Members Co., Ltd. (2130) AI Stock Analysis

• Market Cap: ¥16.36B
• Dividend Yield: 2.61%
• Average Volume (3M): 40.48K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 1.02
• Revenue Growth: 11.55%
• EPS Growth: 73.10%
• Country: JP
• Employees: 2,806
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): 34.85
• Shares Outstanding: 13,421,700
• 10 Day Avg. Volume: 53,990
• 30 Day Avg. Volume: 40,476
• PEG Ratio: 0.33
• Price to Book (P/B): 2.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.61
• 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

Members Co., Ltd. demonstrates strong financial performance and technical momentum, contributing positively to the overall score. However, the high P/E ratio indicates potential overvaluation, which tempers the optimism. The stock's financial health and technical indicators suggest a robust position, but valuation concerns should be considered by potential investors.

Members Co., Ltd. Business Overview & Revenue Model

Company Description

Members Co., Ltd. (2130) is a Japanese company that primarily operates in the IT services sector. The company specializes in providing web production, system development, and IT consulting services. It caters to a wide range of industries by offering digital marketing solutions, user experience design, and digital transformation support to enhance business operations and customer engagement.

How the Company Makes Money

Members Co., Ltd. generates revenue through multiple streams within the IT services domain. The company's primary income sources include fees from web production and system development projects, where they design and implement digital solutions tailored to client needs. Additionally, Members Co., Ltd. earns from IT consulting services, providing strategic guidance and implementation support for digital transformations. The company may also engage in partnerships with technology providers to enhance service offerings, thus potentially creating additional revenue opportunities through collaborative projects.

Members Co., Ltd. Financial Statement Overview

Summary

Overall, Members Co., Ltd. exhibits strong financial health with consistent revenue growth and profitability. The balance sheet shows low leverage and high liquidity, while cash flow metrics demonstrate robust cash generation capabilities. The company is well-positioned in the advertising industry, with potential for continued growth and stability.

Income Statement

The income statement shows strong revenue growth, with a TTM revenue of ¥21.9 billion, up from ¥20.5 billion annually. Gross profit margin is healthy at 20.89%, and the net profit margin is stable at 1.88% TTM, though it was higher at 0.62% annually. EBIT and EBITDA margins are also positive, indicating operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.17 and a strong equity ratio of 51.12%. The return on equity is moderate at 7.18% TTM, reflecting reasonable profitability. The company maintains high cash reserves, enhancing financial stability.

Cash Flow

Cash flow analysis reveals a solid free cash flow growth of 136.41% TTM, with strong operating cash flow supporting net income, resulting in a healthy operating cash flow to net income ratio of 3.37. Free cash flow to net income ratio is impressive at 3.21, indicating efficient cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
21.91B	20.47B	17.66B	14.94B	12.09B	10.61B
	Gross Profit
4.58B	4.29B	5.20B	4.76B	3.86B	3.50B
	EBIT
452.35M	46.95M	1.44B	1.88B	1.26B	1.25B
	EBITDA
1.13B	566.58M	1.93B	2.24B	1.61B	1.55B
	Net Income Common Stockholders
412.69M	126.52M	1.01B	1.40B	896.36M	861.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.78B	3.78B	4.48B	5.23B	4.14B	3.12B
	Total Assets
11.68B	11.53B	11.32B	10.40B	8.65B	7.41B
	Total Debt
715.83M	715.83M	662.78M	598.25M	392.10M	461.32M
	Net Debt
-3.06B	-3.06B	-3.82B	-4.63B	-3.75B	-2.65B
	Total Liabilities
5.75B	5.59B	4.94B	4.51B	4.03B	3.22B
	Stockholders Equity
5.93B	5.93B	6.38B	5.90B	4.61B	4.12B
Cash Flow		Free Cash Flow
1.33B	561.30M	1.26B	1.64B	1.78B	916.90M
	Operating Cash Flow
1.39B	584.97M	1.40B	1.65B	1.83B	967.24M
	Investing Cash Flow
-66.40M	-100.03M	-1.17B	-98.81M	-57.80M	-62.71M
	Financing Cash Flow
-1.17B	-1.19B	-980.29M	-468.95M	-751.67M	-383.94M

Members Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1211.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2130, the sentiment is Positive. The current price of 1211 is above the 20-day moving average (MA) of 1157.00, above the 50-day MA of 1127.30, and above the 200-day MA of 1002.65, indicating a bullish trend. The MACD of 36.55 indicates Negative momentum. The RSI at 60.31 is Neutral, neither overbought nor oversold. The STOCH value of 85.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2130.

Members Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2130	77 Outperform	¥16.36B	44.78		2.61%	11.55%	73.10%
9719	74 Outperform	¥1.34T	29.74		1.66%	24.10%	11.27%
8056	74 Outperform	¥499.39B	20.01		2.02%	9.15%	8.60%
4684	69 Neutral	¥2.56T	35.78	15.31%	1.59%	8.65%	12.22%
4816	67 Neutral	¥688.32B	28.52		1.24%	5.28%	11.13%
4768	66 Neutral	$1.11T	19.69	16.17%	2.72%	15.49%	18.42%
Sector *	60 Neutral	$14.09B	6.89	-3.35%	3.69%	2.42%	-36.25%

Members Co., Ltd. Corporate Events

Members Co., Ltd. Reports 3Q FY2025 Financial Results and Sustainability Achievements

Members Co., Ltd. reported its financial results for the third quarter of FY2025. The company continues to focus on digital transformation initiatives and has been recognized for its sustainability efforts. This announcement highlights their commitment to societal contributions through digital solutions, positioning them as leaders in addressing climate and demographic challenges.

Members Co., Ltd. Reports Nine-Month Financials, Anticipates Turnaround

Members Co., Ltd. has reported its non-consolidated financial results for the nine months ending December 31, 2024, with a revenue increase of 9.9% year-on-year. Despite the revenue growth, the company recorded an operating loss, reflecting a transition to non-consolidated financial reporting following an organizational restructuring that involved the merger of Members Energy Co., Ltd. The company is expecting a positive turnaround by the end of the fiscal year, forecasting a significant increase in operating profit and earnings per share.