MarketEnterprise Co.Ltd (3135) AI Stock Analysis

• Market Cap: ¥5.39B
• Dividend Yield: N/A
• Average Volume (3M): 25.36K
• Price to Earnings (P/E): 46.5
• Beta (1Y): 1.01
• Revenue Growth: 25.60%
• EPS Growth: N/A
• Country: JP
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 5,354,900
• 10 Day Avg. Volume: 28,330
• 30 Day Avg. Volume: 25,356
• PEG Ratio: -0.08
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 19.28
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥1,039.00 ▼(-32.09% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is supported primarily by improving fundamentals (revenue growth, better operating margins, and a rebound in operating/free cash flow). It is held back by very weak technicals (price far below key moving averages, negative MACD, and extremely low RSI) and an expensive valuation (high P/E), with added caution from increased leverage.

Positive Factors

Consistent revenue growth

Sustained top-line growth indicates durable demand and expanding market reach in the specialty retail segment. Steady revenue increases help amortize fixed costs, support scale advantages, and provide a foundation for reinvestment and margin improvement over the next several quarters.

Improving operating margins

Rising EBIT/EBITDA margins reflect better cost control and operational efficiency, enhancing sustainable profitability. Improved margins create resilience to revenue cyclicality, enable higher cash conversion, and support long-term returns even if top-line growth moderates.

Recovery in operating and free cash flow

A meaningful rebound in operating and free cash flow strengthens liquidity and internal funding capacity. Durable cash generation reduces reliance on external financing, enables debt paydown or capex, and supports strategic flexibility over a multi-quarter horizon.

Negative Factors

Rising leverage (higher debt-to-equity)

Higher leverage increases financial risk and interest burden, reducing resilience to shocks and limiting capacity for opportunistic investment. If cash flow weakens, elevated debt levels could force cutbacks or refinancing at unfavorable terms over the medium term.

Negative EPS growth / earnings volatility

A sharp decline in EPS signals earnings volatility which can undermine reinvestment capacity and investor confidence. Persistent EPS weakness constrains retained earnings and heightens sensitivity to margin or revenue swings in the coming quarters.

Fluctuating net profit margins

Historic net margin variability suggests the business is exposed to cost, pricing, or mix pressures common in specialty retail. Such volatility makes long-term profit forecasting harder and could pressure cash flow if adverse conditions recur.

MarketEnterprise Co.Ltd Business Overview & Revenue Model

Company Description

MarketEnterprise Co.,Ltd operates an online shop for reusable goods in Japan. It operates approximately 40 sites on Web and mobile platforms. The company also sells items on Yahoo! Auctions. In addition, it purchases and sells used agricultural equipment. MarketEnterprise Co.,Ltd was founded in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MarketEnterprise generates revenue primarily through its suite of digital marketing services and solutions. The company earns money by charging clients for service contracts that include campaign management, data analytics, and customer relationship management software subscriptions. Additionally, MarketEnterprise may implement performance-based pricing models, allowing it to earn bonuses based on the success of marketing campaigns. Key revenue streams also include consulting services, where the company provides expertise to help businesses refine their marketing strategies. Strategic partnerships with technology providers and other firms in the marketing ecosystem further enhance its offerings, enabling MarketEnterprise to tap into new markets and increase its customer base, ultimately contributing to its earnings.

MarketEnterprise Co.Ltd Financial Statement Overview

Summary

Solid operating progress driven by consistent revenue growth and improving EBIT/EBITDA margins, supported by a meaningful recovery in operating and free cash flow. The main risk is a higher debt-to-equity ratio (increased leverage), which tempers the overall strength despite improved return on equity.

Income Statement

MarketEnterprise Co.Ltd has shown consistent revenue growth over the years, with a notable increase of 5.36% in the latest period. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin has fluctuated, with recent improvements turning positive, reflecting better profitability. The EBIT and EBITDA margins have also improved, suggesting enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed carefully. However, the return on equity has improved significantly, showcasing better utilization of shareholder funds. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

The cash flow statements reveal a strong recovery in operating cash flow, turning positive after previous negative figures. The free cash flow has also shown significant growth, indicating improved cash generation capabilities. The ratios of operating and free cash flow to net income suggest efficient cash management.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	24.77B	19.01B	15.26B	11.99B	10.88B
Gross Profit	8.50B	6.94B	5.82B	4.27B	3.88B
EBITDA	802.66M	-20.97M	772.15M	-203.70M	164.17M
Net Income	484.71M	-476.30M	290.40M	-404.19M	-40.12M
Balance Sheet
Total Assets	6.24B	5.35B	4.85B	3.53B	3.46B
Cash, Cash Equivalents and Short-Term Investments	1.71B	1.49B	1.64B	941.70M	1.47B
Total Debt	2.17B	2.32B	1.75B	1.22B	1.08B
Total Liabilities	4.32B	4.04B	3.15B	2.24B	1.81B
Stockholders Equity	1.36B	880.52M	1.35B	1.05B	1.44B
Cash Flow
Free Cash Flow	417.43M	-471.54M	158.61M	-483.42M	574.29M
Operating Cash Flow	482.47M	-424.12M	192.95M	-394.60M	595.39M
Investing Cash Flow	-51.20M	-230.22M	87.18M	-274.80M	-76.56M
Financing Cash Flow	-196.57M	495.63M	421.51M	129.87M	-306.16M

MarketEnterprise Co.Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1530.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3135, the sentiment is Negative. The current price of 1530 is above the 20-day moving average (MA) of 1206.30, above the 50-day MA of 1380.44, and below the 200-day MA of 1600.52, indicating a bearish trend. The MACD of -126.86 indicates Positive momentum. The RSI at 25.36 is Positive, neither overbought nor oversold. The STOCH value of 22.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3135.

MarketEnterprise Co.Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3179	66 Neutral	¥24.99B	17.26	―	3.53%	-2.73%	-51.48%
2652	66 Neutral	¥12.88B	8.87	―	0.30%	5.03%	-17.66%
3093	65 Neutral	¥45.48B	14.84	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥25.59B	12.89	―	0.95%	4.14%	―
3135	57 Neutral	¥5.39B	46.53	―	―	25.60%	―

MarketEnterprise Co.Ltd Corporate Events

MarketEnterprise Posts 16.2% Year-on-Year Sales Growth in January 2026

MarketEnterprise Co., Ltd. reported that its January 2026 sales rose 16.2% year-on-year on a value basis, continuing a trend of robust growth seen in prior months, though December had shown a softer 3.9% increase. The monthly data, which are provisional and subject to revision, indicate sustained demand and operational momentum, offering investors a positive signal about the company’s current trajectory despite short-term fluctuations in growth rates.

The most recent analyst rating on (JP:3135) stock is a Hold with a Yen1484.00 price target. To see the full list of analyst forecasts on MarketEnterprise Co.Ltd stock, see the JP:3135 Stock Forecast page.

Market Enterprise Hits Record Sales but Slips to Loss on Telecom Weakness

Market Enterprise Co., Ltd. reported record-high interim net sales of ¥12,966 million, up 13.0% year on year, and gross profit of ¥4,039 million, up 1.1%, driven in part by a recovery in its second-hand business for individuals from the second quarter. However, the Mobile & Telecommunications Business underperformed due to weak advertising efficiency, and higher costs including shareholder incentive program expenses led to an operating loss of ¥92 million and pushed the company into ordinary and net losses compared with profits in the previous year, signaling margin pressure despite top-line growth and highlighting execution risks in its telecom operations for stakeholders.

The most recent analyst rating on (JP:3135) stock is a Hold with a Yen1484.00 price target. To see the full list of analyst forecasts on MarketEnterprise Co.Ltd stock, see the JP:3135 Stock Forecast page.

MarketEnterprise Swings to Loss Despite Higher Sales and Cuts Full-Year Profit Outlook

MarketEnterprise reported a 13.0% year-on-year rise in net sales to ¥12,966 million for the six months ended December 31, 2025, but swung to a loss with operating profit at negative ¥92 million and profit attributable to owners of the parent at negative ¥215 million. The company’s equity ratio declined to 20.4% and it maintained a zero-dividend policy, while revising its full-year forecast to modest profit of ¥10 million on ¥26,900 million in sales, signaling earnings pressure and a significantly weaker margin outlook despite continued top-line growth.

Basic earnings per share fell to a loss of ¥40.30 for the period, compared with earnings of ¥28.79 a year earlier, underscoring the deterioration in profitability. The downward revision of full-year profit forecasts and continued suspension of dividends highlight a focus on preserving financial stability, which may concern income-oriented investors while indicating that management is prioritizing balance sheet resilience over shareholder payouts in the near term.

The most recent analyst rating on (JP:3135) stock is a Hold with a Yen1484.00 price target. To see the full list of analyst forecasts on MarketEnterprise Co.Ltd stock, see the JP:3135 Stock Forecast page.

MarketEnterprise Slashes FY6/2026 Earnings Forecast Amid Sharp Profit Decline

MarketEnterprise Co., Ltd. has sharply revised its earnings forecast for the fiscal year ending June 30, 2026, signaling a significant deterioration in expected performance compared with its previous outlook. The company now projects net sales of ¥26.9 billion, down 10.3% from the earlier forecast, indicating weaker-than-anticipated business momentum.

Profitability expectations have been cut even more severely, with operating profit forecast slashed by 83.9% to ¥180 million and ordinary profit reduced by 87.6% to ¥130 million. Profit attributable to owners of parent is now expected to be just ¥10 million, a 98.5% drop from the prior forecast and far below the previous year, implying substantial margin pressure and a sharp reduction in earnings per share.

The most recent analyst rating on (JP:3135) stock is a Hold with a Yen1484.00 price target. To see the full list of analyst forecasts on MarketEnterprise Co.Ltd stock, see the JP:3135 Stock Forecast page.

MarketEnterprise Reports Slower but Continued Sales Growth in December 2025

MarketEnterprise Co., Ltd. reported that its provisional sales for December 2025 rose 3.9% year on year, extending a run of monthly growth, though at a slower pace than the double-digit increases recorded from July to November. The moderation from earlier months’ strong expansion suggests sales momentum is normalizing as the company enters the remainder of its fiscal year ending June 2026, with investors likely to watch subsequent monthly disclosures to gauge whether this deceleration continues or stabilizes.

The most recent analyst rating on (JP:3135) stock is a Hold with a Yen1708.00 price target. To see the full list of analyst forecasts on MarketEnterprise Co.Ltd stock, see the JP:3135 Stock Forecast page.

MarketEnterprise to Shift TSE Listing from Prime to Standard as It Focuses on Second-Hand Market Growth

MarketEnterprise Co., Ltd. has applied to transfer its stock listing from the Tokyo Stock Exchange Prime Market to the Standard Market after concluding it could not meet, and was unlikely to meet by June 2026, the Prime Market’s tradable share market capitalization requirement despite previously announced remedial measures. The company emphasized that the market change will not alter its management approach focused on cost of capital, stock price, and robust disclosure and investor relations, and it plans to continue pursuing steady business growth and medium- to long-term enhancement of corporate value within Japan’s structurally growing second-hand goods market.

The most recent analyst rating on (JP:3135) stock is a Hold with a Yen1741.00 price target. To see the full list of analyst forecasts on MarketEnterprise Co.Ltd stock, see the JP:3135 Stock Forecast page.

MarketEnterprise Updates Shareholder Benefit Program

MarketEnterprise Co., Ltd. has announced a change in its shareholder benefit program, effective December 2025, by removing ‘JAL Mileage Bank’ from its list of digital gift redemption items. This adjustment reflects the company’s ongoing efforts to refine its offerings and could impact shareholder satisfaction and engagement.

The most recent analyst rating on (JP:3135) stock is a Hold with a Yen1741.00 price target. To see the full list of analyst forecasts on MarketEnterprise Co.Ltd stock, see the JP:3135 Stock Forecast page.