Mercari, Inc. (4385) 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

Aucnet, Inc.

USS Co., Ltd.

Valuence Holdings, Inc.

ZOZO, Inc.

Mercari, Inc.

Kitanotatsujin Corp.

Rakuten Group, Inc.

Kakuyasu Group Co., Ltd.

Belluna Co., Ltd.

ASKUL Corp.

Oisix ra daichi, Inc.

Why is Mercari, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 23.02% and Operating profit at 24.24%

Flat results in Jun 25

DEBTORS TURNOVER RATIO(HY) Lowest at 0.86%
INTEREST COVERAGE RATIO(Q) Lowest at 3,381.67
DEBT-EQUITY RATIO (HY) Highest at 52.73 %

With ROE of 19.43%, it has a expensive valuation with a 4.83 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 53.81%, its profits have fallen by -5.6%

Market Beating Performance

The stock has generated a return of 53.81% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How 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, Medium Return

Absolute

Risk Adjusted

Volatility

Mercari, Inc.

56.25%

0.76

50.03%

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)

23.02%

EBIT Growth (5y)

24.24%

EBIT to Interest (avg)

25.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.76

Tax Ratio

37.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

21.28%

ROE (avg)

12.74%

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

4.83

EV to EBIT

15.86

EV to EBITDA

14.84

EV to Capital Employed

5.13

EV to Sales

2.12

PEG Ratio

Dividend Yield

ROCE (Latest)

32.35%

ROE (Latest)

19.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY -11,949 MM

RAW MATERIAL COST(Y)

Fallen by -5.23% (YoY

NET PROFIT(Q)

Highest at JPY 14,383 MM

EPS(Q)

Highest at JPY 85.32

-16What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,381.67

DEBT-EQUITY RATIO (HY)

Highest at 52.73 %

INTEREST(Q)

Highest at JPY 240 MM

Here's what is working for Mercari, Inc.

Net Profit

At JPY 14,383 MM has Grown at 249.97%

over average net sales of the previous four periods of JPY 4,109.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY -11,949 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Profit

Highest at JPY 14,383 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 85.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -5.23% (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 528 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Mercari, Inc.

Interest

At JPY 240 MM has Grown at 17.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,381.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 0.86% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at JPY 240 MM

in the last five periods and Increased by 17.65% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 52.73 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio