Mandom (4917) AI Stock Analysis

• Market Cap: $61.13B
• Dividend Yield: 2.94%
• Average Volume (3M): 159.79K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.33
• Revenue Growth: 4.03%
• EPS Growth: -28.63%
• Country: JP
• Employees: 2,672
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Household & Personal Products
• EPS (TTM): 0.84
• Shares Outstanding: 48,269,210
• 10 Day Avg. Volume: 144,420
• 30 Day Avg. Volume: 159,793
• PEG Ratio: -2.29
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.17
• 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: $1,588.89
• Price Target Upside: 16.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥1,456.00 ▲(7.14%Upside)

Mandom's strong balance sheet and improving cash flows are the primary strengths, contributing positively to the stock score. Technical analysis presents mixed signals, and the high P/E ratio suggests overvaluation, which tempers the overall score. The dividend yield provides some compensation for the valuation risks.

Mandom Business Overview & Revenue Model

Company Description

Mandom Corporation engages in the manufacture and sale of cosmetics, perfumes, and quasi-drugs in Japan, Indonesia, and internationally. It offers a range of products, including men's everyday grooming products, as well as general fashion items, such as hair styling, skin care, and body care products; and hair coloring, scalp care, and face care products under the Gatsby and Lúcido brands. The company also provides a range of women's grooming and fashion items, such as hair styling and body care products comprises make-up and skin care items, as well as hair styling, coloring, and treatment products under the Bifesta, Pixy, Lúcido-L, and Pucelle brands. In addition, it offers professional-use products and technologies to hair salons through distributors; and provides insurance agency, travel, and general services. Mandom Corporation sells its products to drug stores and convenience stores through distributors. The company was formerly known as Tancho Corporation and changed its name to Mandom Corporation in April 1971. Mandom Corporation was founded in 1927 and is headquartered in Osaka, Japan.

How the Company Makes Money

Mandom Corporation generates revenue primarily through the sale of its personal care products, which include hair styling products, skincare items, and fragrances. The company sells these products through various retail channels, including direct sales to consumers via its online platforms and through partnerships with retail stores and distributors. Key revenue streams include domestic sales in Japan and international sales, particularly in Southeast Asian markets. Mandom also benefits from brand loyalty and recognition in these regions, contributing to steady sales growth. Strategic marketing efforts and product innovation play significant roles in maintaining and expanding its market share.

Mandom Financial Statement Overview

Summary

Mandom demonstrates strong financial health with stable revenue growth and a solid balance sheet. The company maintains a strong equity base and minimal leverage, reducing financial risk. Despite some pressure on operational margins, cash flow generation remains robust, supporting ongoing operations and potential growth initiatives.

Income Statement

Mandom's income statement shows positive growth trends with a notable revenue increase from ¥73.23B to ¥75.69B in TTM, marking a 3.5% growth. The gross profit margin is healthy at 41.2%, while the net profit margin is at a stable 3.0%. However, EBIT margin has decreased to 1.5%, indicating pressure on operational efficiency. The EBITDA margin remains robust at 7.7%, suggesting strong operational cash flow capabilities.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.0013, reflecting minimal leverage and financial risk. Return on equity is positive at 3.3%, showcasing effective utilization of equity. The equity ratio stands at 71.5%, highlighting strong capital structure and financial stability.

Cash Flow

Mandom's cash flow statement indicates a decline in free cash flow from ¥5.06B to ¥3.90B, a decrease of 22.9%. The operating cash flow to net income ratio is high at 2.4, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also favorable at 1.7, suggesting that free cash flow surpasses net income, which is a positive indicator.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
75.69B	73.23B	67.05B	57.36B	63.31B	81.77B
	Gross Profit
31.16B	31.53B	28.68B	23.40B	29.43B	42.28B
	EBIT
1.15B	2.02B	1.41B	-2.31B	-793.00M	5.97B
	EBITDA
5.80B	8.58B	6.65B	4.82B	4.24B	10.56B
	Net Income Common Stockholders
2.27B	2.60B	958.00M	-621.00M	860.00M	4.45B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.98B	26.98B	21.49B	20.02B	16.14B	15.68B
	Total Assets
95.91B	93.27B	91.00B	85.77B	87.91B	91.66B
	Total Debt
89.00M	102.00M	142.00M	226.00M	3.69B	43.00M
	Net Debt
-28.89B	-26.88B	-21.35B	-19.79B	-12.45B	-15.64B
	Total Liabilities
20.88B	20.06B	19.82B	16.72B	18.20B	18.21B
	Stockholders Equity
68.59B	66.52B	65.12B	63.32B	64.22B	67.11B
Cash Flow		Free Cash Flow
3.90B	5.06B	2.45B	5.60B	-2.67B	-2.53B
	Operating Cash Flow
5.44B	6.81B	4.07B	7.69B	6.21B	6.94B
	Investing Cash Flow
-639.00M	-887.00M	-1.26B	-185.00M	-5.68B	-9.84B
	Financing Cash Flow
-2.23B	-2.11B	-2.07B	-5.38B	1.13B	-8.31B

Mandom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1359.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4917, the sentiment is Positive. The current price of 1359 is above the 20-day moving average (MA) of 1343.75, above the 50-day MA of 1337.70, and above the 200-day MA of 1264.47, indicating a bullish trend. The MACD of 9.67 indicates Negative momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 66.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4917.

Mandom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4917	67 Neutral	$61.13B	32.94	2.70%	2.94%	4.03%	-28.63%
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
KOSCF		$2.29B	61.42	2.08%	0.01%	―	―
MIOFF		$562.19M	30.44	9.60%	1.16%	―	―
PORBF		$2.05B	42.37	4.49%	4.24%	―	―
4928	76 Outperform	¥147.90B	18.16		5.28%	1.51%	5.48%
4923	73 Outperform	¥42.34B	31.17		1.39%	2.52%	-7.44%

Mandom Corporate Events

Mandom Corporation Reports Fiscal Year 2025 Results with Optimistic Outlook for 2026

Mandom Corporation reported its consolidated business results for the fiscal year ended March 31, 2025, showing a 4% increase in net sales compared to the previous year. However, the company faced significant declines in operating and ordinary income, with drops of 49.1% and 26.8% respectively, attributed to various operational challenges. Despite these setbacks, Mandom’s comprehensive income rose by 33.9%, and the company forecasts a strong recovery in the next fiscal year with anticipated increases in net sales and income.

Mandom Corporation Revises Financial Forecasts Upward

Mandom Corporation has revised its financial forecast for the fiscal year ending March 31, 2025, with expectations of higher operating, ordinary, and net income compared to initial projections. This improvement is attributed to lower-than-expected costs of sales in Japan, enhanced profitability through product price revisions, reduced expenses, and increased interest income, indicating a positive impact on the company’s financial performance.