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Meiji Holdings (TSE:2269) Could Be 4% Undervalued After First Quarter Earnings

Simply Wall St · 2d ago

Meiji Holdings (TSE:2269) has drawn fresh attention after reporting first quarter 2026 earnings, with sales of ¥289,401 million and net income of ¥15,271 million for the period ended June 30.

See our latest analysis for Meiji Holdings.

The solid first quarter result has come alongside firm price momentum for Meiji Holdings, with a 7 day share price return of 8.47% and a year to date share price return of 16.46%. The 1 year total shareholder return of 38.61% points to gains that go beyond short term trading moves.

If these earnings have you looking wider across the market, this could be a good moment to see what else is performing well through our screener of 10 top founder-led companies

After a strong first quarter and a 1 year total shareholder return of 38.61%, the key question for Meiji Holdings now is whether the current valuation still leaves a favourable balance between risk and potential reward.

Most Popular Narrative: 3.9% Undervalued

Against the last close of ¥4,110, the most followed narrative for Meiji Holdings points to a fair value of ¥4,277.78, which implies a small valuation gap that investors are actively debating.

Price increases in the Food segment, particularly for B2C chocolates and efforts to enhance product and brand strategies, could help offset raw material cost increases and improve revenue and net margins. Expansion of the B2B business in Japan by leveraging proprietary technologies to drive commercial product sales, could lead to higher revenue growth and improved profitability.

Read the complete narrative.

Curious what sits behind that fair value for Meiji Holdings. The narrative leans heavily on a specific path for revenue, margins and future earnings multiples. The exact mix might surprise you.

Result: Fair Value of ¥4,277.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Meiji Holdings still faces pressure from higher raw material and logistics costs, as well as softer overseas performance, which could both weigh on margins and challenge this narrative.

Find out about the key risks to this Meiji Holdings narrative.

Another View on Meiji Holdings Using Market Multiples

The SWS DCF model suggests Meiji Holdings is undervalued, yet the market based view looks very different. At ¥4,110, the stock trades on a P/E of 27.7x, compared with a peer average of 18.7x and a fair ratio of 25.1x. That signals a richer price tag and raises the question of how much optimism is already in the share price.

For a closer look at how these P/E gaps stack up against peers and the fair ratio, take a moment to review the See what the numbers say about this price — find out in our valuation breakdown.

TSE:2269 P/E Ratio as at Aug 2026
TSE:2269 P/E Ratio as at Aug 2026

Next Steps

With mixed signals on valuation and earnings quality around Meiji Holdings, it makes sense to move quickly and review the underlying data for yourself. To see both the upside case and the issues investors are watching, take a closer look at the 2 key rewards and 2 important warning signs

Looking for more investment ideas beyond Meiji Holdings?

If Meiji Holdings has sharpened your focus, now is the time to broaden your watchlist with stocks that match different goals and risk levels.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.