MarketEnterprise Co.Ltd (3135) AI Stock Analysis

• Market Cap: ¥7.83B
• Dividend Yield: N/A
• Average Volume (3M): 61.45K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.05
• Revenue Growth: 35.50%
• EPS Growth: N/A
• Country: JP
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 23.15
• Shares Outstanding: 5,351,800
• 10 Day Avg. Volume: 77,110
• 30 Day Avg. Volume: 61,446
• PEG Ratio: -0.18
• Price to Book (P/B): 6.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 55.67
• 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

• Rating: 61 Neutral
• Price Target: ¥1,543.00 ▲(5.47%Upside)

The stock score is influenced primarily by financial performance challenges, including high leverage and cash flow concerns, despite strong revenue growth. Technical indicators suggest a bearish sentiment, contributing to a lower score. Valuation metrics indicate the stock is fairly valued, but the lack of a dividend yield reduces its appeal.

MarketEnterprise Co.Ltd Business Overview & Revenue Model

Company Description

MarketEnterprise Co., Ltd. is a Japanese company that operates a sustainable business model by engaging in the purchase, sale, and rental of used goods. The company specializes in various sectors, including consumer electronics, home appliances, and agricultural equipment, focusing on environmentally friendly practices. By leveraging an online platform, MarketEnterprise provides a marketplace for second-hand goods, appealing to cost-conscious consumers and environmentally aware individuals.

How the Company Makes Money

MarketEnterprise Co., Ltd. generates revenue through the sale and rental of used goods via its online platform and physical stores. The company purchases pre-owned items at a lower cost, refurbishes them if necessary, and sells or rents them at a competitive price. This model allows MarketEnterprise to earn a margin on the difference between the purchase and sale prices. Additionally, the company benefits from strategic partnerships with manufacturers and retailers, enabling them to acquire inventory at advantageous rates. The emphasis on sustainability and cost-effectiveness attracts a growing customer base, contributing to its overall earnings.

MarketEnterprise Co.Ltd Financial Statement Overview

Summary

MarketEnterprise Co.Ltd demonstrates strong revenue growth with a 24.57% increase from 2023 to 2024 and satisfactory profitability with a 1.38% net profit margin. However, financial health shows high leverage with a debt-to-equity ratio of 2.23 and issues with cash flow stability due to zero free cash flow growth rate, indicating potential 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	21.96B	19.01B	15.26B	11.99B	10.88B	10.90B
Gross Profit	7.80B	6.94B	5.82B	4.27B	3.88B	4.24B
EBITDA	598.26M	-20.97M	772.15M	-203.70M	164.17M	718.25M
Net Income	303.80M	-476.30M	290.40M	-404.19M	-40.12M	291.69M
Balance Sheet
Total Assets	5.65B	5.35B	4.85B	3.53B	3.46B	4.02B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.49B	1.64B	941.70M	1.47B	1.26B
Total Debt	2.30B	2.32B	1.75B	1.22B	1.08B	1.36B
Total Liabilities	4.13B	4.04B	3.15B	2.24B	1.81B	2.40B
Stockholders Equity	1.03B	880.52M	1.35B	1.05B	1.44B	1.44B
Cash Flow
Free Cash Flow	0.00	-471.54M	158.61M	-483.42M	574.29M	-106.55M
Operating Cash Flow	0.00	-424.12M	192.95M	-394.60M	595.39M	-64.51M
Investing Cash Flow	0.00	-230.22M	87.18M	-274.80M	-76.56M	-603.00M
Financing Cash Flow	0.00	495.63M	421.51M	129.87M	-306.16M	760.13M

MarketEnterprise Co.Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1463.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1463 is below the 20-day moving average (MA) of 1603.55, below the 50-day MA of 1566.26, and above the 200-day MA of 1280.91, indicating a neutral trend. The MACD of 1.67 indicates Positive momentum. The RSI at 36.91 is Neutral, neither overbought nor oversold. The STOCH value of 16.04 is Positive, 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
3542	75 Outperform	¥18.59B	30.74		0.63%	-5.08%	198.67%
2751	74 Outperform	¥40.07B	19.62		39.01%	24.11%	22.03%
9272	72 Outperform	¥13.79B	52.08		―	17.15%	-57.58%
2674	70 Outperform	¥23.67B	10.24		4.46%	11.38%	10.55%
3093	65 Neutral	¥43.49B	15.70		0.22%	22.50%	20.53%
Sector *	61 Neutral	AU$2.78B	25.79	5.01%	5.27%	2.63%	-29.95%
3135	61 Neutral	¥7.83B	17.26		―	35.50%	―

MarketEnterprise Co.Ltd Corporate Events

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.

MarketEnterprise Reports Strong Sales Growth in March 2025

MarketEnterprise Co., Ltd. reported a 127.9% year-on-year increase in sales for March 2025, continuing a trend of strong monthly sales growth throughout FY2024. This consistent growth reflects positively on the company’s operational performance and market positioning, suggesting a robust demand for its offerings.

MarketEnterprise Reports Gain from Stock Forward Transaction Cancellation

MarketEnterprise Co., Ltd. has announced a gain of 69 million yen from the cancellation of a stock forward transaction contract, which will be recorded as non-operating income for the nine months ended March 31, 2025. This gain has not been included in the previously disclosed financial forecast for the fiscal year ending June 30, 2025, and the company is currently assessing its impact on the financial results.