TipRanks
Go Ultimate55% OFF

MEC Company Ltd. (4971) AI Stock Analysis

JP:4971

MEC Company Ltd.

(TSE/TYO:4971)

Select Model
Rating:71Outperform
Price Target:JPY 6,486.00â–²(10.49% Upside)
Action:reiterated
Date:09/07/26

The overall stock score is primarily driven by the company's pristine financial health, highlighted by a fortress-like, debt-free balance sheet and strong high-margin revenue growth. Its valuation remains fair with an 18.54 P/E and a 2.02% dividend yield. However, the score is heavily weighed down by very weak technicals, as the stock remains in a strong downtrend well below all major moving averages.

Positive Factors
High and improving marginsSustained gross margins near 60% and operating-margin expansion indicate strong underlying profitability and improving operating leverage. This gives the company more internal funding capacity for investment and resilience over the next several quarters, provided demand remains supportive.
Negative Factors
Weak cash conversionProfit conversion into cash has been inconsistent, with operating cash flow below net income in most reported years and especially weak free cash flow in 2025. This may constrain internally funded growth and makes reported earnings less dependable for assessing financial capacity.

MEC Company Ltd. (4971) vs. iShares MSCI Japan ETF (EWJ)

-25%0%25%50%75%100%125%150%175%JP:4971+31.15%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
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

The company exhibits elite financial health, driven by an immaculate, debt-free balance sheet and high-margin revenue growth. While profitability metrics are exceptional, cash flow conversion has recently softened relative to earnings.

Income Statement

92Very Positive

Balance Sheet

97Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue24.15B20.95B18.23B14.02B16.33B15.04B
Gross Profit15.18B12.98B11.10B8.32B9.80B9.32B
EBITDA8.30B6.57B5.38B3.27B4.76B4.68B
Net Income6.17B5.03B2.29B2.30B3.06B2.95B
Balance Sheet
Total Assets44.21B36.42B33.04B28.67B27.50B25.31B
Cash, Cash Equivalents and Short-Term Investments11.98B10.35B11.48B8.76B9.44B7.15B
Total Debt000000
Total Liabilities8.07B5.95B6.14B3.89B4.17B4.38B
Stockholders Equity36.13B30.47B26.90B24.78B23.33B20.93B
Cash Flow
Free Cash Flow01.24B3.47B83.48M3.24B2.35B
Operating Cash Flow03.98B4.20B1.94B3.81B3.01B
Investing Cash Flow0-3.39B51.60M-1.40B-939.36M-1.12B
Financing Cash Flow0-2.25B-873.09M-1.77B-800.47M-916.11M

MEC Company Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price5870.00

Price Trends

50DMA6590.60Negative
100DMA7991.17Negative
200DMA7781.18Negative

Market Momentum

MACD-235.51Positive
RSI38.74Neutral
STOCH66.24Neutral

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

UnderperformOutperform
Sector (55)

Financial Indicators

JP:4971 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4633JP:463385OutperformJPY 123.48B10.95―3.71%8.94%22.70%
JP:4956JP:495677OutperformJPY 99.98B9.68―2.48%6.76%29.50%
JP:4116JP:411674OutperformJPY 96.04B10.66―3.86%1.64%-24.06%
JP:4471JP:447174OutperformJPY 141.24B12.457.28%7.61%-0.03%5.43%
JP:4971JP:497171OutperformJPY 108.62B17.41―2.15%28.91%172.68%
JP:4628JP:462857NeutralJPY 166.83B10.138.48%1.25%8.62%68.78%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%150%JP:4971JP:4628JP:4471JP:4116JP:4633JP:4956Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4971 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4971MEC Company Ltd.5870.001384.2530.86%
JP:4628SK Kaken Co 10950.001979.6722.07%
JP:4471Sanyo Chemical Industries 1593.00576.2956.68%
JP:4116Dainichiseika Color & Chemicals Mfg.Co., Ltd.1328.00423.5446.83%
JP:4633Sakata Inx Corp.2694.00507.5823.21%
JP:4956Konishi Co., Ltd.1530.00326.3127.11%

MEC Company Ltd. Corporate Events

MEC Company to Acquire Adjacent Nagaoka Factory Site for Future Upgrades

Sep 30, 2026

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

Sep 30, 2026

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

Sep 25, 2026

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

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 adva...

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 shipme...

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 income...

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: Sep 09, 2026