ScoreWhy is Mercari, Inc. ?
1
Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at JPY -9,512 MM
- NET SALES(Q) Highest at JPY 62,002 MM
- RAW MATERIAL COST(Y) Fallen by -1.79% (YoY)
2
With ROE of 28.19%, it has a very attractive valuation with a 5.18 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 60.34%, its profits have risen by 105.8% ; the PEG ratio of the company is 0.2
3
Market Beating Performance
- The stock has generated a return of 60.34% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 43.52%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Mercari, Inc. should be less than 10%
- Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Mercari, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Mercari, Inc.
60.34%
1.42
52.15%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.68%
EBIT Growth (5y)
75.99%
EBIT to Interest (avg)
32.95
Debt to EBITDA (avg)
0.41
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
0.70
Tax Ratio
19.58%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.96%
ROE (avg)
12.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
5.18
EV to EBIT
16.83
EV to EBITDA
15.93
EV to Capital Employed
3.37
EV to Sales
3.31
PEG Ratio
0.18
Dividend Yield
NA
ROCE (Latest)
20.01%
ROE (Latest)
28.19%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY -9,512 MM
NET SALES(Q)
Highest at JPY 62,002 MM
RAW MATERIAL COST(Y)
Fallen by -1.79% (YoY
NET PROFIT(Q)
Highest at JPY 15,971 MM
EPS(Q)
Highest at JPY 94.24
-11What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.74 times
INTEREST(Q)
Highest at JPY 276 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 16.66 %
Here's what is working for Mercari, Inc.
Operating Cash Flow
Highest at JPY -9,512 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 62,002 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
At JPY 62,002 MM has Grown at 14.89%
over average net sales of the previous four periods of JPY 53,964.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
Highest at JPY 15,971 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 15,971 MM has Grown at 88.93%
over average net sales of the previous four periods of JPY 8,453.25 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 94.24
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -1.79% (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
Depreciation
Highest at JPY 1,021 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 1,021 MM has Grown at 70.45%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for Mercari, Inc.
Debtors Turnover Ratio
Lowest at 0.74 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at JPY 276 MM
in the last five periods and Increased by 9.52% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 16.66 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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