Meiko Network Japan Co., Ltd. (4668) AI Stock Analysis

• Market Cap: ¥18.06B
• Dividend Yield: 3.47%
• Average Volume (3M): 54.49K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.36
• Revenue Growth: 9.70%
• EPS Growth: 45.81%
• Country: JP
• Employees: 1,197
• Sector: Consumer Defensive
• Sector Strength: 68
• Industry: Education & Training Services
• EPS (TTM): 38.81
• Shares Outstanding: 27,803,600
• 10 Day Avg. Volume: 35,880
• 30 Day Avg. Volume: 54,486
• PEG Ratio: 0.94
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Meiko Network Japan Co., Ltd. has a solid financial foundation with strong revenue growth and stable balance sheet metrics. However, profitability challenges and neutral technical indicators suggest some caution. Valuation metrics are reasonable, offering a fair investment opportunity, particularly for dividend investors. Overall, while the company is on a stable growth path, it should focus on enhancing profitability to improve its stock performance.

Meiko Network Japan Co., Ltd. Business Overview & Revenue Model

Company Description

Meiko Network Japan Co., Ltd. is a leading educational services company based in Japan. It specializes in providing tutoring and educational support services through its network of cram schools, known as 'juku', which cater to students from elementary to high school. The company focuses on personalized learning, offering one-on-one or small group classes designed to improve academic performance and prepare students for entrance exams.

How the Company Makes Money

Meiko Network Japan Co., Ltd. generates revenue primarily through tuition fees collected from students enrolled in its tutoring programs. These fees are charged for the personalized educational services provided at their cram schools. Additionally, the company may earn income from franchise operations, where it partners with local businesses to expand its network of schools. This franchise model allows the company to grow its geographical presence while sharing the financial responsibilities and operational duties with franchisees. The company's revenue can also be influenced by the demand for its services, which is often driven by the competitive nature of education in Japan and the importance placed on entrance exams for academic progression.

Meiko Network Japan Co., Ltd. Financial Statement Overview

Summary

Meiko Network Japan Co., Ltd. demonstrates strong revenue growth and financial stability with minimal leverage. However, profitability metrics indicate challenges, with a declining net profit margin and return on equity. The company's cash flow position is improving, albeit with room for better conversion of profits into free cash flow. Overall, the company is on a stable growth trajectory but needs to focus on enhancing profitability.

Income Statement

The company's revenue has shown consistent growth with a 8.18% increase in 2024 compared to 2023. Gross profit margin remains healthy at 23.32% in 2024. However, net profit margin has declined to 2.17% due to a drop in net income, indicating potential profitability issues. EBIT and EBITDA margins have remained stable, reflecting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating minimal leverage risks. The equity ratio stands at a strong 66.98%, showcasing financial stability. Return on equity has decreased to 4.49%, reflecting a need for improved profitability.

Cash Flow

Free cash flow has grown by 46.07%, indicating improved cash management. The operating cash flow to net income ratio is robust, suggesting strong cash generation relative to earnings. However, the free cash flow to net income ratio is lower, pointing to potential challenges in converting earnings into free cash flow.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
23.12B	22.58B	20.87B	19.67B	19.04B	18.22B
	Gross Profit
5.55B	5.26B	5.05B	5.05B	5.13B	4.40B
	EBIT
1.37B	1.01B	1.06B	1.17B	969.00M	378.00M
	EBITDA
1.55B	1.39B	1.40B	1.43B	1.23B	-806.00M
	Net Income Common Stockholders
817.00M	489.00M	809.00M	974.00M	1.14B	-2.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.51B	7.87B	8.57B	8.76B	8.93B	7.32B
	Total Assets
16.33B	16.24B	15.81B	15.44B	14.65B	14.04B
	Total Debt
25.00M	26.00M	6.00M	11.00M	8.00M	10.00M
	Net Debt
-7.49B	-7.84B	-8.47B	-8.74B	-8.72B	-7.00B
	Total Liabilities
5.19B	5.36B	4.61B	4.83B	4.63B	4.57B
	Stockholders Equity
11.14B	10.88B	11.20B	10.60B	10.02B	9.47B
Cash Flow		Free Cash Flow
0.00	520.00M	356.00M	285.00M	553.00M	-177.00M
	Operating Cash Flow
0.00	742.00M	608.00M	489.00M	742.00M	140.00M
	Investing Cash Flow
0.00	-595.00M	-307.00M	150.00M	1.70B	1.24B
	Financing Cash Flow
0.00	-863.00M	-588.00M	-653.00M	-628.00M	-2.06B

Meiko Network Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 716.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4668, the sentiment is Negative. The current price of 716 is below the 20-day moving average (MA) of 723.85, below the 50-day MA of 738.32, and above the 200-day MA of 706.63, indicating a neutral trend. The MACD of -4.57 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4668.

Meiko Network Japan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9780	70 Outperform	¥6.78B	7.47		3.69%	4.13%	9.17%
4668	66 Neutral	¥18.06B	18.55		3.47%	9.70%	45.81%
9733	66 Neutral	¥53.52B	24.78		5.43%	4.28%	-24.83%
Sector *	64 Neutral	$8.82B	14.70	4.78%	173.90%	3.26%	2.11%
6178	62 Neutral	¥3.93T	11.07	3.78%	3.62%	6.19%	21.48%
4705	55 Neutral	¥2.97B	32.17		5.58%	0.79%	215.26%

Meiko Network Japan Co., Ltd. Corporate Events

Meiko Network Japan Announces Leadership Changes

Meiko Network Japan Co., Ltd. announced changes in its leadership structure, with Kazuhito Yamashita assuming the role of Chairperson and Representative Director, and Katsuki Saito being elected as a Senior Executive Officer. These changes, effective June 1, 2025, are expected to impact the company’s operations and strategic direction, particularly in the Meikogijuku Business Headquarters.

Meiko Network Japan Revises Financial Forecast Upward Amid Strong Q2 Performance

Meiko Network Japan Co., Ltd. announced a significant upward revision of its consolidated financial results forecast for the fiscal year ending August 31, 2025, following better-than-expected performance in the second quarter. The company’s core businesses, including Meiko Gijuku and Japanese language schools, saw increased student enrollment and improved earnings, contributing to higher net sales and operating profits. Strategic cost reductions and resource allocation also played a role in this positive outcome. Moving forward, Meiko Network plans to capitalize on this momentum by strengthening human capital management, investing in environmental improvements, and pursuing strategic growth through M&A activities.

Meiko Network Japan Reports Robust Financial Growth for H1 2025

Meiko Network Japan Co., Ltd. reported a strong financial performance for the six months ending February 28, 2025, with significant increases in net sales and profits compared to the previous year. The company’s net sales rose by 9.7% to ¥12,232 million, while operating profit surged by 74.2% to ¥1,473 million. The positive financial results reflect the company’s robust market positioning and effective operational strategies, which are likely to have a favorable impact on stakeholders and enhance its competitive edge in the education sector.

Meiko Network Japan Wins Legal Battle Over Franchise Violations

Meiko Network Japan Co., Ltd. has successfully upheld its claims in a lawsuit against Meiko Network Kyushu CO., LTD. and others, regarding trademark infringement and franchise agreement violations. The Tokyo District Court recognized the validity of Meiko Network Japan’s cancellation of the area franchise agreement due to defaults by the defendants, including non-payment of royalties and fraudulent reporting, resulting in significant financial penalties and injunctions against the use of Meiko Gijuku trademarks by the defendants.