Meiji Holdings Co (MEJHF) AI Stock Analysis

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Meiji Holdings Co (MEJHF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.09B

Dividend Yield2.98%

Average Volume (3M)0.00

Price to Earnings (P/E)18.2

Beta (1Y)-0.20

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees17,270

SectorConsumer Defensive

Sector Strength63

IndustryPackaged Foods

Share Statistics

EPS (TTM)0.19

Shares Outstanding282,200,000

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio38.85

Price to Book (P/B)1.24

Price to Sales (P/S)0.00

P/FCF Ratio69.93

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$24.22

Price Target Upside8.81% Upside

Rating ConsensusHold

Number of Analyst Covering1

Meiji Holdings Co Business Overview & Revenue Model

Company DescriptionMeiji Holdings Co., Ltd., through its subsidiaries, manufactures and sells dairy products, confectioneries, nutritional products, and pharmaceuticals in Japan and internationally. The company operates through two segments, Food and Pharmaceutical. It provides yogurt, drinking milk, beverages, cheese, butter and margarine, cream, ice cream, frozen foods, chocolates, gummy products, chewing gums, candies, sports nutrition products, infant and eternal formula, beauty supplements, OTC drugs, livestock products, and sugar, as well as transportation and distribution services. The company also provides drugs for infectious diseases and central nervous system disorders, as well as generic drugs; agricultural and livestock chemicals; human and veterinary vaccines, and blood plasma products; and veterinary drugs for livestock and fisheries comprising antimicrobial injection, oral administration, antipyretic, analgesic, anti-inflammatory, hemostatic, and breeding agents, disinfectants, insecticides, anthelmintics, metabolites, feed additives, and mixed feed; and companion animals, including anesthetics and painkillers, anti-parasitic and gastrointestinal drugs, anti-bacterial agents, antiplasmin agents, vitamin E preparations, and dietary supplements. Meiji Holdings Co., Ltd. was founded in 1916 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Meiji Holdings Co Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q2-2025)

% Change Since: -9.88%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with strong performances in the Pharmaceutical segment and growth in certain brands, but faced challenges in the Food segment, particularly in China and the U.S. The decline in profits and the revised vaccine outlook were notable concerns.

Q2-2025 Updates

Positive Updates

Increase in Consolidated Net Sales

Consolidated net sales for the first half of fiscal 2024 was JPY 569.0 billion, a year-on-year increase of 4.2%.

Pharmaceutical Segment Performance

Net sales in the Pharmaceutical segment totaled JPY 113.8 billion, a year-on-year increase of 12.9%. Operating profit in this segment increased by 16.7% year-on-year.

Advanced Shipment of Influenza Vaccines

Advanced shipment of influenza vaccines contributed JPY 1.3 billion to the increase in profit.

Growth in Antibacterial Drug Sales

Sales of antibacterial injection increased, positively impacting the Pharmaceutical segment's performance.

Strong Performance of Domestic Business

Growth in sales, including high-profit items, is expected to continue in the second half, mainly driven by the domestic business.

Strong Growth in Hello Panda Brand

Hello Panda is expected to achieve JPY 19.9 billion in sales for the fiscal year, showing strong growth, particularly in the U.S.

Negative Updates

Decline in Profit Attributable to Owners

Profit attributable to owners of parent was JPY 26.8 billion, a year-on-year decline of 3.8% due to decreased extraordinary gains.

Challenges in Food Segment Operating Profit

Operating profit in the Food segment was JPY 27.6 billion, down 6.9% year-on-year, affected by increased raw material costs and declining profits from overseas operations.

Struggles in China and U.S. Operations

Subsidiaries in China and the U.S. experienced declining profits, impacting overall performance.

Deterioration in Product Mix

High-margin products such as probiotics and functional yogurt did not reach the planned targets, leading to a deteriorated product mix.

Decrease in Functional Yogurt Sales

Functional yogurt sales declined by 7% year-on-year, indicating a tough market situation.

Revised Downward Outlook for KOSTAIVE Vaccine

Shipment forecast for the KOSTAIVE vaccine was revised to less than half due to sluggish inoculation rates.

Company Guidance

In the earnings call for Q2 2025, Meiji Holdings provided comprehensive guidance on its financial performance and future outlook. For the first half of fiscal 2024, the company reported consolidated net sales of JPY 569.0 billion, marking a 4.2% increase year-on-year. However, operating profit remained steady at JPY 44.3 billion, while profit attributable to owners of the parent decreased by 3.8% to JPY 26.8 billion due to lower extraordinary gains. The Food segment experienced a 2.2% increase in net sales to JPY 455.4 billion, although operating profit declined by 6.9% year-on-year, affected by increased raw material costs and challenges in overseas operations. Meanwhile, the Pharmaceutical segment saw a significant boost, with net sales rising by 12.9% to JPY 113.8 billion and operating profit increasing by 16.7% to JPY 18.5 billion, aided by strong sales of antibacterial injections and influenza vaccines. For the second half, Meiji plans to achieve a year-on-year increase in consolidated net sales to JPY 589.9 billion and an operating profit of JPY 41.6 billion, focusing on price adjustments and strategic marketing to counter cost pressures.

Meiji Holdings Co Financial Statement Overview

Summary

Overall, Meiji Holdings Co exhibits strong financial health with consistent revenue growth and solid equity standing. While profitability remains solid, increasing debt levels and a slight decline in some margins warrant attention. The company's cash flow generation remains stable, supporting its ongoing operations and investments.

Income Statement

Positive

The income statement indicates a strong performance with stable gross and net profit margins. The company achieved a Gross Profit Margin of 29.41% and a Net Profit Margin of 4.30% in TTM. However, there was a slight decline in EBIT and EBITDA margins from the previous year, suggesting potential cost pressures. Revenue growth has been consistent, with a 7.54% growth from the previous period, although it has slowed compared to earlier years.

Balance Sheet

Very Positive

The balance sheet shows a robust financial position with a healthy Equity Ratio of 61.02%, indicating a strong reliance on equity financing. The Return on Equity is satisfactory at 6.64% in TTM. However, the Debt-to-Equity Ratio increased to 0.12, reflecting a rise in total debt, which could pose a risk if not managed carefully.

Cash Flow

Positive

Cash flow analysis highlights a positive Free Cash Flow to Net Income Ratio of 0.27, indicating efficient cash generation relative to net income. However, Free Cash Flow has seen a decline from previous highs, and Operating Cash Flow to Net Income Ratio stands at 1.37, reflecting stable operational cash flow generation.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
1.15T	1.11T	1.06T	1.01T	1.19T	1.25T
	Gross Profit
337.42B	336.88B	306.80B	323.25B	449.63B	462.52B
	EBIT
81.06B	84.32B	75.43B	92.92B	106.06B	102.71B
	EBITDA
136.39B	143.20B	129.03B	143.04B	154.49B	144.70B
	Net Income Common Stockholders
49.35B	50.67B	69.42B	87.50B	65.66B	67.32B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.16B	106.86B	63.52B	67.41B	40.33B	37.45B
	Total Assets
1.22T	1.21T	1.14T	1.12T	1.07T	998.64B
	Total Debt
91.90B	49.93B	64.37B	81.27B	101.78B	106.76B
	Net Debt
6.09B	-56.93B	851.00M	13.86B	61.45B	69.32B
	Total Liabilities
430.94B	417.50B	384.91B	404.44B	407.64B	401.07B
	Stockholders Equity
742.90B	746.53B	711.91B	673.34B	621.43B	562.75B
Cash Flow		Free Cash Flow
13.16B	54.54B	12.84B	34.36B	55.78B	42.97B
	Operating Cash Flow
67.38B	107.98B	85.01B	127.53B	123.68B	114.10B
	Investing Cash Flow
-17.18B	-24.60B	-36.79B	-27.61B	-93.11B	-70.81B
	Financing Cash Flow
-50.54B	-43.77B	-54.73B	-77.00B	-28.29B	-30.29B

Meiji Holdings Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEJHF		$6.09B	18.24	6.71%	2.98%	―	―
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
NFPDF		$6.08B	17.00	11.20%	2.26%	―	―
NI6		€3.01B	18.91	4.96%	2.77%	―	―
TSUKF		$6.43B	15.42	13.14%	2.09%	―	―
NI3		€2.91B	19.17	9.55%	2.49%	―	―
2002	60 Neutral	¥487.25B	14.64		3.20%	-0.79%	9.92%

* Consumer Defensive Sector Average

Performance Comparison

MEJHF

Meiji Holdings Co

22.24

0.32

1.46%

NFPDF

Nissin Foods Holdings Co

21.28

-4.33

-16.91%

DE:NI6

NH Foods

30.40

2.76

9.99%

TSUKF

Toyo Suisan Kaisha

62.80

1.23

2.00%

DE:NI3

Nichirei Corporation

11.40

0.85

8.06%

JP:2002

Nisshin Seifun Group Inc.

1,713.50

-33.51

-1.92%

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.