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MEC Company Ltd. (4971) AI Stock Analysis
MEC Company Ltd.
(TSE/TYO:4971)
The score is driven primarily by strong financial fundamentals (high margins and a zero-debt, steadily strengthening balance sheet), partially offset by weak cash-flow conversion and a clearly bearish technical setup (price below key moving averages with negative momentum). Valuation is supportive but not compelling enough to overcome the current technical weakness.
MEC Company Ltd. (4971) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 107.19B
- Dividend Yield
- 2.15%
- Average Volume (3M)
- 413.45K
- Price to Earnings (P/E)
- 17.4
- Beta (1Y)
- 1.49
- Revenue Growth
- 28.91%
- EPS Growth
- 172.68%
- Country
- Japan
- Employees
- 508
- Sector
- General
- Sector Strength
- 55
- Industry
- Chemicals - Specialty
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 Asian a...
MEC Company Ltd. Financial Statement Overview
Summary
Strong profitability and improving operating margin (to ~27% in 2025) plus a fortress balance sheet with zero debt and rising equity support a high score. The main drag is cash-flow quality: operating cash flow has often been below net income and free cash flow was notably weaker in 2025 (~31% of net income), indicating inconsistent cash conversion.
Income Statement
86Very PositiveBalance Sheet
94Very PositiveCash Flow
62Positive| 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 | 0 | 0 | 0 | 0 | 0 |
| 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 | 1.24B | 3.47B | 83.48M | 3.24B | 2.35B |
| Operating Cash Flow | 0 | 3.98B | 4.20B | 1.94B | 3.81B | 3.01B |
| Investing Cash Flow | 0 | -3.39B | 51.60M | -1.40B | -939.36M | -1.12B |
| Financing Cash Flow | 0 | -2.25B | -873.09M | -1.77B | -800.47M | -916.11M |
MEC Company Ltd. Technical Analysis
Price Trends
Market Momentum
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 5870.00 is below the 20-day moving average (MA) of 6640.00, below the 50-day MA of 6590.60, and below the 200-day MA of 7781.18, indicating a bearish trend. The MACD of -235.51 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 66.24 is Neutral, 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
Overall Rating
JP:463385Outperform
JP:495677Outperform
JP:411674Outperform
JP:447174Outperform- JP:497165Neutral
JP:462857Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4633 | 85Outperform | JPY 123.48B | 10.95 | ― | 3.71% | 8.94% | 22.70% |
| JP:4956 | 77Outperform | JPY 99.98B | 9.68 | ― | 2.48% | 6.76% | 29.50% |
| JP:4116 | 74Outperform | JPY 96.04B | 10.66 | ― | 3.86% | 1.64% | -24.06% |
| JP:4471 | 74Outperform | JPY 141.24B | 12.45 | 7.28% | 7.61% | -0.03% | 5.43% |
| JP:4971 | 65Neutral | JPY 108.62B | 17.41 | ― | 2.15% | 28.91% | 172.68% |
| JP:4628 | 57Neutral | JPY 166.83B | 10.13 | 8.48% | 1.25% | 8.62% | 68.78% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4971 | MEC Company Ltd. | 5870.00 | 1384.25 | 30.86% | |
| JP:4628 | SK Kaken Co | 10950.00 | 1979.67 | 22.07% | |
| JP:4471 | Sanyo Chemical Industries | 1593.00 | 576.29 | 56.68% | |
| JP:4116 | Dainichiseika Color & Chemicals Mfg.Co., Ltd. | 1328.00 | 423.54 | 46.83% | |
| JP:4633 | Sakata Inx Corp. | 2694.00 | 507.58 | 23.21% | |
| JP:4956 | Konishi Co., Ltd. | 1530.00 | 326.31 | 27.11% |
MEC Company Ltd. Corporate Events
MEC Company to Acquire Adjacent Nagaoka Factory Site for Future Upgrades
MEC Company Ltd. has approved the acquisition of land and buildings near its Nagaoka Factory in Nagaoka City, Niigata Prefecture, for approximately ¥2.3 billion, funded with its own capital. The property, to be handed over by March 31, 2027, is...
MEC Steps Up Semiconductor Chemical Capacity With ¥2 Billion Kitakyushu Expansion
MEC Company Ltd. is a Japan-based chemical manufacturer listed on the TSE Prime Market, specializing in chemical products used in electronic substrates and components, including semiconductor package substrates. The company targets growing demand in...
MEC Company Restructures Operating Officer Roles to Bolster Global Operations
MEC Company Ltd. operates in the chemical and materials sector, supplying specialized chemical solutions to industrial customers, with a focus on global sales and production operations. The company is listed on the Tokyo Stock Exchange Prime Market u...
MEC Company Raises 2026 Earnings Outlook on Strong AI-Driven Semiconductor Demand
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 adva...
MEC Company Delivers Strong 1H FY2026 on Chemicals Growth and FX Tailwinds
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 shipme...
MEC Company Ltd. Lifts Earnings and Dividend on Strong First-Half Performance
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 income...
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: Sep 09, 2026