MBK Co., Ltd. (3121) AI Stock Analysis

• Market Cap: ¥8.62B
• Dividend Yield: 0.74%
• Average Volume (3M): 142.71K
• Price to Earnings (P/E): 47.5
• Beta (1Y): 0.30
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 3
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 31,806,190
• 10 Day Avg. Volume: 179,870
• 30 Day Avg. Volume: 142,706
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥329.00
• Price Target Upside: 20.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥329.00 ▲(20.96% 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.

Positive Factors

Revenue Growth

The 14.35% revenue growth indicates strong demand and effective market strategies, supporting long-term business expansion and competitiveness.

Profitability

Healthy gross and improving net profit margins suggest efficient cost management and pricing power, enhancing long-term profitability.

Operating Cash Flow

Improved operating cash flow indicates better cash generation from core operations, enhancing financial stability and investment capacity.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest and grow sustainably.

Negative Free Cash Flow

Negative free cash flow suggests challenges in covering capital expenditures from earnings, which may constrain future growth and liquidity.

Liquidity Challenges

Liquidity challenges due to negative free cash flow can hinder the company's ability to meet short-term obligations and fund operations.

MBK Co., Ltd. Business Overview & Revenue Model

Company Description

MBK 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 Money

MBK 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 exhibits strong revenue growth and stable profitability, but high leverage and negative free cash flow indicate financial risk. Improved operating cash flow contrasts with negative free cash flow, highlighting liquidity challenges.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.66B	4.45B	3.89B	4.35B	2.72B	1.64B
Gross Profit	928.22M	984.48M	939.67M	999.40M	915.58M	847.86M
EBITDA	709.60M	701.38M	559.19M	257.79M	517.53M	419.20M
Net Income	285.27M	182.41M	168.91M	-66.11M	70.73M	-44.09M
Balance Sheet
Total Assets	16.32B	16.38B	13.96B	10.18B	10.85B	10.52B
Cash, Cash Equivalents and Short-Term Investments	764.79M	1.30B	1.29B	601.65M	1.06B	523.00M
Total Debt	12.12B	11.84B	9.69B	5.89B	6.49B	6.81B
Total Liabilities	12.35B	12.20B	9.94B	6.25B	6.72B	7.04B
Stockholders Equity	3.96B	4.18B	4.03B	3.93B	4.13B	3.46B
Cash Flow
Free Cash Flow	0.00	-2.32B	-8.65B	935.53M	604.96M	518.58M
Operating Cash Flow	0.00	3.14B	-413.14M	2.90B	981.02M	555.51M
Investing Cash Flow	0.00	-4.97B	-3.79B	-2.12B	-733.11M	-36.30M
Financing Cash Flow	0.00	2.13B	3.80B	-688.78M	280.34M	-268.70M

MBK Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 272.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 272 is below the 20-day moving average (MA) of 287.50, below the 50-day MA of 310.56, and below the 200-day MA of 304.48, indicating a bearish trend. The MACD of -8.94 indicates Positive momentum. The RSI at 30.27 is Neutral, neither overbought nor oversold. The STOCH value of 17.17 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7347	68 Neutral	¥16.29B	236.47		2.62%	11.20%	-93.41%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
3454	61 Neutral	¥15.85B	10.84		5.92%	22.01%	26.92%
7345	55 Neutral	¥1.97B	1,103.57		0.67%	-2.04%	-168.42%
3121	54 Neutral	¥8.62B	47.49		0.74%	―	―
3113	44 Neutral	¥6.29B	―		―	-41.81%	―
3266	―	¥3.73B	23.33		1.01%	―	―