Want to see JP:4971 full AI Analyst Report?
Top Page
MEC Company Ltd.
(4971)
Select Model
Select Model
Rating:71Outperform
Price Target:
¥7,558.00
▲(40.74% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily supported by strong financial performance—high margins and a fortress-like, debt-free balance sheet—partly offset by inconsistent cash flow conversion. Technical indicators are mixed with negative MACD and only moderate momentum, and valuation looks relatively full given a ~25.7 P/E and modest ~1.48% yield.
Positive Factors
Strong and improving profitability
Sustained high gross margins and a substantially improved operating margin indicate pricing power, operational efficiency, and a potentially durable earnings base, although future results may still vary with business conditions.
Negative Factors
Inconsistent operating cash conversion
Repeatedly converting less than the full amount of accounting profit into operating cash may reflect working-capital demands or other cash absorption. This reduces earnings quality and can constrain internally funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong and improving profitability
Sustained high gross margins and a substantially improved operating margin indicate pricing power, operational efficiency, and a potentially durable earnings base, although future results may still vary with business conditions.
Read all positive factors
MEC Company Ltd. (4971) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥126.57B
Dividend Yield1.89%
Average Volume (3M)283.30K
Price to Earnings (P/E)19.7
Beta (1Y)1.45
Revenue Growth28.91%
EPS Growth172.68%
CountryJP
Employees508
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)337.09
Shares Outstanding19,571,093
10 Day Avg. Volume234,540
30 Day Avg. Volume283,300
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)3.09
Price to Sales (P/S)4.50
P/FCF Ratio75.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)325.08
Revenue Forecast (FY)¥26.03B
MEC Company Ltd. Business Overview & Revenue Model
Company Description
Founded in 1969 and headquartered in Amagasaki, Japan, MEC Company Ltd. specializes in the research, development, manufacturing, and distribution of chemicals, equipment, and materials crucial for printed circuit board (PCB) production across Asia...
MEC Company Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.15B | 20.95B | 18.23B | 14.02B | 16.33B | 15.04B |
| Gross Profit | 15.18B | 12.98B | 11.10B | 8.32B | 9.80B | 9.32B |
| EBITDA | 8.30B | 6.57B | 5.38B | 3.27B | 4.76B | 4.68B |
| Net Income | 6.17B | 5.03B | 2.29B | 2.30B | 3.06B | 2.95B |
Balance Sheet | ||||||
| Total Assets | 44.21B | 36.42B | 33.04B | 28.67B | 27.50B | 25.31B |
| Cash, Cash Equivalents and Short-Term Investments | 11.98B | 10.35B | 11.48B | 8.76B | 9.44B | 7.15B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 8.07B | 5.95B | 6.14B | 3.89B | 4.17B | 4.38B |
| Stockholders Equity | 36.13B | 30.47B | 26.90B | 24.78B | 23.33B | 20.93B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.24B | 3.47B | 83.48M | 3.24B | 2.35B |
| Operating Cash Flow | 0.00 | 3.98B | 4.20B | 1.94B | 3.81B | 3.01B |
| Investing Cash Flow | 0.00 | -3.39B | 51.60M | -1.40B | -939.36M | -1.12B |
| Financing Cash Flow | 0.00 | -2.25B | -873.09M | -1.77B | -800.47M | -916.11M |
MEC Company Ltd. Technical Analysis
Negative
5370.00
Price Trends
8904.20
Negative
9186.85
Negative
7454.67
Negative
Market Momentum
-603.44
Positive
38.13
Neutral
15.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4971, the sentiment is Negative. The current price of 5370 is below the 20-day moving average (MA) of 7817.00, below the 50-day MA of 8904.20, and below the 200-day MA of 7454.67, indicating a bearish trend. The MACD of -603.44 indicates Positive momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 15.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4971.
MEC Company Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥121.56B | 10.94 | ― | 3.72% | 8.94% | 22.70% | |
82 Outperform | ¥143.83B | 12.44 | 10.36% | 3.33% | -0.03% | 5.43% | |
81 Outperform | ¥140.01B | 8.45 | 7.27% | 0.43% | 8.62% | 68.78% | |
77 Outperform | ¥96.32B | 10.56 | ― | 3.02% | 3.44% | 15.09% | |
74 Outperform | ¥101.54B | 11.10 | ― | 3.04% | 1.64% | -24.06% | |
71 Outperform | ¥126.57B | 19.73 | ― | 0.93% | 28.91% | 172.68% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:4971
MEC Company Ltd.
6,650.00
3,695.49
125.08%
JP:4628
SK Kaken Co
9,130.00
189.34
2.12%
JP:4471
Sanyo Chemical Industries
6,370.00
2,240.01
54.24%
JP:4116
Dainichiseika Color & Chemicals Mfg.Co., Ltd.
1,383.00
469.00
51.31%
JP:4633
Sakata Inx Corp.
2,692.00
521.89
24.05%
JP:4956
Konishi Co., Ltd.
1,477.00
212.28
16.79%
MEC Company Ltd. Corporate Events
MEC Company Raises 2026 Earnings Outlook on Strong AI-Driven Semiconductor Demand
Aug 10, 2026
MEC Company Ltd., a Japanese chemical maker focused on materials for advanced semiconductor package substrates, is strengthening its position in the high-tech supply chain as demand rises alongside the expansion of generative AI. Its exposure to a...
MEC Company Delivers Strong 1H FY2026 on Chemicals Growth and FX Tailwinds
Aug 10, 2026
MEC Company Ltd. reported a strong first half for the fiscal year ending December 2026, with sales rising 34.2% to 12,594 million yen and operating income surging 69.4%. Chemical sales climbed 37.4% to 12,402 million yen on a 21.9% increase in shi...
MEC Company Ltd. Lifts Earnings and Dividend on Strong First-Half Performance
Aug 10, 2026
MEC Company Ltd. reported strong interim results for the six months to June 30, 2026, with net sales rising 34.2% year on year to ¥12.6 billion and operating income surging 69.4% to ¥4.1 billion. Ordinary income climbed 72.6% and net inc...
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.