Meiji Machine Co Ltd

Meiji Machine Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥2.45 billion, representing 35.6% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, with operating cash flow of ¥964 million and a current ratio of 1.64, indicating a solid ability to meet short-term obligations.

Profitability metrics show a return on equity (ROE) of 6.85% and a return on assets (ROA) of 3.17%, both below the industry median for industrial machinery firms. The operating margin of 6.95% (¥125.8 million operating income on ¥1.81 billion revenue) is also below the sector average, suggesting room for improvement in cost control or pricing power.

The company's revenue is concentrated in a few key markets, with disclosed exposure to the automotive and general manufacturing sectors. No geographic breakdown is available in the latest financials, but the company's primary operations are based in Japan, with potential export exposure to Asia and North America.

Looking ahead, the company is projected to see a modest increase in revenue, with a 2.3% year-over-year growth expected in the current fiscal year. Capital expenditures are expected to remain negative, indicating continued reinvestment in operations. The company's operating cash flow is expected to remain stable, supporting its liquidity position.

Risk factors include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company's debt-to-equity ratio of 0.51 is conservative, and the absence of near-term dilution pressures supports a stable capital structure.

Recent events include the release of the latest financial results, which showed a net income of ¥217.8 million. The company's shares have remained relatively stable, with no major announcements or regulatory actions reported in the past quarter.

Net margin of 12.0% ranks in the top quartile of the industrial machinery cohort, indicating superior profitability.

Cash conversion ratio of 4.43 is best-in-class compared to the cohort median of 0.95, showing strong efficiency.

Low dilution, liquidity, and credit risk flags suggest a stable financial profile with minimal immediate structural threats.

Free cash flow turned negative at -154.8 million JPY in FY2025, raising concerns about internal capital generation.

Debt-to-equity ratio of 0.51 is significantly higher than the cohort median of 0.20, implying elevated leverage risk.

Revenue ¥1.37B, −9,8% YoY; Operating income −146,7% YoY.

• ▍Revenue ¥1.37B, −9,8% YoY
• ▍Operating income −146,7% YoY
• ▍Net income −173,4% YoY
• ▍Net margin -4.5%

Revenue ¥1.10B, −21,5% YoY; Operating income +41,4% YoY.

• ▍Revenue ¥1.10B, −21,5% YoY
• ▍Operating income +41,4% YoY
• ▍Net income +42,4% YoY
• ▍Net margin -9.3%

Revenue ¥1.18B, +24,8% YoY; Operating income +94,6% YoY.

• ▍Revenue ¥1.18B, +24,8% YoY
• ▍Operating income +94,6% YoY
• ▍Net income +105,6% YoY
• ▍Net margin 0.6%

Revenue ¥2.65B, +46,5% YoY; Operating income +165,3% YoY.

• ▍Revenue ¥2.65B, +46,5% YoY
• ▍Operating income +165,3% YoY
• ▍Net income +52,5% YoY
• ▍Net margin 12.5%

Revenue ¥1.52B; Operating income ¥96.0M.

• ▍Revenue ¥1.52B
• ▍Operating income ¥96.0M
• ▍Net margin 5.6%

Revenue ¥1.39B; Operating income -¥207.3M.

• ▍Revenue ¥1.39B
• ▍Operating income -¥207.3M
• ▍Net margin -12.7%

Revenue ¥946.9M; Operating income -¥116.1M.

• ▍Revenue ¥946.9M
• ▍Operating income -¥116.1M
• ▍Net margin -12.6%

Revenue ¥1.81B; Operating income ¥125.8M.

• ▍Revenue ¥1.81B
• ▍Operating income ¥125.8M
• ▍Net margin 12.0%

Revenue ¥6.51B, +33,0% YoY; Operating income −41,0% YoY.

• ▍Revenue ¥6.51B, +33,0% YoY
• ▍Operating income −41,0% YoY
• ▍Net income −61,7% YoY
• ▍Free cash flow −46,6% YoY
• ▍Net margin 1.8%

Revenue ¥4.90B, −22,4% YoY; Operating income −1,0% YoY.

• ▍Revenue ¥4.90B, −22,4% YoY
• ▍Operating income −1,0% YoY
• ▍Net income −82,2% YoY
• ▍Free cash flow −106,4% YoY
• ▍Net margin 6.4%

Revenue ¥6.31B, −16,9% YoY; Operating income +227,8% YoY.

• ▍Revenue ¥6.31B, −16,9% YoY
• ▍Operating income +227,8% YoY
• ▍Net income +1 602,7% YoY
• ▍Free cash flow +1 430,0% YoY
• ▍Net margin 28.0%

Revenue ¥7.59B, −41,4% YoY; Operating income +88,4% YoY.

• ▍Revenue ¥7.59B, −41,4% YoY
• ▍Operating income +88,4% YoY
• ▍Net income +87,7% YoY
• ▍Free cash flow +90,1% YoY
• ▍Net margin -1.5%