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MEGMILK SNOW BRAND Co., Ltd. (JP:2270)
:2270
Japanese Market
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MEGMILK SNOW BRAND Co., Ltd. (2270) AI Stock Analysis

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JP:2270

MEGMILK SNOW BRAND Co., Ltd.

(2270)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
¥3,929.00
▲(21.45% Upside)
Action:Downgraded
Date:08/10/26
The score is driven primarily by financials that are strong on profitability and balance-sheet conservatism but materially offset by weak cash conversion and negative recent free cash flow. Valuation is a clear positive (low P/E with a meaningful dividend yield), while technicals are broadly neutral to slightly soft, limiting near-term momentum support.
Positive Factors
Conservative leverage and stronger balance sheet
Sustained deleveraging to a ~0.19 debt-to-equity provides durable financial flexibility. Lower leverage reduces refinancing and interest-rate risk, supports investment or dividend capacity, and helps the company withstand commodity or demand shocks without forcing rapid asset sales or costly capital raises.
Negative Factors
Weak cash conversion and negative free cash flow
Earnings are not converting into cash: negative TTM free cash flow raises persistent funding risks. Over 2–6 months this can constrain capex, working-capital cushions, or dividend reliability and may force external financing if the conversion gap isn’t closed by operational or working-capital improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage and stronger balance sheet
Sustained deleveraging to a ~0.19 debt-to-equity provides durable financial flexibility. Lower leverage reduces refinancing and interest-rate risk, supports investment or dividend capacity, and helps the company withstand commodity or demand shocks without forcing rapid asset sales or costly capital raises.
Read all positive factors

MEGMILK SNOW BRAND Co., Ltd. (2270) vs. iShares MSCI Japan ETF (EWJ)

MEGMILK SNOW BRAND Co., Ltd. Business Overview & Revenue Model

Company Description
MEGMILK SNOW BRAND Co.,Ltd. operates as a manufacturer and purveyor of a diverse range of dairy and other food products, serving markets both domestically in Japan and across international borders. Its extensive portfolio includes staple dairy ite...
How the Company Makes Money
The company makes money primarily by manufacturing branded food and dairy products and selling them through multiple sales channels. Key revenue streams generally include: (1) Consumer dairy and chilled products: revenue from packaged milk, yogurt...

MEGMILK SNOW BRAND Co., Ltd. Financial Statement Overview

Summary
Reported profitability has improved (TTM net margin ~5.3% and EBIT margin ~7.5%) and leverage is conservative (debt-to-equity ~0.19, improving). However, cash generation is a major weakness: operating cash flow is modest versus net income and free cash flow is negative in the TTM (~-16.3B), creating execution/funding risk if it persists.
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
41
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue618.50B615.76B615.82B605.42B584.31B558.40B
Gross Profit104.76B104.36B101.50B98.28B87.19B89.44B
EBITDA55.15B63.73B36.31B45.96B30.65B34.67B
Net Income38.46B32.90B13.90B19.43B9.13B12.07B
Balance Sheet
Total Assets421.60B426.82B431.07B431.22B410.13B401.89B
Cash, Cash Equivalents and Short-Term Investments9.66B14.04B21.37B29.00B20.35B19.99B
Total Debt41.51B46.31B55.86B58.87B69.88B72.23B
Total Liabilities174.31B186.07B183.03B195.92B194.22B192.36B
Stockholders Equity244.15B237.67B244.68B232.09B212.88B206.78B
Cash Flow
Free Cash Flow-16.27B-4.39B167.00M11.88B7.04B9.45B
Operating Cash Flow11.35B22.90B21.10B30.46B26.81B29.42B
Investing Cash Flow18.75B7.17B-18.51B-6.31B-19.62B-20.21B
Financing Cash Flow-29.91B-37.46B-10.38B-15.64B-7.29B-11.26B

MEGMILK SNOW BRAND Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3235.00
Price Trends
50DMA
3694.20
Positive
100DMA
3523.55
Positive
200DMA
3336.54
Positive
Market Momentum
MACD
7.69
Negative
RSI
55.38
Neutral
STOCH
79.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2270, the sentiment is Positive. The current price of 3235 is below the 20-day moving average (MA) of 3666.00, below the 50-day MA of 3694.20, and below the 200-day MA of 3336.54, indicating a bullish trend. The MACD of 7.69 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 79.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2270.

MEGMILK SNOW BRAND Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥192.29B17.2911.76%3.44%7.51%-53.44%
65
Neutral
¥227.49B5.952.47%0.44%138.68%
65
Neutral
¥371.03B15.182.42%1.89%227.30%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
60
Neutral
¥1.23T30.114.63%2.77%3.53%-14.19%
57
Neutral
¥395.08B29.351.45%9.93%1562.32%
55
Neutral
¥337.78B52.282.26%1.85%10.44%-22.76%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2270
MEGMILK SNOW BRAND Co., Ltd.
3,735.00
941.62
33.71%
JP:2269
Meiji Holdings Co
4,471.00
1,462.27
48.60%
JP:2602
Nisshin OilliO Group, Ltd.
2,046.00
381.06
22.89%
JP:2206
Ezaki Glico Co., Ltd.
5,207.00
277.19
5.62%
JP:2264
Morinaga Milk Industry Co., Ltd.
1,149.50
318.19
38.28%
JP:2607
Fuji Oil Holdings, Inc.
4,596.00
958.43
26.35%

MEGMILK SNOW BRAND Co., Ltd. Corporate Events

Megmilk Snow Brand outlines Q1 2026 results and FY2026 earnings outlook
Aug 7, 2026
Megmilk Snow Brand released supplementary information for the three months ended June 30, 2026, detailing consolidated income statements, segment sales and operating profit, cash flows, and balance sheet data. The materials show year‑on&#820...
MEGMILK SNOW BRAND Q1 Profit Surges as Share Buybacks Lift EPS; Full-Year Outlook Maintained
Aug 7, 2026
MEGMILK SNOW BRAND reported consolidated net sales of ¥155.1 billion for the quarter ended June 30, 2026, up 1.8% year on year, with operating profit rising 5.8% to ¥3.7 billion but ordinary profit slipping 6.4% to ¥4.0 billion. Pro...
MEGMILK SNOW BRAND Details Progress of 2026 Share Buyback Program
Aug 4, 2026
MEGMILK SNOW BRAND Co., Ltd. reported the results of its July 2026 share buyback, executed under authorizations based on Japan’s Companies Act. The company repurchased 306,800 common shares on the Tokyo Stock Exchange during the month, at a ...
MEGMILK SNOW BRAND Advances Share Buyback Under ¥10 Billion Program
Jul 1, 2026
MEGMILK SNOW BRAND Co., Ltd. has reported the results of its latest share buyback, repurchasing 258,300 common shares for approximately ¥925.6 million through market purchases on the Tokyo Stock Exchange between June 1 and June 30, 2026. This...
Megmilk Snow Brand Reports Progress on Share Buyback Program
Jun 2, 2026
Megmilk Snow Brand Co., Ltd. has reported the progress of its share repurchase program for May 2026, carried out under the Companies Act. The company bought back 168,700 common shares on the Tokyo Stock Exchange during the period from May 15 to Ma...
MEGMILK SNOW BRAND to Revamp Leadership With Change of Representative Director
May 14, 2026
MEGMILK SNOW BRAND has announced a change in its top management, with the Board of Directors resolving on May 14, 2026 to replace its Representative Director as part of efforts to overhaul the leadership structure. The move reflects the company&#8...
Megmilk Snow Brand to Shut Kawagoe Plant and Consolidate Kanto Production
May 14, 2026
MEGMILK SNOW BRAND will overhaul its production footprint in Japan’s Kanto region by shutting down manufacturing at the Kawagoe Plant and consolidating output at its Ebina and Noda plants, as well as at group company Luna Bussan. The move, f...
Megmilk Snow Brand Launches ¥10 Billion Share Buyback Under 2030 Plan
May 14, 2026
Megmilk Snow Brand Co., Ltd. has approved a share repurchase program under Japan’s Companies Act as part of its capital policy in the “Next Design 2030” management plan. The company aims to enhance capital efficiency by adjusting...
MEGMILK SNOW BRAND Lifts Bottom Line on Extraordinary Gains, Sees Profit Rebound Ahead
May 14, 2026
MEGMILK SNOW BRAND reported consolidated results for the fiscal year ended March 31, 2026, showing largely flat net sales and modest declines in operating and ordinary profit compared with the previous year. Profit attributable to owners of parent...
MEGMILK SNOW BRAND Profit Soars Despite Flat Sales, Signals Earnings Slowdown Ahead
May 14, 2026
MEGMILK SNOW BRAND reported flat consolidated net sales of ¥615.8 billion for the year ended March 31, 2026, while operating profit slipped 4.5% to ¥18.3 billion and ordinary profit edged up 1.1% to ¥20.5 billion. Profit attributabl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 10, 2026