Material Group, Inc. (156A) AI Stock Analysis

• Market Cap: ¥7.57B
• Dividend Yield: 3.33%
• Average Volume (3M): 69.62K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.51
• Revenue Growth: 19.06%
• EPS Growth: -33.36%
• Country: JP
• Employees: 282
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 5.98
• Shares Outstanding: 9,877,197
• 10 Day Avg. Volume: 60,440
• 30 Day Avg. Volume: 69,620
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 18,266.69
• Revenue Forecast (FY): ¥1.25T

• Rating: 72 Outperform
• Price Target: ¥799.00 ▲(7.68% Upside)

Material Group, Inc. demonstrates strong financial performance with effective cost management and improved financial stability. The technical indicators suggest potential short-term stability, while the valuation metrics indicate the stock is fairly valued with an attractive dividend yield. However, attention should be paid to the declining net profit margin and operating cash flow coverage ratio.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Balance Sheet Health

Reduced leverage enhances financial stability, providing the company with greater flexibility to invest in growth opportunities.

Cash Generation

Strong free cash flow indicates effective capital management, enabling reinvestment in innovation and expansion without over-reliance on external financing.

Negative Factors

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or inefficiencies, potentially impacting long-term profitability if not addressed.

Operating Cash Flow Decline

Decreasing operating cash flow can constrain liquidity, limiting the company's ability to fund operations and growth initiatives.

EPS Growth Decline

A significant decline in EPS growth may reflect underlying operational challenges, affecting investor confidence and future earnings potential.

Material Group, Inc. Business Overview & Revenue Model

Company Description

Material Group, Inc. (156A) is a leading provider of innovative materials and solutions primarily serving the construction, manufacturing, and industrial sectors. The company specializes in the development and distribution of high-performance materials, including advanced composites, polymers, and coatings, which are designed to enhance durability and efficiency in various applications. With a strong commitment to sustainability, Material Group, Inc. also focuses on eco-friendly products that meet the evolving needs of its customers while adhering to environmental standards.

How the Company Makes Money

Material Group, Inc. generates revenue through multiple key streams, including the sale of its proprietary materials and products to businesses in the construction and industrial sectors. The company employs a direct sales model, supported by a network of distributors and partners, to reach a broad customer base. Additionally, Material Group, Inc. engages in long-term contracts with major construction firms and manufacturers, providing a steady revenue stream. Strategic partnerships with research institutions and technology companies also enhance its product offerings, enabling the company to pursue innovative solutions that attract new customers and drive sales. Moreover, the firm invests in research and development to continuously improve its existing products and create new, high-demand materials, contributing to its overall profitability.

Material Group, Inc. Financial Statement Overview

Summary

Material Group, Inc. exhibits strong financial health with robust revenue growth, efficient cost management, and strong profitability margins. The balance sheet is solid with low leverage and high return on equity. Cash flow management is impressive, with significant free cash flow growth and strong cash conversion ratios.

Income Statement

Material Group, Inc. demonstrates strong revenue growth with a 13.4% increase from the previous year. The gross profit margin is robust at 60.5%, indicating efficient cost management. The net profit margin improved to 13.4%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 15.3% and 17.3% respectively, showcasing strong operational performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.14, indicating low leverage. The return on equity is impressive at 35.0%, suggesting effective use of equity capital. The equity ratio stands at 62.1%, reflecting a strong equity base. Overall, the balance sheet is stable with a healthy financial position.

Cash Flow

Material Group, Inc. shows strong cash flow management with a significant free cash flow growth rate of 99.3%. The operating cash flow to net income ratio is 1.39, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 1.36, highlighting strong cash conversion capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	5.95B	6.29B	5.28B	4.66B	4.18B
Gross Profit	3.64B	3.85B	3.19B	2.84B	2.51B
EBITDA	870.76M	877.53M	915.42M	703.47M	498.72M
Net Income	690.11M	468.95M	709.63M	437.86M	208.28M
Balance Sheet
Total Assets	3.28B	3.90B	3.26B	2.64B	2.81B
Cash, Cash Equivalents and Short-Term Investments	917.00M	1.26B	1.12B	614.87M	851.11M
Total Debt	85.00M	228.01M	274.18M	374.86M	913.81M
Total Liabilities	1.22B	1.68B	1.23B	1.21B	1.82B
Stockholders Equity	2.06B	2.16B	2.03B	1.43B	993.40M
Cash Flow
Free Cash Flow	0.00	649.27M	967.55M	485.50M	295.07M
Operating Cash Flow	0.00	694.25M	987.20M	535.99M	347.02M
Investing Cash Flow	0.00	-58.33M	-176.88M	-211.16M	-53.15M
Financing Cash Flow	0.00	-497.27M	-302.58M	-561.06M	-88.97M

Material Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 742.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:156A, the sentiment is Positive. The current price of 742 is above the 20-day moving average (MA) of 737.85, above the 50-day MA of 713.40, and above the 200-day MA of 729.73, indicating a bullish trend. The MACD of 18.44 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 86.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:156A.

Material Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
156A	72 Outperform	¥7.57B	16.39	―	3.33%	19.06%	-33.36%
7357	62 Neutral	¥3.71B	366.17	―	2.36%	5.91%	-64.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥2.95B	7.72	―	―	-4.44%	―
9254	58 Neutral	¥1.85B	10.76	―	―	21.68%	110.72%
9258	46 Neutral	¥2.33B	-22.75	―	―	16.63%	-999.78%
7078	42 Neutral	¥3.36B	-2.59	―	―	-8.67%	-407.35%