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MEGMILK SNOW BRAND Co., Ltd. (2270) AI Stock Analysis

2 Followers
JP:2270

MEGMILK SNOW BRAND Co., Ltd.

(TSE/TYO:2270)

Select Model
Rating:66Neutral
Price Target:JPY 3,775.00â–²(7.55% Upside)
Action:downgraded
Date:11/13/26

MEGMILK SNOW BRAND's moderate overall score is driven primarily by its highly attractive valuation, strong profitability improvements, and robust balance sheet. However, these strengths are counterbalanced by deeply negative free cash flow generation and bearish short-term technical trends.

Positive Factors
Conservative leverageLower leverage and a sizable equity base provide financial resilience and flexibility for a packaged-food producer. This reduces balance-sheet strain, supports continued investment across dairy and food categories, and improves the company’s ability to withstand operating volatility over the next several quarters.
Negative Factors
Negative free cash flowNegative free cash flow and weak conversion of accounting profit into operating cash reduce financial flexibility despite improved earnings. The company may have less internally generated funding for capital expenditure, shareholder returns, or expansion until working-capital demands or investment spending moderate.

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

-10%0%10%20%30%40%JP:2270+21.11%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 208.41B
Dividend Yield
2.85%
Average Volume (3M)
173.50K
Price to Earnings (P/E)
5.5
Beta (1Y)
0.32
Revenue Growth
0.87%
EPS Growth
163.17%
Country
Japan
Employees
5,844
Sector
Consumer Defensive
Sector Strength
62
Industry
Packaged Foods

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 items...

MEGMILK SNOW BRAND Co., Ltd. Financial Statement Overview

Summary

The company shows a robust balance sheet with declining debt levels and solid net income growth driven by expanding margins. However, a sharp drop in operating cash flow and deeply negative free cash flow pose notable cash generation concerns.

Income Statement

75Positive

Balance Sheet

88Very Positive

Cash Flow

42Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue618.74B615.76B615.82B605.42B584.31B558.40B
Gross Profit104.05B104.36B101.50B98.28B87.19B89.44B
EBITDA56.89B63.73B36.31B45.96B30.65B34.67B
Net Income39.11B32.90B13.90B19.43B9.13B12.07B
Balance Sheet
Total Assets425.32B426.82B431.07B431.22B410.13B401.89B
Cash, Cash Equivalents and Short-Term Investments7.51B14.04B21.37B29.00B20.35B19.99B
Total Debt42.33B46.31B55.86B58.87B69.88B72.23B
Total Liabilities177.28B186.07B183.03B195.92B194.22B192.36B
Stockholders Equity244.85B237.67B244.68B232.09B212.88B206.78B
Cash Flow
Free Cash Flow-16.96B-4.39B167.00M11.88B7.04B9.45B
Operating Cash Flow12.70B22.90B21.10B30.46B26.81B29.42B
Investing Cash Flow17.09B7.17B-18.51B-6.31B-19.62B-20.21B
Financing Cash Flow-29.31B-37.46B-10.38B-15.64B-7.29B-11.26B

MEGMILK SNOW BRAND Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price3510.00

Price Trends

50DMA3604.10Negative
100DMA3649.15Negative
200DMA3483.89Positive

Market Momentum

MACD-27.29Positive
RSI47.74Neutral
STOCH40.70Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2270, the sentiment is Negative. The current price of 3510.00 is below the 20-day moving average (MA) of 3548.75, below the 50-day MA of 3604.10, and above the 200-day MA of 3483.89, indicating a neutral trend. The MACD of -27.29 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 40.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2270.

MEGMILK SNOW BRAND Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (62)

Financial Indicators

JP:2270 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2264JP:226477OutperformJPY 403.95B18.64―2.06%2.67%112.23%
JP:2269JP:226966NeutralJPY 1.22T28.165.52%2.43%3.21%-6.16%
JP:2270JP:227066NeutralJPY 213.79B5.47―2.85%0.87%163.17%
Sector *62Neutral$20.33B14.63-3.31%3.23%1.93%-12.26%
JP:2602JP:260259NeutralJPY 204.50B16.055.86%2.76%8.63%-45.54%
JP:2206JP:220658NeutralJPY 331.95B57.702.03%1.86%6.48%-20.29%
JP:2607JP:260749NeutralJPY 367.49B24.36―1.33%3.57%54.54%

* Consumer Defensive Sector Average

Performance Comparison

0%20%40%JP:2270JP:2269JP:2602JP:2206JP:2264JP:2607Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:2270 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2270MEGMILK SNOW BRAND Co., Ltd.3510.00607.0220.91%
JP:2269Meiji Holdings Co 4428.001324.8142.69%
JP:2602Nisshin OilliO Group, Ltd.2176.00494.1529.38%
JP:2206Ezaki Glico Co., Ltd.5117.00-121.41-2.32%
JP:2264Morinaga Milk Industry Co., Ltd.1251.50341.2737.49%
JP:2607Fuji Oil Holdings, Inc.4275.00812.3923.46%

MEGMILK SNOW BRAND Co., Ltd. Corporate Events

MEGMILK SNOW BRAND Board Resolves to Continue Stock Compensation Plan

Nov 10, 2026

MEGMILK SNOW BRAND Co., Ltd., a company listed on the Tokyo Stock Exchange Prime Market, said its board resolved on May 14, 2026, to continue its performance-linked stock compensation plan for Directors, excluding Audit and Supervisory Committee Memb...

MEGMILK SNOW BRAND Reports Six-Month Results and Revises FY2026 Forecasts

Nov 10, 2026

MEGMILK SNOW BRAND Co., Ltd. reported six-month results for the period ended September 30, 2026, with net sales of ¥312.2 billion, up 1.0% year over year, while operating profit fell 12.4% to ¥8.0 billion and ordinary profit declined 17.4% to ¥8.7 bi...

MEGMILK SNOW BRAND Reports Six-Month Results

Nov 10, 2026

MEGMILK SNOW BRAND Co., Ltd. is listed on the Tokyo Stock Exchange’s Prime Market and the Sapporo Securities Exchange.For the six months ended September 30, 2026, net sales rose 1.0% year on year to 312,203 million yen, while operating profit fell 12...

MEGMILK SNOW BRAND Repurchases ¥1.059 Billion in October

Nov 4, 2026

MEGMILK SNOW BRAND Co., Ltd. reported that it repurchased 299,900 common shares for ¥1.059 billion through Tokyo Stock Exchange market purchases between October 1 and October 31, 2026, under its previously authorized share-buyback program.As of Octob...

MEGMILK SNOW BRAND Details Progress of Ongoing Share Buyback Program

Oct 2, 2026

MEGMILK SNOW BRAND Co., Ltd. reported the results of its share repurchase activity for September 2026. The company bought back 199,400 shares of common stock on the Tokyo Stock Exchange during the month, spending JPY 750,540,000.This repurchase is pa...

MEGMILK SNOW BRAND Details Progress of Ongoing Share Buyback

Sep 2, 2026

MEGMILK SNOW BRAND Co., Ltd. has reported the results of its share repurchase activity conducted in August 2026 under an authorization based on Japan’s Companies Act. The company bought back 298,900 shares of common stock on the Tokyo Stock Exchange...

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: Nov 13, 2026