MarketEnterprise Co.Ltd (3135) AI Stock Analysis

• Market Cap: ¥10.06B
• Dividend Yield: N/A
• Average Volume (3M): 30.43K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.86
• Revenue Growth: 30.32%
• EPS Growth: N/A
• Country: JP
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Specialty Retail
• EPS (TTM): 38.81
• Shares Outstanding: 5,351,800
• 10 Day Avg. Volume: 38,630
• 30 Day Avg. Volume: 30,433
• 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: ¥2,098.00
• Price Target Upside: 11.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,098.00 ▲(11.60% Upside)

MarketEnterprise Co.Ltd scores well due to its strong financial performance and bullish technical indicators. The company's consistent revenue growth and improved cash flow management are significant positives. However, the high P/E ratio and overbought technical indicators suggest caution, as the stock may be overvalued and due for a correction.

MarketEnterprise Co.Ltd Business Overview & Revenue Model

Company Description

MarketEnterprise Co., Ltd. (3135) is a Japanese company primarily engaged in the operation of e-commerce platforms and the provision of used goods. The company focuses on the buying and selling of second-hand products, predominantly through its online marketplace. MarketEnterprise's core operations involve facilitating transactions for a wide range of consumer goods, including electronics, home appliances, and other lifestyle products.

How the Company Makes Money

MarketEnterprise Co., Ltd. generates revenue through its e-commerce platforms, where it facilitates the buying and selling of second-hand goods. The company earns money by charging transaction fees or commissions on sales made through its online marketplace. Additionally, MarketEnterprise may generate income from ancillary services such as logistics, advertising, or premium listing options for sellers. The company's partnerships with other retailers or platforms can also provide additional revenue streams, enhancing its ability to reach a broader customer base and increase sales volume.

MarketEnterprise Co.Ltd Financial Statement Overview

Summary

The company demonstrates strong revenue growth and satisfactory profitability with a gross profit margin of 35.55% and a net profit margin of 1.38%. However, high leverage and lack of cash flow generation pose significant risks.

Income Statement

The company shows a strong TTM gross profit margin of 35.55% and a positive net profit margin of 1.38%, indicating profitability. The revenue growth rate from 2023 to 2024 is impressive at 24.57%, showcasing robust growth. However, the EBIT margin is modest at 2.68%, and the EBITDA margin is lower, reflecting potential operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is relatively high at 2.23, suggesting significant leverage, which could pose risks if not managed properly. The return on equity (ROE) is a modest 29.50%, indicating decent returns for shareholders. The equity ratio is a stable 18.22%, but the high leverage warrants caution.

Cash Flow

The company’s free cash flow growth rate is unavailable due to zero values, indicating potential issues in cash generation. The operating cash flow to net income ratio and free cash flow to net income ratio cannot be calculated, raising concerns about cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.51B	24.77B	19.01B	15.26B	11.99B	10.88B
Gross Profit	8.28B	8.50B	6.94B	5.82B	4.27B	3.88B
EBITDA	926.92M	802.66M	-20.97M	772.15M	-203.70M	164.17M
Net Income	451.63M	484.71M	-476.30M	290.40M	-404.19M	-40.12M
Balance Sheet
Total Assets	5.98B	6.24B	5.35B	4.85B	3.53B	3.46B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.71B	1.49B	1.64B	941.70M	1.47B
Total Debt	2.28B	2.17B	2.32B	1.75B	1.22B	1.08B
Total Liabilities	4.28B	4.32B	4.04B	3.15B	2.24B	1.81B
Stockholders Equity	1.16B	1.36B	880.52M	1.35B	1.05B	1.44B
Cash Flow
Free Cash Flow	0.00	417.43M	-471.54M	158.61M	-483.42M	574.29M
Operating Cash Flow	0.00	482.47M	-424.12M	192.95M	-394.60M	595.39M
Investing Cash Flow	0.00	-51.20M	-230.22M	87.18M	-274.80M	-76.56M
Financing Cash Flow	0.00	-196.57M	495.63M	421.51M	129.87M	-306.16M

MarketEnterprise Co.Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1880.00
• 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:3135, the sentiment is Positive. The current price of 1880 is above the 20-day moving average (MA) of 1718.15, above the 50-day MA of 1615.48, and above the 200-day MA of 1429.16, indicating a bullish trend. The MACD of 77.14 indicates Negative momentum. The RSI at 79.65 is Negative, neither overbought nor oversold. The STOCH value of 95.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3135.

MarketEnterprise Co.Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	81 Outperform	¥24.89B	11.37		4.24%	8.63%	-3.75%
3542	75 Outperform	¥24.16B	36.87		0.48%	7.62%	18.02%
3135	74 Outperform	¥10.06B	20.72		―	30.32%	―
3093	73 Outperform	¥42.94B	15.05		2.01%	19.76%	11.62%
9272	72 Outperform	¥15.68B	63.26		―	25.00%	-56.39%
2751	70 Outperform	¥41.38B	20.26		0.26%	26.92%	4.19%
Sector *	61 Neutral	$17.60B	14.14	-5.40%	3.04%	1.40%	-15.06%

MarketEnterprise Co.Ltd Corporate Events

MarketEnterprise Announces Gain from Stock Forward Transaction Cancellation

MarketEnterprise Co., Ltd. announced a gain of 96 million yen from the cancellation of a stock forward transaction contract, which will be recorded as non-operating income for the fiscal year ending June 30, 2025. This gain was not included in the company’s previous financial forecast, and the company is currently assessing its impact on the overall financial results.

MarketEnterprise Expands Shareholder Benefit Program

MarketEnterprise Co., Ltd. has announced an expansion of its shareholder benefit program, allowing shareholders to exchange digital gifts worth 25,000 yen in any combination and number of times. This change is intended to increase the appeal of investing in the company’s stocks, reflecting a strategic move to strengthen shareholder relations and potentially improve market positioning.

MarketEnterprise Evaluates Board Effectiveness, Plans Strategic Improvements

MarketEnterprise Co., Ltd. conducted an evaluation of its Board of Directors’ effectiveness, adhering to the Tokyo Stock Exchange’s Corporate Governance Code. The assessment, which involved self-evaluations by directors and audit members, concluded that the board is functioning effectively, though it identified areas for improvement, such as enhancing discussions on long-term strategies and evaluating management performance. The company plans to implement measures to bolster board performance, aiming for sustained corporate growth and improved governance.

MarketEnterprise Announces Early Termination of Stock Forward Transaction

MarketEnterprise Co., Ltd. has announced the early termination of its stock forward transaction contract with SBI SECURITIES Co., Ltd., effective May 21, 2025. This decision allows SBI Securities to sell a specified number of MarketEnterprise shares within three months, considering market conditions to minimize impact. The financial outcome of this transaction will be finalized by the end of the third quarter, with potential implications for the company’s fiscal forecasts.

Market Enterprise Co., Ltd. Reports Record Financial Growth

Market Enterprise Co., Ltd. reported significant financial growth for the nine months ending March 31, 2025, with record highs in net sales and gross profit driven by its second-hand online and mobile telecommunications businesses. The company achieved a 34% increase in net sales and a 28% rise in gross profit year-over-year, alongside a marked improvement in operating profit margin. The operating profit reached 474 million yen, a 344.9% increase from the previous year, and the ordinary profit turned positive at 545 million yen, indicating a strong recovery from last year’s losses.

MarketEnterprise Reports Strong Financial Growth for Nine Months Ending March 2025

MarketEnterprise Co., Ltd. reported significant financial growth for the nine months ending March 31, 2025, with net sales increasing by 34% year-on-year to 17,763 million yen. The company also achieved substantial improvements in operating and ordinary profits, indicating a strong recovery from the previous year’s losses. This financial performance highlights the company’s strengthened market position and potential positive implications for stakeholders.