Meitec (9744) AI Stock Analysis

• Market Cap: ¥264.92B
• Dividend Yield: 5.57%
• Average Volume (3M): 338.79K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.60
• Revenue Growth: 4.09%
• EPS Growth: 17.10%
• Country: JP
• Employees: 12,365
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 54.29
• Shares Outstanding: 78,000,000
• 10 Day Avg. Volume: 394,070
• 30 Day Avg. Volume: 338,786
• PEG Ratio: 4.17
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 17.69
• 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: 85 Outperform
• Price Target: ¥4,204.00 ▲(17.50% Upside)

The score is driven primarily by high-quality financials (strong margins, zero-debt balance sheet, and high ROE) and supported by an attractive dividend yield. Technicals are constructive with a clear uptrend, though elevated RSI suggests near-term overbought risk. Key risk to monitor is moderating revenue growth and softer operating cash flow in the latest period.

Positive Factors

Balance Sheet Health

A zero-debt balance sheet provides strong financial flexibility and resilience, allowing the company to navigate economic fluctuations without leverage pressure.

Profitability

Consistent profitability with strong EBIT and net margins indicates effective cost management and pricing power, supporting long-term financial stability.

Cash Generation

Strong cash generation relative to net income supports earnings quality and provides resources for reinvestment or shareholder returns, enhancing financial health.

Negative Factors

Revenue Growth Slowdown

A slowdown in revenue growth could indicate waning demand or market saturation, potentially impacting future earnings and strategic expansion opportunities.

Uneven Cash Flow Growth

Inconsistent cash flow growth can signal operational inefficiencies or fluctuating demand, which may challenge the company's ability to fund growth initiatives consistently.

Moderate Operating Cash Flow

Moderate operating cash flow coverage ratios suggest potential constraints in liquidity management, which could limit the company's ability to invest in growth or manage downturns.

Meitec Business Overview & Revenue Model

Company Description

Meitec Corporation provides dispatch engineering solutions to manufacturing companies in Japan. It offers engineering solutions, including mechanical design, electrical/electronic design, software development, chemical engineering, and analysis/evaluation. The company was formerly known as Nagoya Technical Center Co., Ltd. and changed its name to Meitec Corporation in 1985. Meitec Corporation was founded in 1974 and is headquartered in Tokyo, Japan.

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

Strong profitability and stability: steady revenue growth over 2021–2025 with solid EBIT margin (~14% in 2024–2025) and healthy net margin (~9–10%). Balance sheet is exceptionally conservative with zero debt and consistently high ROE (~20%+), supporting resilience and flexibility. Cash conversion is generally good (FCF closely tracks net income), but operating cash flow and FCF growth have been uneven, and revenue growth appears to be slowing in the latest period.

Income Statement

Revenue has grown steadily from 2021 to 2025 (annual), with profitability improving versus 2020. Gross margin is stable around ~26–27%, while operating profitability is strong (EBIT margin ~14% in 2024–2025) and net margin remains healthy near ~9–10%. A key watch-out is the sharp slowdown in the latest revenue growth rate shown for 2025 versus prior years, suggesting growth momentum may be moderating.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt across the periods provided, resulting in no leverage pressure and strong financial flexibility. Equity has been stable-to-growing, and returns on equity are consistently high (~20%+ and ~26% in recent years), indicating efficient capital use. The main limitation is that with no debt, returns are driven purely by operating performance—so any earnings slowdown would flow through more directly without leverage to amplify results.

Cash Flow

Cash generation is strong overall, with free cash flow closely tracking net income (roughly ~0.96–0.99x across years), which supports earnings quality. Free cash flow levels have risen materially versus 2021, though year-to-year growth has been somewhat uneven (including declines in some years). A notable concern is that operating cash flow is not consistently high relative to revenue (coverage ratios shown are moderate), and operating cash flow dipped in 2025 versus 2024.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	134.24B	133.07B	126.98B	119.07B	107.14B	96.63B
Gross Profit	36.09B	35.93B	34.23B	32.71B	28.22B	24.42B
EBITDA	18.67B	19.12B	18.03B	16.88B	13.37B	10.79B
Net Income	12.85B	12.74B	12.34B	12.25B	9.24B	7.03B
Balance Sheet
Total Assets	80.83B	93.61B	90.76B	84.58B	81.59B	75.04B
Cash, Cash Equivalents and Short-Term Investments	42.30B	53.01B	52.74B	51.03B	49.71B	45.13B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	37.24B	44.83B	43.06B	37.86B	36.30B	30.57B
Stockholders Equity	43.59B	48.77B	47.70B	46.72B	45.29B	44.47B
Cash Flow
Free Cash Flow	0.00	13.29B	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: Neutral
• Last Price: 3578.00
• 50DMA: Negative
• 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:9744, the sentiment is Neutral. The current price of 3578 is below the 20-day moving average (MA) of 3608.00, above the 50-day MA of 3539.44, and above the 200-day MA of 3221.45, indicating a neutral trend. The MACD of -2.96 indicates Positive momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9744.

Meitec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9744	85 Outperform	¥264.92B	18.98	28.98%	5.57%	4.09%	17.10%
2154	80 Outperform	¥168.00B	12.42	―	4.01%	0.27%	9.15%
2146	79 Outperform	¥123.43B	20.83	―	7.51%	8.28%	-36.32%
2181	76 Outperform	¥614.43B	15.58	19.18%	3.59%	6.95%	13.63%
2124	76 Outperform	¥162.72B	20.18	―	2.38%	20.17%	32.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%