MERCURY REALTECH INNOVATOR Inc. (5025) AI Stock Analysis

• Market Cap: ¥1.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.92K
• Price to Earnings (P/E): 30.1
• Beta (1Y): -0.03
• Revenue Growth: 24.78%
• EPS Growth: 149.06%
• Country: JP
• Employees: 62
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Services
• EPS (TTM): 20.83
• Shares Outstanding: 2,744,000
• 10 Day Avg. Volume: 1,210
• 30 Day Avg. Volume: 1,923
• PEG Ratio: 0.09
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 5.53
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥794.00 ▲(23.29% Upside)
• Action: Upgraded Date: 01/16/26
• Date: Action: Upgraded 01/16/26

The score is driven primarily by strong financial performance (growth, improving margins, very low leverage, and improving free cash flow), supported by a moderately bullish technical trend (price above key moving averages and positive MACD). Valuation is the main restraint due to a higher P/E and no stated dividend yield.

Positive Factors

Cash Generation

Free cash flow moved from negative to positive and operating cash flow converts earnings at a 2.71x rate. This durable cash-generation improvement supports reinvestment in product R&D, funds working capital needs, and reduces reliance on external financing over the next several quarters.

Balance Sheet Strength

Extremely low leverage and a high equity ratio give the company financial flexibility to fund growth initiatives, resist downturns, and pursue strategic investments or acquisitions without stressing interest-bearing debt, lowering long-term solvency and liquidity risks.

Margin Improvement

High gross margin and a positive net margin reflect scalable software/servicing economics and improving operational efficiency. Sustained margins enable profitability as revenue scales, supporting durable earnings power and the ability to fund customer acquisition and product development.

Negative Factors

Earnings Volatility

A steep reported EPS decline indicates volatile bottom-line performance that can undermine confidence in earnings quality. Persistent EPS weakness can constrain reinvestment, elevate scrutiny on profitability drivers, and increase execution pressure on management over months.

Limited Scale / Key-Person Risk

A small headcount limits bandwidth for engineering, sales, and enterprise implementation in a complex proptech market. This raises execution and key-person risk during scaling, and meaningful growth will likely require hiring that stresses operating margins and management bandwidth.

Low Public Liquidity

Very low three-month trading volume signals limited market liquidity, which can deter institutional investors, widen bid/ask spreads, and make raising equity or executing large transactions more costly or difficult, reducing access to public capital over time.

MERCURY REALTECH INNOVATOR Inc. Business Overview & Revenue Model

Company Description

MERCURY REALTECH INNOVATOR Inc. engages in the real estate information platform business in Japan. It provides Realnet, a software as a service type real estate information platform, which include apartment summary and search service, macro summary marketing system, property pamphlet and brochure download service, web marketing solutions, segment DM marketing research, data API, and human resource matching service, as well as Town Mansion Plus, a posting service that enables a detailed condominium segment by utilizing the real estate database. The company also offers Mansion Value, an owner's platform based on the concept of Japan's condominium owners club that provides various functions, such as management of assets and various contacts, viewing pamphlets, and drawings for construction sale; Mansion score, a standard service that quantitatively and objectively evaluates condominiums using data; condominium market price information by area, including average present value, rate of change, and number of units supplied posted for each city, line, and station; and DX support platform for the transformation of business models and associated contributions to business. MERCURY REALTECH INNOVATOR Inc. was incorporated in 1991 and is based in Tokyo, Japan.

How the Company Makes Money

MERCURY REALTECH INNOVATOR Inc. generates revenue through multiple streams, primarily by selling software licenses for its property management and analytics platforms. The company also offers subscription-based services that provide ongoing support, updates, and access to additional features. Significant partnerships with real estate firms and technology providers enhance its market reach and facilitate co-development of tailored solutions, thereby contributing to its earnings. Additionally, the company may engage in consulting services, helping clients optimize their use of technology in real estate operations, further diversifying its revenue sources.

MERCURY REALTECH INNOVATOR Inc. Financial Statement Overview

Summary

Strong fundamentals: revenue grew 22.7% YoY, profitability improved (gross margin 44.7%, net margin 7.2%), leverage is minimal (debt-to-equity 0.0026) with a high equity ratio (74.9%), and cash generation strengthened meaningfully (free cash flow turned positive; operating cash flow to net income 2.71).

Income Statement

MERCURY REALTECH INNOVATOR Inc. shows strong revenue growth with a 22.7% increase from the previous year. The gross profit margin improved to 44.7%, and the net profit margin increased to 7.2%, indicating enhanced profitability. The EBIT and EBITDA margins also improved, reflecting effective cost management and operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.0026, indicating minimal leverage. The equity ratio is strong at 74.9%, showing a healthy capital structure. Return on equity is robust at 14.2%, reflecting efficient use of equity to generate profits.

Cash Flow

Cash flow performance is impressive, with a significant increase in free cash flow, which grew from negative to positive, indicating improved cash generation. The operating cash flow to net income ratio is strong at 2.71, demonstrating effective cash conversion from profits.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	1.79B	1.76B	1.44B	1.41B	1.37B	1.25B
Gross Profit	797.25M	787.56M	571.31M	669.10M	714.79M	682.26M
EBITDA	253.56M	255.63M	152.84M	203.59M	226.10M	95.52M
Net Income	129.12M	126.54M	48.38M	92.37M	131.07M	43.73M
Balance Sheet
Total Assets	1.15B	1.19B	951.65M	968.50M	1.04B	607.53M
Cash, Cash Equivalents and Short-Term Investments	648.00M	683.05M	445.32M	479.72M	631.38M	234.35M
Total Debt	1.82M	2.28M	25.28M	58.37M	96.64M	235.81M
Total Liabilities	233.00M	298.24M	187.95M	259.18M	334.75M	424.81M
Stockholders Equity	915.00M	889.06M	763.70M	709.32M	705.24M	182.72M
Cash Flow
Free Cash Flow	0.00	329.83M	-25.16M	-15.13M	148.97M	37.94M
Operating Cash Flow	0.00	343.41M	61.35M	107.64M	221.79M	97.98M
Investing Cash Flow	0.00	-34.30M	-65.63M	-122.81M	-63.35M	-59.93M
Financing Cash Flow	0.00	-71.37M	-30.13M	-136.48M	248.19M	-39.18M

MERCURY REALTECH INNOVATOR Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 644.00
• 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:5025, the sentiment is Positive. The current price of 644 is below the 20-day moving average (MA) of 727.95, below the 50-day MA of 709.66, and below the 200-day MA of 695.52, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 52.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5025.

MERCURY REALTECH INNOVATOR Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5025	76 Outperform	¥1.92B	30.14	―	―	24.78%	149.06%
5028	65 Neutral	¥2.97B	29.23	―	―	33.55%	293.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9417	58 Neutral	¥3.74B	8.01	―	2.04%	14.34%	―
4416	57 Neutral	¥2.51B	51.60	―	―	5.05%	-50.80%
5035	52 Neutral	¥2.98B	-14.70	―	0.72%	4.40%	-336.50%
2345	47 Neutral	¥4.12B	-1.04	―	―	―	―