ScoreWhy is Mercari, Inc. ?
1
The company is Net-Debt Free
2
Healthy long term growth as Net Sales has grown by an annual rate of 17.48% and Operating profit at 61.80%
3
Positive results in Mar 26
- NET PROFIT(HY) At JPY 14,443 MM has Grown at 64.18%
- ROCE(HY) Highest at 33.01%
- INTEREST COVERAGE RATIO(Q) Highest at 6,048.02
4
With ROE of 26.47%, it has a fair valuation with a 5.30 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 81.52%, its profits have risen by 79.8% ; the PEG ratio of the company is 0.3
5
Market Beating Performance
- The stock has generated a return of 81.52% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 71.25%
Real-Time Research ReportHow much should you buy?
- 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Mercari, Inc.
81.52%
2.15
45.88%
Japan Nikkei 225
75.34%
2.75
25.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.48%
EBIT Growth (5y)
61.80%
EBIT to Interest (avg)
25.74
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
0.72
Tax Ratio
37.90%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
21.28%
ROE (avg)
12.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
5.30
EV to EBIT
17.91
EV to EBITDA
16.89
EV to Capital Employed
3.65
EV to Sales
3.20
PEG Ratio
0.25
Dividend Yield
NA
ROCE (Latest)
20.38%
ROE (Latest)
26.47%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
NET PROFIT(HY)
At JPY 14,443 MM has Grown at 64.18%
ROCE(HY)
Highest at 33.01%
INTEREST COVERAGE RATIO(Q)
Highest at 6,048.02
RAW MATERIAL COST(Y)
Fallen by -1.82% (YoY
NET SALES(Q)
Highest at JPY 61,036 MM
OPERATING PROFIT(Q)
Highest at JPY 15,241 MM
OPERATING PROFIT MARGIN(Q)
Highest at 24.97 %
PRE-TAX PROFIT(Q)
Highest at JPY 14,869 MM
-13What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.75 times
CASH AND EQV(HY)
Lowest at JPY 314,280 MM
DEBT-EQUITY RATIO
(HY)
Highest at 81.71 %
INTEREST(Q)
Highest at JPY 252 MM
Here's what is working for Mercari, Inc.
Interest Coverage Ratio
Highest at 6,048.02
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At JPY 14,443 MM has Grown at 64.18%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 61,036 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 61,036 MM has Grown at 19.25%
over average net sales of the previous four periods of JPY 51,181.75 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 15,241 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 24.97 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 14,869 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 14,869 MM has Grown at 64.53%
over average net sales of the previous four periods of JPY 9,037 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Raw Material Cost
Fallen by -1.82% (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 Mercari, Inc.
Debtors Turnover Ratio
Lowest at 0.75 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 252 MM
in the last five periods and Increased by 5.44% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 314,280 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 81.71 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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