Valuation Update With 7 Day Price Move • Jul 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥8,870, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 153% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥12,080 per share. Buy Or Sell Opportunity • Jul 06
Now 21% undervalued Over the last 90 days, the stock has risen 38% to JP¥9,600. The fair value is estimated to be JP¥12,079, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 26%. Revenue is forecast to grow by 34% in 2 years. Earnings are forecast to grow by 15% in the next 2 years. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 02 September 2026. Payout ratio is a comfortable 31% but the company is paying out more than the cash it is generating. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.9%). Lower than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥9,080, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 179% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥11,546 per share. Announcement • Jun 03
MEC Company Ltd. to Report Q2, 2026 Results on Aug 10, 2026 MEC Company Ltd. announced that they will report Q2, 2026 results on Aug 10, 2026 Major Estimate Revision • May 23
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥23.8b to JP¥25.1b. EPS estimate increased from JP¥275 to JP¥318 per share. Net income forecast to shrink 3.7% next year vs 5.3% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥8,900 unchanged from last update. Share price rose 2.5% to JP¥10,730 over the past week. Reported Earnings • May 13
First quarter 2026 earnings released: EPS: JP¥83.68 (vs JP¥25.44 in 1Q 2025) First quarter 2026 results: EPS: JP¥83.68 (up from JP¥25.44 in 1Q 2025). Revenue: JP¥6.13b (up 39% from 1Q 2025). Net income: JP¥1.53b (up 221% from 1Q 2025). Profit margin: 25% (up from 11% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 59% per year, which means it is tracking significantly ahead of earnings growth. Live News • May 13
MEC Lifts Outlook and Dividend on AI and Data Center Demand Boost MEC Company reported strong Q1 FY2026 results, with double-digit growth in both sales and profit supported by broad-based volume gains across core chemical products.
Semiconductor package substrate products tied to generative AI and data center demand were a key driver of performance, alongside favorable currency effects.
Management raised its full-year outlook and increased both interim and year-end dividend forecasts, citing confidence in sustained double-digit sales and earnings growth and solid cash generation.
The key takeaway is that MEC is leaning into demand linked to AI and data centers while also rewarding shareholders through higher expected dividends.
Investors may want to watch how macro factors such as oil prices and U.S. trade policy affect input costs and global demand, given management’s reference to ongoing geopolitical and economic uncertainties. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥10,360, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 315% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥11,323 per share. Buy Or Sell Opportunity • May 05
Now 20% undervalued Over the last 90 days, the stock has risen 55% to JP¥8,920. The fair value is estimated to be JP¥11,181, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 9.1% per annum over the same time period. Declared Dividend • Apr 11
Final dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 29th June 2026 Payment date: 2nd September 2026 Dividend yield will be 1.4%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (31% earnings payout ratio) but not covered by cash flows (145% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥7,750, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 237% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥11,024 per share. New Risk • Apr 08
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.4% average weekly change). High level of non-cash earnings (22% accrual ratio). Announcement • Apr 07
MEC Company Ltd. to Report Q1, 2026 Results on May 12, 2026 MEC Company Ltd. announced that they will report Q1, 2026 results on May 12, 2026 Reported Earnings • Mar 28
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥272 (up from JP¥122 in FY 2024). Revenue: JP¥20.9b (up 15% from FY 2024). Net income: JP¥5.03b (up 120% from FY 2024). Profit margin: 24% (up from 13% in FY 2024). Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 16
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥272 (up from JP¥122 in FY 2024). Revenue: JP¥20.9b (up 15% from FY 2024). Net income: JP¥5.03b (up 120% from FY 2024). Profit margin: 24% (up from 13% in FY 2024). Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 8.7% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 13
MEC Company Ltd., Annual General Meeting, Mar 24, 2026 MEC Company Ltd., Annual General Meeting, Mar 24, 2026. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥6,760, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 199% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 04 March 2026. Payout ratio is a comfortable 31% but the company is paying out more than the cash it is generating. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.5%). Announcement • Dec 04
MEC Company Ltd. to Report Fiscal Year 2025 Results on Feb 13, 2026 MEC Company Ltd. announced that they will report fiscal year 2025 results on Feb 13, 2026 Major Estimate Revision • Nov 28
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥19.8b to JP¥20.3b. EPS estimate increased from JP¥209 to JP¥236 per share. Net income forecast to grow 45% next year vs 9.1% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥4,867 unchanged from last update. Share price rose 7.6% to JP¥5,120 over the past week. New Risk • Nov 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.1% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.1% average weekly change). Minor Risk Dividend is not well covered by cash flows (185% cash payout ratio). Buy Or Sell Opportunity • Nov 17
Now 20% undervalued Over the last 90 days, the stock has risen 65% to JP¥4,990. The fair value is estimated to be JP¥6,240, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 55% in the next 2 years. Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: JP¥78.45 (vs JP¥39.36 in 3Q 2024) Third quarter 2025 results: EPS: JP¥78.45 (up from JP¥39.36 in 3Q 2024). Revenue: JP¥5.60b (up 17% from 3Q 2024). Net income: JP¥1.44b (up 95% from 3Q 2024). Profit margin: 26% (up from 15% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥5,310, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 13x in the Chemicals industry in Japan. Total returns to shareholders of 122% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,232 per share. Price Target Changed • Oct 02
Price target increased by 17% to JP¥4,867 Up from JP¥4,167, the current price target is an average from 3 analysts. New target price is 19% above last closing price of JP¥4,095. Stock is up 11% over the past year. The company is forecast to post earnings per share of JP¥209 for next year compared to JP¥122 last year. Valuation Update With 7 Day Price Move • Sep 24
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥4,045, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Chemicals industry in Japan. Total returns to shareholders of 95% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,064 per share. New Risk • Sep 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (5.0% average weekly change). Profit margins are more than 30% lower than last year (12% net profit margin). Announcement • Sep 04
MEC Company Ltd. to Report Q3, 2025 Results on Nov 11, 2025 MEC Company Ltd. announced that they will report Q3, 2025 results on Nov 11, 2025 Declared Dividend • Sep 03
First half dividend of JP¥30.00 announced Shareholders will receive a dividend of JP¥30.00. Ex-date: 29th December 2025 Payment date: 4th March 2026 Dividend yield will be 1.8%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (41% earnings payout ratio) but not covered by cash flows (131% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 77% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 09
Second quarter 2025 earnings released: EPS: JP¥76.16 (vs JP¥59.33 in 2Q 2024) Second quarter 2025 results: EPS: JP¥76.16 (up from JP¥59.33 in 2Q 2024). Revenue: JP¥4.96b (up 9.6% from 2Q 2024). Net income: JP¥1.42b (up 28% from 2Q 2024). Profit margin: 28% (up from 25% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 03 September 2025. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (4.0%). Lower than average of industry peers (2.9%). Announcement • Jun 03
MEC Company Ltd. to Report Q2, 2025 Results on Aug 08, 2025 MEC Company Ltd. announced that they will report Q2, 2025 results on Aug 08, 2025 Reported Earnings • May 13
First quarter 2025 earnings released: EPS: JP¥25.42 (vs JP¥41.60 in 1Q 2024) First quarter 2025 results: EPS: JP¥25.42 (down from JP¥41.60 in 1Q 2024). Revenue: JP¥4.42b (up 1.6% from 1Q 2024). Net income: JP¥476.0m (down 39% from 1Q 2024). Profit margin: 11% (down from 18% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 1% per year. Announcement • May 12
MEC Company Ltd. Provides Consolidated Earnings Guidance for the First Half and Full Year of Fiscal Year Ending December 31, 2025 Mec Company Ltd. provided Consolidated Earnings Guidance for the First Half and Full Year of fiscal year Ending December 31, 2025. For the first half, the company expects net sales of JPY 9,600 million, Operating income of JPY 2,250 million, Net income attributable to parent company's shareholders JPY 1,450 million and net income per share of JPY 77.44 million.
For the Full year, the company expects net sales of JPY 20,000 million, Operating income of JPY 5,000 million, Net income attributable to parent company's shareholders JPY 3,600 million and net income per share of JPY 192.26 million. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥2,375, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 3.9% over the past three years. Board Change • Apr 23
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Eiji Miyashita was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 23
MEC Company Ltd. Resolves Transfer of its Operating Officer Katsuaki Kitauji (Currently Operating Officer, General Manager, Accounting & Finance Unit.) Effective May 1, 2025 MEC COMPANY LTD. notified that at a meeting of the Board of Directors held April 22, 2025, it has resolved to make the following transfers regarding its Operating Officers. Katsuaki KITAUJI (currently Operating Officer, General Manager, Accounting & Finance Unit.) effective May 1, 2025. Declared Dividend • Apr 11
Final dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 27th June 2025 Payment date: 3rd September 2025 Dividend yield will be 2.4%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (37% earnings payout ratio) and cash flows (30% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 72% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,048, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Chemicals industry in Japan. Total loss to shareholders of 27% over the past three years. Reported Earnings • Mar 28
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥122. Revenue: JP¥18.2b (up 30% from FY 2023). Net income: JP¥2.29b (flat on FY 2023). Profit margin: 13% (down from 16% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 36%. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Announcement • Mar 07
MEC Company Ltd. to Report Q1, 2025 Results on May 12, 2025 MEC Company Ltd. announced that they will report Q1, 2025 results on May 12, 2025 Announcement • Feb 21
MEC Company Ltd. Declares Dividend for Fiscal Year Ended December 31, 2024, Payable on March 4, 2025 MEC Company Ltd. declared dividend of JPY 25.00 per share for fiscal year ended December 31, 2024, payable on March 4, 2025. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥2,615, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 11x in the Chemicals industry in Japan. Total loss to shareholders of 10% over the past three years. Reported Earnings • Feb 16
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥122. Revenue: JP¥18.2b (up 30% from FY 2023). Net income: JP¥2.29b (flat on FY 2023). Profit margin: 13% (down from 16% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 36%. Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Announcement • Jan 03
MEC Company Ltd. to Report Fiscal Year 2024 Results on Feb 14, 2025 MEC Company Ltd. announced that they will report fiscal year 2024 results on Feb 14, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 February 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.6%). Reported Earnings • Nov 13
Third quarter 2024 earnings released: EPS: JP¥39.36 (vs JP¥33.66 in 3Q 2023) Third quarter 2024 results: EPS: JP¥39.36 (up from JP¥33.66 in 3Q 2023). Revenue: JP¥4.80b (up 27% from 3Q 2023). Net income: JP¥737.0m (up 17% from 3Q 2023). Profit margin: 15% (down from 17% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 5% per year. Announcement • Aug 27
MEC Company Ltd. to Report Q3, 2024 Results on Nov 11, 2024 MEC Company Ltd. announced that they will report Q3, 2024 results on Nov 11, 2024 Price Target Changed • Aug 21
Price target increased by 13% to JP¥4,400 Up from JP¥3,900, the current price target is an average from 3 analysts. New target price is 10% above last closing price of JP¥4,000. Stock is up 7.2% over the past year. The company is forecast to post earnings per share of JP¥198 for next year compared to JP¥122 last year. Reported Earnings • Aug 12
Second quarter 2024 earnings released: EPS: JP¥50.48 (vs JP¥52.61 in 2Q 2023) Second quarter 2024 results: EPS: JP¥50.48 (down from JP¥52.61 in 2Q 2023). Revenue: JP¥4.44b (up 29% from 2Q 2023). Net income: JP¥945.3m (down 4.9% from 2Q 2023). Profit margin: 21% (down from 29% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. Major Estimate Revision • Aug 10
Consensus EPS estimates increase by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥17.3b to JP¥18.5b. EPS estimate increased from JP¥157 to JP¥192 per share. Net income forecast to grow 20% next year vs 8.6% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥4,033 to JP¥3,900. Share price rose 6.6% to JP¥3,690 over the past week. Declared Dividend • Aug 10
Dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 27th December 2024 Payment date: 28th February 2025 Dividend yield will be 1.2%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (28% earnings payout ratio) but not covered by cash flows (dividend approximately 14x free cash flows). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 36% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.1% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥3,005, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 8.5% over the past three years. Buy Or Sell Opportunity • Jul 18
Now 22% undervalued Over the last 90 days, the stock has risen 12% to JP¥4,165. The fair value is estimated to be JP¥5,332, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.6% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 05 September 2024. Payout ratio is a comfortable 28% but the company is paying out more than the cash it is generating. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.3%). Announcement • Jun 06
MEC Company Ltd. to Report Q2, 2024 Results on Aug 08, 2024 MEC Company Ltd. announced that they will report Q2, 2024 results on Aug 08, 2024 Valuation Update With 7 Day Price Move • May 17
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥4,640, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 13x in the Chemicals industry in Japan. Total returns to shareholders of 76% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,702 per share. New Risk • May 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • May 12
First quarter 2024 earnings released: EPS: JP¥41.60 (vs JP¥4.31 in 1Q 2023) First quarter 2024 results: EPS: JP¥41.60 (up from JP¥4.31 in 1Q 2023). Revenue: JP¥4.35b (up 57% from 1Q 2023). Net income: JP¥779.0m (up JP¥697.0m from 1Q 2023). Profit margin: 18% (up from 3.0% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • May 02
Price target decreased by 7.8% to JP¥3,933 Down from JP¥4,267, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥3,930. Stock is up 51% over the past year. The company is forecast to post earnings per share of JP¥131 for next year compared to JP¥122 last year. Declared Dividend • Apr 11
Final dividend of JP¥20.00 announced Dividend of JP¥20.00 is the same as last year. Ex-date: 27th June 2024 Payment date: 5th September 2024 Dividend yield will be 1.2%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (37% earnings payout ratio) but not covered by cash flows (dividend approximately 14x free cash flows). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 66% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Apr 11
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to JP¥3,745. The fair value is estimated to be JP¥4,716, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% over the last 3 years. Earnings per share has grown by 5.5%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 18% per annum over the same time period. Announcement • Mar 28
MEC Company Ltd. to Report Q1, 2024 Results on May 10, 2024 MEC Company Ltd. announced that they will report Q1, 2024 results on May 10, 2024 Reported Earnings • Mar 27
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥122 (down from JP¥161 in FY 2022). Revenue: JP¥14.0b (down 14% from FY 2022). Net income: JP¥2.30b (down 25% from FY 2022). Profit margin: 16% (down from 19% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.4%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 17
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥122 (down from JP¥161 in FY 2022). Revenue: JP¥14.0b (down 14% from FY 2022). Net income: JP¥2.30b (down 25% from FY 2022). Profit margin: 16% (down from 19% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.4%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥25.00 per share at 1.1% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 04 March 2024. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (2.4%). Announcement • Dec 06
MEC Company Ltd. to Report Fiscal Year 2023 Results on Feb 14, 2024 MEC Company Ltd. announced that they will report fiscal year 2023 results on Feb 14, 2024 Price Target Changed • Nov 20
Price target increased by 8.9% to JP¥4,300 Up from JP¥3,950, the current price target is an average from 3 analysts. New target price is 6.2% above last closing price of JP¥4,050. Stock is up 64% over the past year. The company is forecast to post earnings per share of JP¥107 for next year compared to JP¥161 last year.