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MBK Co., Ltd. (JP:3121)
:3121
Japanese Market
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MBK Co., Ltd. (3121) AI Stock Analysis

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JP:3121

MBK Co., Ltd.

(3121)

Rating:54Neutral
Price Target:
¥329.00
▲(11.15%Upside)
The overall stock score reflects the company's strong revenue growth and profitability, which are offset by significant leverage and liquidity challenges. Technical analysis indicates bearish sentiment, while valuation suggests potential overvaluation and low income appeal.

MBK Co., Ltd. (3121) vs. iShares MSCI Japan ETF (EWJ)

MBK Co., Ltd. Business Overview & Revenue Model

Company DescriptionMBK Co., Ltd. (3121) is a versatile conglomerate involved in various sectors, including retail, finance, and real estate. The company operates a range of businesses, such as shopping centers, finance services, and hospitality, providing diverse products and services to meet consumer and corporate needs.
How the Company Makes MoneyMBK Co., Ltd. generates revenue through multiple channels. The retail segment, including shopping centers and department stores, contributes significantly to its income by leasing retail space and offering consumer goods. The finance division provides financial services, including leasing and installment credit, earning interest and fee income. Additionally, the company's real estate operations, involving property development and management, generate revenue through sales and rental income. Strategic partnerships with other firms and brands further enhance its market reach and profitability.

MBK Co., Ltd. Financial Statement Overview

Summary
The company shows strong revenue growth and stable profitability. However, high leverage and negative free cash flow present financial risks. Improvement in EBIT and EBITDA margins is necessary along with better debt management and cash flow conversion.
Income Statement
80
Positive
The company has shown a strong revenue growth, with a 14.35% increase from the prior year. Gross profit margin remains healthy at approximately 22.14%, and the net profit margin is slightly improved at 4.10%. However, there is room for improvement in EBIT and EBITDA margins, which stand at 7.34% and 15.78% respectively.
Balance Sheet
65
Positive
The balance sheet indicates a high debt-to-equity ratio of 2.83, which suggests significant leverage. Return on equity is 4.37%, indicating moderate profitability. The equity ratio is 25.52%, showing a moderate level of financial stability but highlighting potential risks associated with high leverage.
Cash Flow
55
Neutral
Operating cash flow has significantly improved to 3,137,436,000 from negative last year, but free cash flow remains negative at -2,322,413,000, indicating high capital expenditures. The free cash flow to net income ratio is negative, suggesting challenges in translating earnings to free cash flow.
BreakdownDec 2024Dec 2023Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue4.45B3.89B4.35B2.72B1.64B
Gross Profit984.48M939.67M999.40M915.58M847.86M
EBITDA701.38M559.19M257.79M517.53M419.20M
Net Income182.41M168.91M-66.11M70.73M-44.09M
Balance Sheet
Total Assets16.38B13.96B10.18B10.85B10.52B
Cash, Cash Equivalents and Short-Term Investments1.30B1.29B1.58B1.06B826.89M
Total Debt11.84B9.69B5.89B6.49B6.81B
Total Liabilities12.20B9.94B6.25B6.72B7.04B
Stockholders Equity4.18B4.03B3.93B4.13B3.46B
Cash Flow
Free Cash Flow-2.32B-8.65B935.53M604.96M518.58M
Operating Cash Flow3.14B-413.14M2.90B981.02M555.51M
Investing Cash Flow-4.97B-6.55B-2.12B-733.11M-36.30M
Financing Cash Flow2.13B6.51B-688.78M280.34M-268.70M

MBK Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price296.00
Price Trends
50DMA
335.04
Negative
100DMA
318.64
Negative
200DMA
309.26
Negative
Market Momentum
MACD
-8.52
Positive
RSI
30.55
Neutral
STOCH
21.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3121, the sentiment is Negative. The current price of 296 is below the 20-day moving average (MA) of 336.30, below the 50-day MA of 335.04, and below the 200-day MA of 309.26, indicating a bearish trend. The MACD of -8.52 indicates Positive momentum. The RSI at 30.55 is Neutral, neither overbought nor oversold. The STOCH value of 21.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3121.

MBK Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥15.65B31.99
2.74%-4.73%-51.89%
67
Neutral
$17.78B11.609.11%3.88%10.92%-3.96%
61
Neutral
¥14.86B10.17
6.26%22.01%26.92%
55
Neutral
¥1.97B1,103.57
0.66%1.72%-234.18%
54
Neutral
¥9.50B52.38
0.66%
51
Neutral
¥6.45B
-42.77%48.15%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3121
MBK Co., Ltd.
296.00
-8.31
-2.73%
JP:3113
UNIVA Oak Holdings Limited
80.00
-11.00
-12.09%
JP:3454
First Brothers Co., Ltd.
1,060.00
-85.86
-7.49%
JP:7345
Ai Partners Financial Inc.
602.00
166.94
38.37%
JP:7347
Mercuria Holdings Co., Ltd.
805.00
-13.10
-1.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025