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MEC Company Ltd. (JP:4971)
:4971
Japanese Market

MEC Company Ltd. (4971) AI Stock Analysis

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JP

MEC Company Ltd.

(4971)

68Neutral
MEC Company Ltd. maintains a strong financial position characterized by revenue growth and a debt-free balance sheet. However, technical indicators suggest bearish market sentiment, and while valuation metrics appear reasonable, they do not significantly offset the technical downturn. The overall score is influenced by robust financials but tempered by current market momentum.

MEC Company Ltd. (4971) vs. S&P 500 (SPY)

MEC Company Ltd. Business Overview & Revenue Model

Company DescriptionMEC Company Ltd. (4971) is a Japanese corporation engaged in the production and sale of chemicals and materials used primarily in the electronics and information technology industries. The company's core products include chemicals for printed circuit board (PCB) manufacturing and other materials that are essential in the electronics production process. MEC Company Ltd. is recognized for its innovative solutions and dedication to advancing technology in the electronics sector.
How the Company Makes MoneyMEC Company Ltd. generates revenue primarily through the sale of specialty chemicals and materials used by electronics manufacturers. The company's key revenue streams include the production and distribution of PCB chemicals, which are critical for the manufacturing of electronic devices. Additionally, MEC Company Ltd. may engage in strategic partnerships with other industry players to enhance its product offerings and expand its market reach, further contributing to its earnings. The company's focus on R&D and innovation helps it maintain a competitive edge and meet the evolving demands of the electronics industry.

MEC Company Ltd. Financial Statement Overview

Summary
MEC Company Ltd. demonstrates a solid financial position with strong revenue growth, efficient operations, and a debt-free balance sheet. Despite a slight decline in net profit margin, the company's cash flows are robust, supporting its growth trajectory and financial stability.
Income Statement
MEC Company Ltd. exhibits strong financial performance with consistent revenue growth, rising from JPY 10.87 billion in 2019 to JPY 18.23 billion in 2024, reflecting a robust growth trend. Gross profit margins are solid, averaging around 61% over the years, indicating efficient cost management. The company maintains healthy EBIT and EBITDA margins, showcasing operational efficiency. However, the net profit margin has slightly declined recently, warranting monitoring.
Balance Sheet
90
The company's balance sheet is strong, characterized by zero total debt, highlighting a very conservative financial strategy. The equity ratio is high, demonstrating financial stability and low risk. With substantial cash reserves, MEC is well-positioned to capitalize on future opportunities. Return on Equity (ROE) remains respectable, reflecting effective use of shareholder funds.
Cash Flow
MEC Company Ltd. demonstrates robust cash flow generation, with a significant increase in free cash flow over the years. The operating cash flow to net income ratio is consistently high, indicating strong cash earnings. Despite fluctuations in capital expenditures, free cash flow growth is positive, supporting future reinvestment and shareholder returns.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
18.23B14.02B16.33B15.04B11.96B
Gross Profit
11.10B8.32B9.80B9.32B7.40B
EBIT
4.56B2.49B4.00B3.94B2.37B
EBITDA
5.38B3.99B4.98B4.84B3.10B
Net Income Common Stockholders
2.29B2.30B3.06B2.95B1.60B
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.48B8.76B9.44B7.15B5.58B
Total Assets
33.04B28.67B27.50B25.31B21.51B
Total Debt
0.000.000.000.00400.00M
Net Debt
-11.48B-6.69B-9.44B-7.15B-5.18B
Total Liabilities
6.14B3.89B4.17B4.38B4.04B
Stockholders Equity
26.90B24.78B23.33B20.93B17.47B
Cash FlowFree Cash Flow
3.47B58.91M3.21B2.31B1.40B
Operating Cash Flow
4.20B1.94B3.81B3.01B2.43B
Investing Cash Flow
51.00M-1.40B-939.36M-1.12B-1.15B
Financing Cash Flow
-873.00M-1.77B-800.47M-916.11M-771.81M

MEC Company Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2482.00
Price Trends
50DMA
2373.46
Positive
100DMA
2835.23
Negative
200DMA
3260.61
Negative
Market Momentum
MACD
1.06
Negative
RSI
62.86
Neutral
STOCH
94.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4971, the sentiment is Neutral. The current price of 2482 is above the 20-day moving average (MA) of 2132.70, above the 50-day MA of 2373.46, and below the 200-day MA of 3260.61, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 94.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4971.

MEC Company Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$8.94T16.8011.81%2.39%6.06%3.97%
74
Outperform
$3.68T14.647.77%2.13%7.29%4.85%
72
Outperform
$275.53B10.977.16%4.75%10.04%-13.43%
68
Neutral
¥47.17B20.28
1.81%30.06%-0.11%
64
Neutral
$602.92B11.935.83%4.49%5.15%-8.48%
63
Neutral
¥222.73B8.166.01%3.37%6.27%59.86%
49
Neutral
$1.96B-1.23-21.20%3.72%0.88%-29.24%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4971
MEC Company Ltd.
2,482.00
-1,318.00
-34.68%
JP:4205
Zeon
1,398.50
-4.82
-0.34%
JP:4063
Shin-Etsu Chemical Co
4,528.00
-1,108.80
-19.67%
JP:4183
Mitsui Chemicals
3,171.00
-1,075.75
-25.33%
JP:4901
FUJIFILM Holdings
3,053.00
-340.52
-10.03%
JP:4118
Kaneka
3,522.00
-442.25
-11.16%

MEC Company Ltd. Corporate Events

MEC Company Ltd. Strengthens Corporate Governance and Diversity Initiatives
Mar 26, 2025

MEC Company Ltd. has announced its commitment to reinforcing corporate governance to maximize stakeholder returns and enhance corporate value. The company is actively promoting diversity in management and has implemented policies to ensure fair decision-making and transparency. MEC’s strategic initiatives include maintaining necessary shares for business relationships, exercising voting rights responsibly, and enhancing information disclosure. These efforts are aimed at sustainable growth and aligning with the Corporate Governance Code, which positions MEC favorably in the industry and benefits its stakeholders.

MEC Company Ltd. Corrects Financial Results for FY 2024
Mar 25, 2025

MEC Company Ltd. announced corrections to its previously released Consolidated Financial Results for the fiscal year ended December 31, 2024. The corrections pertain to the cash flow indicators, specifically the equity ratio based on market value, which was adjusted from 249.1% to 198.6%. This correction may impact stakeholders’ perceptions of the company’s financial health and market valuation.

MEC Company Ltd. Revises Kitakyushu Plant Plans Amid Market Expansion
Mar 14, 2025

MEC Company Ltd. has announced a revision in its plans for the new Kitakyushu Plant, initially set to commence operations in October 2025, now postponed to December 2026. This change is driven by the need to accommodate a broader range of product demands and secure future production capacity, reflecting the company’s strategic response to evolving market conditions. The delay is expected to have minimal impact on the financial results for the fiscal year ending December 31, 2025.

MEC Company Ltd. to Receive Dividends from Subsidiary
Mar 14, 2025

MEC Company Ltd. announced its decision to receive dividends from its subsidiary, MEC (Hong Kong) Ltd., which is scheduled for liquidation. The dividend amount of 107 million HK dollars will be recorded as non-operating income in the company’s non-consolidated financial statements, with no impact on the consolidated financial results for the interim period ending December 31, 2025.

MEC Company Ltd. Enhances Investor Communication with Sponsored Report
Mar 6, 2025

MEC Company Ltd. has commissioned a sponsored research report to enhance communication with international investors and improve their understanding of the company’s business model and future vision. The report, prepared by Nippon Investment Bespoke Research UK Ltd, aims to support investor relations by providing insights into the company’s past earnings trends and management strategies.

MEC Company Ltd. Reports Strong Financial Performance for FY2024
Feb 21, 2025

MEC Company Ltd. reported strong financial results for the fiscal year ended December 31, 2024, with net sales increasing by 30.1% and operating income rising by 83.0% compared to the previous year. However, the profit attributable to owners of the parent declined slightly by 0.6%. The company’s financial position strengthened with an increase in total assets and net assets, though the equity-to-asset ratio decreased. Cash flow from operating activities showed a significant improvement, emphasizing the company’s robust operational performance. The company also announced a dividend payment plan, highlighting its commitment to returning value to shareholders.

MEC Company Ltd. Commits to TCFD Recommendations and Climate Governance
Feb 14, 2025

MEC Company Ltd. has announced its commitment to the TCFD recommendations, emphasizing climate change as a significant management issue. The company has established an ESG Committee chaired by the CEO to oversee climate-related risks and opportunities, with the Board of Directors ultimately responsible for policy decisions and effectiveness of measures.

MEC Company Ltd. Announces Leadership Restructuring
Feb 14, 2025

MEC Company Ltd. announced a significant restructuring of its leadership team, with new appointments and retirements of directors and operating officers. This move is expected to enhance the company’s strategic direction and operational efficiency, potentially impacting its market positioning and stakeholder relationships positively.

MEC Company Reports Lower than Expected Earnings Due to Restructuring
Feb 14, 2025

MEC Company Ltd. announced a discrepancy between their forecasted and actual consolidated earnings for the fiscal year ended December 31, 2024. The actual results showed lower earnings than forecasted due to increased corporate taxes resulting from the dissolution and liquidation of MEC (Hong Kong) Ltd., and restructuring efforts to make MEC Fine Chemical (Zhuhai) Ltd. a wholly owned subsidiary, impacting the company’s overall financial performance.

MEC Company Ltd. Reports Robust Financial Growth for FYE 2024
Feb 14, 2025

MEC Company Ltd. reported significant financial growth for the fiscal year ending December 2024, with sales increasing by 30.1% year-over-year to 18,234 million yen and operating income rising by 83% to 4,562 million yen. This positive financial performance is attributed to strong sales in their major products and favorable exchange rate impacts, enhancing the company’s market positioning and potentially benefiting stakeholders.

MEC Company Ltd. Reports Robust Growth in 2024 Financial Results
Feb 14, 2025

MEC Company Ltd. announced its consolidated financial results for the fiscal year ended December 31, 2024, reporting substantial growth in net sales and operating income, with net sales reaching ¥18,234 million, a 30.1% increase, and operating income soaring by 83%. However, profit attributable to owners slightly declined by 0.6%. The company’s strategic focus on enhancing operational efficiency has led to improvements in its financial position and cash flows, reflecting a robust performance that may positively influence stakeholder confidence.

MEC Company Ltd. Embraces TCFD Recommendations to Tackle Climate Change
Feb 14, 2025

MEC Company Ltd. has announced its commitment to the TCFD recommendations by disclosing information on climate-related risks and opportunities and outlining countermeasures in alignment with these guidelines. The company’s governance structure, led by the CEO & President through the ESG Committee, actively deliberates and implements strategies to manage climate-related challenges, with oversight by the Board of Directors to ensure effective execution and achievement of climate targets.

MEC Company Ltd. Announces Key Leadership Changes
Feb 14, 2025

MEC Company Ltd. has announced a significant reshuffle in its leadership, with new appointments and retirements among its Directors and Operating Officers. This strategic move, involving key positions such as Director and Operating Officer, is set to officially take place following the upcoming Ordinary General Meeting of Shareholders in March 2025. The appointments are expected to strengthen MEC’s management team and enhance its strategic operations, which could potentially influence its market positioning and stakeholder relationships.

MEC Company Reports Discrepancy in 2024 Earnings Due to Strategic Restructuring
Feb 14, 2025

MEC Company Ltd. announced differences between their forecasted and actual consolidated earnings for the fiscal year ending December 31, 2024, citing a shortfall due to increased taxes arising from corporate restructuring. This restructuring involved dissolving MEC (HONG KONG) LTD. and making MEC FINE CHEMICAL (ZHUHAI) LTD. a wholly owned subsidiary, impacting their financial results significantly.

MEC Company Ltd. Reports Strong Financial Growth for FYE 2024
Feb 14, 2025

MEC Company Ltd. reported a significant increase in its financial performance for the fiscal year ending December 2024, with sales rising by 30.1% to 18,234 million yen and operating income up by 83% to 4,562 million yen. The company attributed this growth to increased sales of major products and favorable exchange rate impacts, indicating a strong positioning in the chemical industry and positive implications for stakeholders.

MEC Company Ltd. Reports Strong Financial Growth for FY2024
Feb 14, 2025

MEC Company Ltd. reported a significant increase in its financial performance for the fiscal year ended December 31, 2024, with net sales up by 30.1% and an 83% rise in operating income compared to the previous year. The company’s strong financial results, despite a slight decrease in profit attributable to owners, highlight its robust market position and operational efficiency, positively impacting stakeholders and reinforcing its competitive stance within the industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.