Mars Group Holdings Corp. (6419) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nintendo Co., Ltd.

GLOBERIDE, Inc.

Yamaha Corp.

Tomy Co., Ltd.

Roland Corp.

Bandai Namco Holdings, Inc.

Mars Group Holdings Corp.

Yonex Co., Ltd.

Alpen Co., Ltd.

Snow Peak, Inc. (Japan)

Fujishoji Co., Ltd.

Why is Mars Group Holdings Corp. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Operating profit has grown by an annual rate 26.55%
Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 15.88% signifying high profitability per unit of total capital (equity and debt)

The company has declared negative results in Mar'2025 after 9 consecutive positive quarters

NET SALES(Q) At JPY 8,678.24 MM has Fallen at -17.84%
NET PROFIT(HY) At JPY 3,484.76 MM has Grown at -37.31%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.93%

With ROE of 11.98%, it has a very attractive valuation with a 0.85 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.08%, its profits have risen by 9% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -5.08% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mars Group Holdings Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mars Group Holdings Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mars Group Holdings Corp.

-3.63%

-0.87

21.40%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.37%

EBIT Growth (5y)

26.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.50

Tax Ratio

30.79%

Dividend Payout Ratio

40.99%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

15.88%

ROE (avg)

7.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.85

EV to EBIT

2.45

EV to EBITDA

2.31

EV to Capital Employed

0.72

EV to Sales

0.71

PEG Ratio

0.79

Dividend Yield

ROCE (Latest)

29.58%

ROE (Latest)

11.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 10,479.68 MM

RAW MATERIAL COST(Y)

Fallen by -2.1% (YoY

CASH AND EQV(HY)

Highest at JPY 72,543.45 MM

DEBT-EQUITY RATIO (HY)

Lowest at -44.57 %

-17What is not working for the Company

NET SALES(Q)

At JPY 8,678.24 MM has Fallen at -17.84%

NET PROFIT(HY)

At JPY 3,484.76 MM has Grown at -37.31%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.93%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.96%

Here's what is working for Mars Group Holdings Corp.

Operating Cash Flow

Highest at JPY 10,479.68 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 72,543.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -44.57 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.1% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Mars Group Holdings Corp.

Net Sales

At JPY 8,678.24 MM has Fallen at -17.84%

over average net sales of the previous four periods of JPY 10,562.69 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Profit

At JPY 3,484.76 MM has Grown at -37.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 1.93%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.96%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio