Meiwa Industry Co., Ltd. (7284) AI Stock Analysis

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Meiwa Industry Co., Ltd.

(TSE/TYO:7284)

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Rating:57Neutral

Price Target:JPY 1,228.00▲(5.86% Upside)

Action:reiterated

Date:08/17/26

The overall score of 57 reflects a deeply mixed operational and market outlook. The most significant supportive factors are the company's robust balance sheet, a recent massive surge in cash flow generation, and a generous 4.2% dividend yield. However, these strengths are heavily suppressed by fundamental risks, including contracting revenues, razor-thin profit margins, an inflated P/E ratio, and prevailing bearish technical momentum.

Positive Factors

Improving Balance SheetLower leverage strengthens financial resilience and reduces balance-sheet pressure. If maintained, the improved capital structure should provide greater flexibility to fund operations and absorb fluctuations in automotive production volumes.

Negative Factors

Very Thin ProfitabilityExtremely thin margins leave little buffer for higher material, labor or logistics costs and make earnings vulnerable to modest volume or pricing changes. The return to profit is therefore not yet evidence of durable shareholder profitability.

Meiwa Industry Co., Ltd. (7284) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.06B
Dividend Yield: 4.31%
Average Volume (3M): 1,431
Price to Earnings (P/E): 87.7
Beta (1Y): 0.44
Revenue Growth: 4.85%
EPS Growth: -71.85%
Country: Japan
Employees: 372
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Meiwa Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Meiwa Industry Co., Ltd., based in Japan, is a manufacturer and vendor of automotive interior components. Its product portfolio, sold under brand names including Shiko, Zem-Light, Zem-Light SPS, and Meitone, covers areas like trunks, floor mats, and...

How the Company Makes Money

Meiwa Industry Co., Ltd. makes money primarily by manufacturing and selling automotive components to customers in the automotive industry, with revenue recognized from product shipments and supply contracts. Key revenue streams are expected to be tie...

Meiwa Industry Co., Ltd. Financial Statement Overview

Summary

Displays a highly polarized profile; profitability is exceptionally weak with razor-thin margins and contracting revenue, but this is offset by a strong balance sheet with low leverage and a spectacular recent turnaround in positive free cash flow generation.

Income Statement

45Neutral

Balance Sheet

75Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	23.47B	23.07B	23.25B	22.39B	21.20B	19.68B
Gross Profit	3.34B	3.30B	3.48B	2.51B	2.95B	3.02B
EBITDA	1.25B	1.26B	1.42B	452.45M	930.93M	1.05B
Net Income	46.26M	77.57M	452.88M	-305.54M	-73.83M	307.54M
Balance Sheet
Total Assets	22.43B	22.87B	25.19B	24.98B	23.68B	23.21B
Cash, Cash Equivalents and Short-Term Investments	4.41B	4.66B	3.57B	4.46B	3.38B	3.86B
Total Debt	4.10B	5.02B	6.40B	6.60B	5.63B	5.46B
Total Liabilities	10.16B	10.77B	13.18B	13.96B	12.62B	12.44B
Stockholders Equity	12.27B	12.11B	12.00B	11.02B	11.07B	10.78B
Cash Flow
Free Cash Flow	0	2.62B	-1.02B	-331.44M	-393.27M	-52.55M
Operating Cash Flow	0	3.67B	106.82M	560.31M	685.54M	661.24M
Investing Cash Flow	0	-1.10B	-877.45M	-409.17M	-1.12B	-148.12M
Financing Cash Flow	0	-1.53B	-331.54M	811.15M	-192.51M	-82.88M

Meiwa Industry Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1160.00

Price Trends

50DMA1148.26Positive

100DMA1164.96Negative

200DMA1178.86Negative

Market Momentum

MACD-8.30Negative

RSI56.72Neutral

STOCH71.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7284, the sentiment is Positive. The current price of 1160.00 is above the 20-day moving average (MA) of 1137.75, above the 50-day MA of 1148.26, and below the 200-day MA of 1178.86, indicating a neutral trend. The MACD of -8.30 indicates Negative momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 71.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7284.

Meiwa Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7284 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7212	69Neutral	JPY 13.51B	2.02	―	3.29%	2.75%	―
JP:7284	57Neutral	JPY 3.89B	87.75	―	4.31%	4.85%	-71.85%
JP:7214	56Neutral	JPY 5.32B	-26.27	―	3.97%	7.10%	-211.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7220	47Neutral	JPY 143.34B	81.69	―	1.62%	3.60%	-81.10%
JP:7215	46Neutral	JPY 3.80B	-2.55	―	―	-1.04%	-529.11%
JP:7277	43Neutral	JPY 10.13B	28.16	―	2.49%	9.09%	-58.13%

* General Sector Average

Performance Comparison

JP:7284 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7284	Meiwa Industry Co., Ltd.	1160.00	-19.71	-1.67%
JP:7212	F-Tech Inc.	730.00	56.87	8.45%
JP:7214	GMB Corporation	1008.00	171.71	20.53%
JP:7215	FALTEC Co., Ltd.	369.00	18.00	5.13%
JP:7220	Musashi Seimitsu Industry Co., Ltd.	2155.00	-727.27	-25.23%
JP:7277	TBK Co., Ltd.	321.00	-16.18	-4.80%

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: Aug 17, 2026

Meiwa Industry Co., Ltd. AI Stock Analysis