (JP:8927) stock is a Hold with a Yen530.00 price target. To see the full list of analyst forecasts on Meiho Enterprise Co., Ltd. stock, see the JP:8927 Stock Forecast page.