METAWATER Co (9551) AI Stock Analysis

• Market Cap: ¥141.91B
• Dividend Yield: 1.84%
• Average Volume (3M): 140.69K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.65
• Revenue Growth: 13.86%
• EPS Growth: 51.05%
• Country: JP
• Employees: 2,880
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): N/A
• Shares Outstanding: 44,258,500
• 10 Day Avg. Volume: 132,870
• 30 Day Avg. Volume: 140,693
• PEG Ratio: -31.08
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 7.26
• 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: ¥4,319.00 ▲(29.12% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

METAWATER Co. demonstrates strong financial performance with robust revenue growth and improving cash flows. The technical indicators show bullish momentum, although the stock is currently overbought. Valuation metrics suggest the stock is fairly valued, with a moderate dividend yield.

Positive Factors

Revenue Growth

Sustained revenue expansion from ¥133,355m to ¥179,094m over 2021–2025 signals durable end-market demand and effective project execution. Larger scale improves bargaining power, supports reinvestment in operations, and underpins long-term margin and earnings stability.

Cash Generation

A turnaround to positive free cash flow and stronger operating cash generation reflects improving cash conversion and operational discipline. This enhances ability to fund capex, service debt, and finance growth initiatives without relying heavily on external financing.

Balance Sheet Strength

Material equity growth and a healthy equity ratio indicate a stronger capital base and prudent leverage. A robust balance sheet supports bidding on large infrastructure contracts, absorbs project variability, and preserves capacity to invest or raise capital when strategic opportunities arise.

Negative Factors

Rising Debt Levels

Although leverage is described as manageable, the increase in total debt narrows financial optionality over the medium term. Higher debt raises interest and refinancing exposure and could constrain capital allocation if cash generation weakens or rates rise.

Margin Pressures

Noted slight declines in net profit margin point to growing cost or non-operating pressures. If these trends persist, they would reduce free cash available for reinvestment and debt servicing, making sustained cost control and efficiency improvements critical.

Sector Concentration Risk

Concentration in water and environmental infrastructure links revenue to public budgets, long project cycles, and regulatory timing. This can create contract timing risk and revenue volatility, requiring strong backlog management and public-sector relationships to ensure steady execution.

METAWATER Co Business Overview & Revenue Model

Company Description

METAWATER Co., Ltd. designs and constructs equipment for water treatment plants, sewage treatment plants, and waste treatment facilities in Japan and internationally. It operates in two segments, Plant Engineering Business and Service Solution Business. The company also designs, manufactures, and sells various devices; implements repair work; and installs machine and equipment, and telecommunication work, as well as provision including operation management services. In addition, it offers civil engineering, building, electrical, plumbing, tile, brick, and block works; and provides water and sewage, and sanitation facilities works. The company was incorporated in 2007 and is headquartered in Tokyo, Japan.

How the Company Makes Money

METAWATER generates revenue through multiple streams, including the sale of water treatment equipment, systems, and technologies. The company also earns income from providing maintenance and support services for existing water treatment facilities. Significant revenue is derived from long-term contracts with municipalities and industrial clients for the operation and management of water supply and wastewater treatment plants. Additionally, METAWATER partners with other firms and government entities to develop and implement large-scale water infrastructure projects, contributing to its earnings through project-based contracts and consulting services.

METAWATER Co Financial Statement Overview

Summary

METAWATER Co. is performing well with strong revenue growth and profitability. The balance sheet is solid with manageable leverage, and cash flows are improving, enhancing financial stability. However, attention to cost management and debt levels is crucial.

Income Statement

METAWATER Co. has shown strong revenue growth over recent years, increasing from ¥133,355 million in 2021 to ¥179,094 million in 2025. The gross profit margin has been stable, reflecting effective cost management. The EBIT and EBITDA margins are healthy, indicating strong operational efficiency. However, slight declines in net profit margin suggest rising expenses or other cost pressures.

Balance Sheet

The company's balance sheet is robust with a solid equity base that has increased from ¥53,265 million in 2021 to ¥81,304 million in 2025. The debt-to-equity ratio remains manageable, demonstrating prudent leverage levels. The equity ratio is healthy, indicating a strong asset base supported by equity. However, the increase in total debt requires monitoring to maintain financial flexibility.

Cash Flow

METAWATER Co. has achieved significant improvement in free cash flow, moving from negative values in earlier years to a positive free cash flow in 2025. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. The company’s cash flow from operations has turned positive, supporting future capital expenditures and debt servicing.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	187.13B	179.09B	165.56B	150.72B	135.56B	133.35B
Gross Profit	41.46B	38.71B	34.40B	30.29B	28.49B	29.62B
EBITDA	13.86B	13.12B	13.19B	11.20B	10.62B	12.65B
Net Income	7.43B	6.85B	6.88B	6.25B	6.25B	6.54B
Balance Sheet
Total Assets	192.33B	196.78B	168.84B	142.69B	133.06B	131.19B
Cash, Cash Equivalents and Short-Term Investments	72.81B	36.28B	14.88B	11.72B	21.29B	18.78B
Total Debt	40.91B	40.42B	27.01B	14.40B	12.41B	11.68B
Total Liabilities	110.03B	111.43B	93.17B	76.06B	73.52B	77.76B
Stockholders Equity	78.17B	81.30B	72.93B	65.19B	59.25B	53.27B
Cash Flow
Free Cash Flow	0.00	11.54B	-11.45B	-6.92B	3.85B	9.67B
Operating Cash Flow	0.00	13.32B	-5.49B	-4.34B	6.63B	10.40B
Investing Cash Flow	0.00	-4.09B	-3.10B	-6.45B	-3.85B	-3.25B
Financing Cash Flow	0.00	12.01B	11.34B	717.00M	-628.00M	-2.10B

METAWATER Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3345.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9551, the sentiment is Neutral. The current price of 3345 is below the 20-day moving average (MA) of 3895.50, below the 50-day MA of 3616.60, and above the 200-day MA of 2991.68, indicating a neutral trend. The MACD of 120.23 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 33.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9551.

METAWATER Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9551	76 Outperform	¥141.91B	21.86	12.54%	1.84%	13.86%	51.05%
6370	72 Outperform	¥960.73B	16.97	6.61%	1.58%	5.02%	-27.41%
6331	72 Outperform	¥81.67B	11.99	16.37%	2.79%	31.48%	16.11%
6368	71 Outperform	¥786.99B	23.01	―	1.43%	7.87%	38.32%
6013	69 Neutral	¥236.45B	10.37	9.02%	3.11%	1.25%	-3.97%
7004	66 Neutral	¥171.06B	-49.70	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

METAWATER Co Corporate Events

Metawater Sets Employee Stock Benefit Rules and Disposes Treasury Shares for J-ESOP

Metawater has approved detailed stock benefit rules and the disposal of 60,000 treasury shares to fund a J-ESOP stock benefit trust for employees, following its previously announced plan to introduce this incentive scheme. Under the rules, employees will receive share-based benefits linked to individual contributions via points that convert into common stock, with Mizuho Trust & Banking and Custody Bank of Japan administering the trust.

The treasury shares will be allotted through a third-party placement to a designated trust account at a disposal price of ¥4,130 per share, representing about 0.14% of outstanding shares and deemed to have minimal dilution and market impact. The trust, to be funded and launched on March 13, 2026, is intended to run as long as the plan continues and to strengthen employee incentives by aligning staff interests more closely with shareholder value over the three fiscal years through March 2028 and beyond.

The most recent analyst rating on (JP:9551) stock is a Buy with a Yen4669.00 price target. To see the full list of analyst forecasts on METAWATER Co stock, see the JP:9551 Stock Forecast page.

METAWATER Launches Tender Offer to Take SUIDO KIKO Private in Alliance with Toray

METAWATER’s board has approved a tender offer to acquire all publicly traded shares of SUIDO KIKO KAISHA, Ltd. (excluding treasury shares and those held by parent company Toray Industries), with the aim of taking SUIDO KIKO private and making it an equity-method affiliate jointly owned with Toray. Under definitive agreements signed with Toray and SUIDO KIKO, Toray will retain its 51.06% stake and not tender its shares, while METAWATER seeks to buy at least 669,400 shares (15.60% of voting rights) with no upper limit, and, if full acquisition is not achieved via the tender, plans to use share consolidation and related squeeze-out procedures so that post-transaction Toray and METAWATER will own approximately 51% and 49% of voting rights respectively, reshaping SUIDO KIKO’s ownership structure and deepening a capital and business alliance among the three companies.

The most recent analyst rating on (JP:9551) stock is a Buy with a Yen3874.00 price target. To see the full list of analyst forecasts on METAWATER Co stock, see the JP:9551 Stock Forecast page.

METAWATER Releases Q3 FY2025 Financial Outline and Updates on Mid-term Plan 2027

METAWATER Co., Ltd. has released an outline of its financial results for the third quarter of the fiscal year ending March 2026, covering its income statement, balance sheet, and cash flows, along with highlights of performance for the period. The company also provided supplementary information on its Mid-term Business Plan 2027, indicating that current results are being presented in the context of its medium-term strategic objectives and operational roadmap, which will be closely watched by stakeholders tracking progress against its long-term growth and investment plans.

The most recent analyst rating on (JP:9551) stock is a Buy with a Yen3818.00 price target. To see the full list of analyst forecasts on METAWATER Co stock, see the JP:9551 Stock Forecast page.

METAWATER Returns to Profit and Lifts Payout as Earnings Rebound

METAWATER reported a strong rebound in performance for the nine months ended December 31, 2025, with net sales rising 24.9% year on year to ¥122.98 billion and a return to profitability, posting operating income of ¥3.25 billion and profit attributable to owners of parent of ¥2.28 billion, compared with a loss in the same period a year earlier. The company maintained a solid financial position with total assets of ¥193.55 billion and an equity ratio of 41.4%, and it confirmed its dividend plan for the fiscal year ending March 31, 2026 at ¥70 per share, up from ¥50 the previous year, alongside a full-year forecast calling for double-digit growth in sales and profit, underscoring management’s confidence in sustained earnings recovery and providing greater visibility for shareholders on returns.

The most recent analyst rating on (JP:9551) stock is a Buy with a Yen3818.00 price target. To see the full list of analyst forecasts on METAWATER Co stock, see the JP:9551 Stock Forecast page.