Mie Kotsu Group Holdings, Inc. (3232) AI Stock Analysis

• Market Cap: ¥51.33B
• Dividend Yield: 2.73%
• Average Volume (3M): 134.45K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.49
• Revenue Growth: 5.73%
• EPS Growth: 27.30%
• Country: JP
• Employees: 2,980
• Sector: Industrials
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): 20.63
• Shares Outstanding: 107,301,580
• 10 Day Avg. Volume: 219,250
• 30 Day Avg. Volume: 134,450
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥544.00
• Price Target Upside: 6.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥544.00 ▲(6.67% Upside)

The stock of Mie Kotsu Group Holdings, Inc. receives a balanced score, driven primarily by strong financial performance with significant revenue and profit growth, albeit offset by high leverage and negative free cash flow. The stock's valuation is attractive with a low P/E ratio and a decent dividend yield. Technical indicators suggest a neutral market position, with no significant momentum. Overall, the stock is well-valued but requires careful monitoring of financial health.

Mie Kotsu Group Holdings, Inc. Business Overview & Revenue Model

Company Description

Mie Kotsu Group Holdings, Inc. engages in the transportation, real estate, distribution, and leisure service businesses in Japan. It offers transit and charter bus services; operates intercity express buses and limousine buses for Chubu Centrair International Airport; and tour taxi services, as well as engages in the insurance, advertising, tourist consulting, and rental businesses. The company also sells housing properties; condominiums under the Praise brand; housing renovation, housing brokerage, and facility rental business under the SANCO HOME name; develops solar power plants; manages condominiums, buildings, and commercial facilities; and provides hotel housekeeping, renovates premises/equipment and condominiums, and trimming services for gardens and planted trees, as well as offers real estate appraising and compensation consulting services. In addition, it operates service stations; sells petroleum products and private cars; provides automobile repair services; runs Komeda's Coffee shops, restaurants, and wash house coin laundries under the WASH House name; and franchisees Tokyu Hands Nagoya, Tokyu Hands Kuwana, and Tokyu Hands Nagoya Mozo Wonder City stores; sells new trucks, buses, and used vehicles; produces and sells auto parts and supplies; and provides auto body manufacturing services. Further, the company operates 15 business hotels, Toba Seaside Hotel, Gozaisho Ropeway, elderly housing facility, resort golf course, Matsusaka Country Club, Yokkaichi Driving School, and Iseshima Skyline toll road; provides landscaping, security life support, and nursing care services. The company was incorporated in 2006 and is headquartered in Tsu, Japan.

How the Company Makes Money

Mie Kotsu Group Holdings, Inc. generates revenue through multiple streams primarily centered around its transportation and tourism operations. The company's railway services are a significant source of revenue, as it offers passenger transport across its network. Additionally, the company operates bus and taxi services, which contribute to its transportation income. The tourism sector provides another substantial revenue stream, with the company offering travel packages, hotel accommodations, and leisure facilities aimed at attracting tourists to the region. Partnerships with local businesses and governments also play a role in boosting its tourism-related earnings, by promoting regional attractions and facilitating travel packages. Overall, the integration of transportation and tourism services allows the company to maximize its revenue potential by capitalizing on synergies between these sectors.

Mie Kotsu Group Holdings, Inc. Financial Statement Overview

Summary

Mie Kotsu Group Holdings, Inc. showcases robust revenue and profit growth alongside improving profitability metrics. However, the high leverage and negative free cash flow highlight potential financial risks. The company's stability is bolstered by increased equity levels, but careful management of debt and cash flow is necessary to maintain financial health.

Income Statement

Mie Kotsu Group Holdings, Inc. demonstrates strong revenue growth of 5.73% in the latest year, with a consistent increase in gross profit margin to 27.60%. Net profit margin improved significantly to 5.83%, indicating enhanced profitability. However, EBIT and EBITDA margins show moderate growth, suggesting some operational efficiencies achieved over the period.

Balance Sheet

The company's debt-to-equity ratio remains high at 1.26, indicating significant leverage, but stockholders' equity has grown, enhancing financial stability. The equity ratio stands at 34.60%, reflecting a balanced asset structure. Return on equity improved to 9.64%, showcasing better utilization of equity to generate profits.

Cash Flow

While the operating cash flow to net income ratio of 1.50 suggests strong cash generation capabilities relative to net income, the free cash flow has turned negative in the latest year, pointing to higher capital expenditures. The free cash flow to net income ratio is -0.26, indicating challenges in maintaining positive free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	103.85B	98.22B	93.12B	84.35B	81.18B
Gross Profit	28.67B	23.35B	25.40B	21.88B	19.67B
EBITDA	14.06B	12.03B	10.77B	9.47B	6.02B
Net Income	6.06B	4.75B	3.77B	2.21B	-1.75B
Balance Sheet
Total Assets	181.61B	181.29B	167.90B	165.15B	165.69B
Cash, Cash Equivalents and Short-Term Investments	5.42B	9.67B	9.33B	7.38B	8.25B
Total Debt	79.19B	80.67B	79.60B	82.38B	85.51B
Total Liabilities	118.43B	121.96B	115.12B	116.76B	117.94B
Stockholders Equity	62.83B	59.01B	52.47B	48.10B	47.48B
Cash Flow
Free Cash Flow	-1.57B	70.79M	5.88B	4.62B	-235.80M
Operating Cash Flow	9.10B	6.37B	8.36B	8.73B	9.25B
Investing Cash Flow	-11.26B	-5.63B	-2.49B	-5.15B	-11.92B
Financing Cash Flow	-2.69B	-52.65M	-3.71B	-3.86B	3.91B

Mie Kotsu Group Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 510.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3232, the sentiment is Positive. The current price of 510 is above the 20-day moving average (MA) of 499.50, above the 50-day MA of 493.48, and above the 200-day MA of 494.14, indicating a bullish trend. The MACD of 5.08 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 94.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3232.

Mie Kotsu Group Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9045	74 Outperform	¥319.30B	11.80	9.19%	1.26%	3.77%	15.05%
9048	73 Outperform	¥324.27B	8.58		2.28%	14.91%	54.74%
Sector *	71 Outperform	¥257.35B	14.36	8.48%	2.83%	6.31%	12.01%
9041	71 Outperform	¥559.91B	11.98	8.66%	1.70%	6.89%	-2.82%
3232	71 Outperform	¥51.33B	8.43		2.73%	5.73%	27.30%
9003	68 Neutral	¥238.58B	12.33		2.26%	-1.07%	-10.05%
9010	66 Neutral	¥114.16B	22.40		1.33%	3.02%	11.73%

Mie Kotsu Group Holdings, Inc. Corporate Events

Mie Kotsu Group Announces Treasury Share Disposal for Executive Incentives

Mie Kotsu Group Holdings, Inc. announced the disposal of 266,100 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and executive officers. This initiative is designed to align the interests of the company’s leadership with shareholders, promoting sustainable growth and enhancing corporate value over the medium to long term.

Mie Kotsu Group Announces Controlling Shareholder Details and Emphasizes Independence

Mie Kotsu Group Holdings, Inc. has announced details regarding its controlling shareholders, highlighting the influence of Kintetsu Group Holdings Co., Ltd. on its operations. Despite having two officers holding concurrent positions with Kintetsu, Mie Kotsu maintains its independent management decisions and ensures no business constraints or risks due to regional focus differences. The company emphasizes its cooperative relationship with Kintetsu in promoting tourism and business collaboration.

Mie Kotsu Group Holdings Announces New Dividend Policy

Mie Kotsu Group Holdings, Inc. announced a change in its dividend policy to enhance shareholder returns by setting a specific target for the consolidated dividend payout ratio at 30%, effective from the fiscal year ending March 31, 2026. This change reflects the company’s commitment to sustainable growth in corporate value and aims to align profits returned to shareholders with earnings growth.

Mie Kotsu Group Revises Mid-term Plan Targets Amid Strong Performance

Mie Kotsu Group Holdings, Inc. has revised its numerical targets for the final fiscal year of its Mid-term Management Plan (2023–2026) due to stronger-than-expected performance, particularly in its business hotel operations. The revisions reflect the company’s improved earnings outlook, driven by a robust recovery in leisure demand and inbound tourism, with operating profit and profit attributable to owners of the parent both seeing upward adjustments.

Mie Kotsu Group Announces Executive Changes

Mie Kotsu Group Holdings, Inc. announced proposed changes in its executive officers, to be finalized at the upcoming Ordinary General Meeting of Shareholders on June 17, 2025. These changes are expected to impact the company’s strategic planning and operational management, potentially influencing its market positioning and stakeholder relationships.