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

• Market Cap: ¥53.62B
• Dividend Yield: 2.97%
• Average Volume (3M): 167.55K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.54
• Revenue Growth: -2.75%
• EPS Growth: -3.17%
• Country: JP
• Employees: 2,980
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 18.94
• Shares Outstanding: 107,301,580
• 10 Day Avg. Volume: 76,800
• 30 Day Avg. Volume: 167,546
• PEG Ratio: 0.30
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -32.06
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥602.00 ▲(12.52% Upside)

Mie Kotsu Group Holdings, Inc. demonstrates strong financial performance with robust revenue and profit growth, although high leverage and negative free cash flow pose risks. The technical analysis indicates a positive trend, and the valuation suggests the stock is undervalued with an attractive dividend yield. These factors contribute to a solid overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance service offerings, supporting long-term business sustainability.

Profitability Improvement

Improved profitability margins suggest better cost management and operational efficiencies, which can lead to sustained financial health and competitive advantage.

Equity Growth

Increased equity levels provide a stronger financial base, reducing risk and supporting future investment and growth opportunities.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow suggests challenges in covering capital expenditures, which could hinder the company's ability to invest in new projects or pay down debt.

Capital Expenditures

Increased capital expenditures, while potentially beneficial for growth, can strain cash resources and affect short-term liquidity, requiring careful financial management.

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 generates revenue primarily through its core transportation services, including bus and taxi operations, which account for a significant portion of its income. The company charges fares for its transportation services, which vary based on distance and type of service. Additional revenue streams include travel-related services such as ticket sales for sightseeing tours and package deals for tourists. The company may also engage in partnerships with local businesses and tourism boards to promote travel packages, which can contribute to its earnings. Seasonal promotions and collaborations with local events further enhance its revenue potential, allowing the company to capitalize on increased travel demand during peak periods.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.24B	103.85B	98.22B	93.12B	84.35B	81.18B
Gross Profit	28.90B	28.67B	23.35B	25.40B	21.88B	19.67B
EBITDA	13.92B	14.06B	12.03B	10.77B	9.47B	6.02B
Net Income	6.04B	6.06B	4.75B	3.77B	2.21B	-1.75B
Balance Sheet
Total Assets	184.42B	181.61B	181.29B	167.90B	165.15B	165.69B
Cash, Cash Equivalents and Short-Term Investments	4.94B	5.42B	9.67B	9.33B	7.38B	7.11B
Total Debt	84.63B	79.19B	80.67B	79.60B	82.38B	85.51B
Total Liabilities	120.59B	118.43B	121.96B	115.12B	116.76B	117.94B
Stockholders Equity	63.46B	62.83B	59.01B	52.47B	48.10B	47.48B
Cash Flow
Free Cash Flow	0.00	-1.57B	70.79M	5.88B	4.62B	-235.80M
Operating Cash Flow	0.00	9.10B	6.37B	8.36B	8.73B	9.25B
Investing Cash Flow	0.00	-11.26B	-5.63B	-2.49B	-5.15B	-11.92B
Financing Cash Flow	0.00	-2.69B	-52.65M	-3.71B	-3.86B	3.91B

Mie Kotsu Group Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 535.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 535 is below the 20-day moving average (MA) of 536.90, above the 50-day MA of 534.54, and above the 200-day MA of 511.80, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, 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
3232	74 Outperform	¥53.62B	9.07	―	2.97%	-2.75%	-3.17%
9003	72 Outperform	¥276.45B	13.71	―	2.30%	-1.88%	-9.94%
9045	68 Neutral	¥339.76B	12.12	8.87%	1.19%	-8.30%	14.55%
9048	66 Neutral	¥325.84B	11.86	―	2.26%	6.13%	-23.73%
9041	64 Neutral	¥573.79B	11.80	8.64%	1.82%	3.90%	5.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9010	60 Neutral	¥111.14B	21.04	―	1.40%	4.80%	30.05%

Mie Kotsu Group Holdings, Inc. Corporate Events

Mie Kotsu Group Holdings Reports Semi-Annual Financial Results

Mie Kotsu Group Holdings, Inc. reported its consolidated financial results for the six months ended September 30, 2025. The company experienced a slight decrease in operating revenue and profit attributable to owners compared to the previous year, while comprehensive income saw a significant increase. The company also announced a forecast for the fiscal year ending March 31, 2026, with expectations of increased operating revenue and profit. The equity-to-asset ratio improved slightly, reflecting a stable financial position.

Mie Kotsu Group Announces Increased Interim Dividend

Mie Kotsu Group Holdings, Inc. has announced an interim dividend of 8 yen per share, with a total dividend amount of 804,176,720 yen, reflecting an increase from the previous year’s interim dividend. This decision aligns with the company’s policy of returning profits to shareholders while maintaining a stable management platform and aiming for a consolidated payout ratio of 30% each fiscal year, indicating a commitment to sustainable earnings growth.

Mie Kotsu Group Holdings Revises Financial Forecast Upward Amid Strong Demand

Mie Kotsu Group Holdings, Inc. has revised its financial forecast for the fiscal year ending March 31, 2026, based on improved performance trends. The company expects higher operating revenues in its chartered bus and hotel operations due to increased demand and higher unit prices, as well as in its automotive sales distribution business. Despite rising labor costs, the company anticipates increased profits due to decreased operating expenses and strong first-half performance.