Meitec (9744) AI Stock Analysis

• Market Cap: $247.37B
• Dividend Yield: 0.93%
• Average Volume (3M): 288.57K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.63
• Revenue Growth: 4.77%
• EPS Growth: -7.66%
• Country: JP
• Employees: 12,365
• Sector: Industrials
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): 38.06
• Shares Outstanding: 78,000,000
• 10 Day Avg. Volume: 188,970
• 30 Day Avg. Volume: 288,566
• PEG Ratio: 0.44
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.03
• 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

• Rating: 66 Neutral
• Price Target: ―

Meitec scores well in financial performance, with strong revenue growth, profitability, and a debt-free balance sheet. The technical analysis indicates a bearish market trend, suggesting caution. The valuation is moderate, offering a balance of growth and income potential. Overall, Meitec presents a solid investment case, though the current technical trends may warrant close monitoring.

Meitec Business Overview & Revenue Model

Company Description

Meitec Corporation operates as a leading engineering staffing company in Japan, primarily focused on providing high-quality, outsourced engineering services. The company caters to a wide range of industries, including automotive, aerospace, electronics, and industrial machinery, by supplying skilled engineers to meet the technological and developmental needs of its clients. Meitec's core services include temporary engineer staffing and comprehensive consulting services, allowing businesses to leverage specialized technical expertise without the long-term commitment of hiring full-time personnel.

How the Company Makes Money

Meitec Corporation generates revenue primarily through its engineering staffing services, which involve placing qualified engineers into client companies on a temporary basis. The company charges its clients for the hours worked by these engineers, establishing a markup on the wages paid to the engineers, which forms its primary revenue stream. Additionally, Meitec's consulting services contribute to its earnings by providing specialized technical solutions and project management support. The company's ability to maintain a vast network of skilled professionals and its reputation for high-quality service are significant factors that drive client retention and attract new business partnerships, thereby sustaining its revenue growth.

Meitec Financial Statement Overview

Summary

Meitec demonstrates strong financial performance with notable revenue growth and robust profitability margins. The balance sheet is exceptionally strong due to the absence of debt, which reduces financial risk. While cash flow from operations shows zero TTM data, historical trends indicate strong cash flow management. Overall, the company is financially sound with solid growth prospects.

Income Statement

Meitec has demonstrated strong revenue growth with a TTM revenue increase to 131.9 billion JPY from 126.98 billion JPY in the previous year, marking a 3.85% growth rate. The gross profit margin for the TTM is robust at 27.04%, and the net profit margin is impressive at 9.36%. Both EBIT and EBITDA margins reflect healthy profitability at 14.07% and 13.81% respectively. Overall, the company showcases solid revenue growth and profitability margins, indicating effective operational management.

Balance Sheet

Meitec maintains a strong balance sheet with no debt, resulting in a debt-to-equity ratio of 0, which significantly reduces financial risk. The equity ratio stands at 53.47%, highlighting a healthy proportion of equity financing. Return on equity (ROE) at 27.17% indicates efficient use of equity capital. The company's financial stability and low leverage contribute to its strong balance sheet position.

Cash Flow

Cash flow from operations is solid, although the TTM data shows zero operating cash flow and free cash flow, likely due to reporting issues or timing differences. Historically, Meitec has shown strong cash flow management with positive free cash flow growth from the past annual data. However, the absence of TTM cash flow figures restricts a complete assessment.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
131.88B	133.07B	126.98B	119.07B	107.14B	96.63B
	Gross Profit
35.67B	35.93B	34.23B	32.71B	28.22B	24.42B
	EBIT
18.55B	18.83B	17.66B	16.46B	12.82B	10.23B
	EBITDA
18.30B	18.59B	18.03B	16.88B	13.37B	10.79B
	Net Income Common Stockholders
12.34B	12.74B	12.34B	12.25B	9.24B	7.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.11B	53.01B	52.74B	51.03B	49.71B	45.13B
	Total Assets
84.90B	93.61B	90.76B	84.58B	81.59B	75.04B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-46.11B	-53.01B	-52.74B	-51.03B	-49.71B	-45.13B
	Total Liabilities
39.50B	44.83B	43.06B	37.86B	36.30B	30.57B
	Stockholders Equity
45.40B	48.78B	47.70B	46.72B	45.29B	44.47B
Cash Flow		Free Cash Flow
0.00	13.31B	14.41B	12.52B	13.34B	5.26B
	Operating Cash Flow
0.00	13.45B	14.67B	12.81B	13.53B	5.49B
	Investing Cash Flow
0.00	-998.00M	-1.06B	-446.00M	-270.00M	-307.00M
	Financing Cash Flow
0.00	-12.19B	-11.89B	-11.04B	-8.69B	-7.08B

Meitec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3188.00
• 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:9744, the sentiment is Positive. The current price of 3188 is below the 20-day moving average (MA) of 3214.50, above the 50-day MA of 3069.36, and above the 200-day MA of 2961.02, indicating a bullish trend. The MACD of 40.01 indicates Positive momentum. The RSI at 63.51 is Neutral, neither overbought nor oversold. The STOCH value of 38.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9744.

Meitec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4318	80 Outperform	¥41.84B	11.75		4.17%	10.22%	2.21%
2327	77 Outperform	$755.58B	27.93	10.73%	1.77%	8.91%	11.59%
4812	75 Outperform	¥446.38B	29.55		1.57%	7.49%	1.09%
4686	73 Outperform	¥227.03B	18.42		0.56%	4.47%	-1.74%
9749	72 Outperform	$637.47B	33.20	13.64%	0.43%	6.92%	25.38%
9744	66 Neutral	$247.37B	19.57	26.03%	0.93%	4.77%	-7.66%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%

Meitec Corporate Events

Meitec Group Holdings Reports Stable Growth and Increased Dividends for 2024

Meitec Group Holdings reported a 5.1% increase in net sales for the nine months ending December 31, 2024, compared to the same period in the previous year. Despite a slight decline in profit attributable to owners, the company has maintained a steady financial position with a strong equity ratio and has announced a significant increase in annual dividends, including a commemorative dividend to mark its 50th anniversary. These results indicate a stable performance in the face of market challenges and a commitment to shareholder returns.