Mars Group Holdings Corporation (6419) AI Stock Analysis

• Market Cap: ¥54.22B
• Dividend Yield: 3.9%
• Average Volume (3M): 73.53K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.53
• Revenue Growth: -10.56%
• EPS Growth: -33.64%
• Country: JP
• Employees: 640
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 105.86
• Shares Outstanding: 22,720,000
• 10 Day Avg. Volume: 52,770
• 30 Day Avg. Volume: 73,526
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,588.00
• Price Target Upside: 10.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥3,588.00 ▲(10.91% Upside)

Mars Group Holdings Corporation's strong valuation and financial stability are the primary drivers of its overall score. The low P/E ratio and attractive dividend yield suggest potential undervaluation, while the company's solid balance sheet supports its financial health. However, technical indicators show potential overbought conditions, and declining revenue and cash flow growth present challenges that need addressing.

Mars Group Holdings Corporation Business Overview & Revenue Model

Company Description

Mars Group Holdings Corporation engages in amusement, automatic recognition system, and hotel related businesses. It designs, manufactures, and sells automatic recognition systems, such as RFID, bar code, two-dimensional code, and X-ray inspection systems; electronic devices and information equipment; and mechatronics-related products, including banknote identification machines, card readers, vending machines, and card printers, as well as plans and sells information processing equipment, and provides information processing services. The company is also involved in the software development business; design, construction, and supervision of construction works; hotel operation and related business; real estate leasing and management; content distribution business; and production and sale of printed advertising. In addition, it designs, manufactures, sells, and imports and exports electrical machinery, telecommunications machinery, precision machinery, office machinery and equipment, medical machinery and equipment, and related parts, as well as manufactures and sells stampings, dies, and other machine products. The company was founded in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mars Group Holdings Corporation generates revenue through multiple streams, primarily from its real estate development projects, which include residential and commercial properties. The company profits by selling or leasing these properties, capitalizing on market demand and strategic location choices. Additionally, its hospitality sector contributes significantly to earnings through hotel operations and management services. Partnerships with local governments and private entities often bolster project funding and expand market reach, while financial services provide another revenue stream by offering investment and advisory services to clients. Overall, the company's diverse portfolio and strategic collaborations enhance its financial performance.

Mars Group Holdings Corporation Financial Statement Overview

Summary

Mars Group Holdings Corporation demonstrates strong profitability and financial stability with low leverage and effective equity utilization. However, declining revenue and negative free cash flow growth in the TTM period highlight areas for improvement. The company should focus on reversing revenue decline and enhancing cash flow generation to sustain its financial health.

Income Statement

Mars Group Holdings Corporation shows strong profitability with a consistent gross profit margin around 49% in TTM. However, revenue has declined by 11.56% in the TTM period, indicating potential challenges in maintaining growth. The net profit margin remains healthy at 20.63%, reflecting effective cost management despite revenue pressures.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.007, suggesting strong financial stability and low leverage risk. Return on equity is solid at 11.42% in the TTM, indicating efficient use of equity to generate profits. The equity ratio is robust, underscoring a strong capital structure.

Cash Flow

Operating cash flow remains strong with a high coverage ratio of 1.78, indicating good cash generation relative to net income. However, free cash flow growth has turned negative in the TTM, which could signal potential cash flow challenges if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.37B	42.25B	36.58B	20.35B	15.10B	14.76B
Gross Profit	18.43B	20.85B	19.83B	11.24B	8.46B	8.04B
EBITDA	10.40B	13.30B	12.31B	4.70B	2.12B	1.66B
Net Income	6.97B	8.72B	8.59B	3.14B	1.86B	807.02M
Balance Sheet
Total Assets	87.27B	87.00B	83.96B	63.92B	60.14B	57.96B
Cash, Cash Equivalents and Short-Term Investments	35.82B	36.72B	29.70B	23.05B	26.35B	23.58B
Total Debt	565.11M	544.58M	529.33M	563.27M	806.80M	1.10B
Total Liabilities	8.17B	8.77B	12.70B	7.62B	5.89B	5.66B
Stockholders Equity	79.10B	78.23B	71.25B	56.31B	54.24B	52.30B
Cash Flow
Free Cash Flow	9.63B	9.81B	5.11B	-839.17M	1.59B	2.50B
Operating Cash Flow	10.48B	10.65B	6.45B	943.99M	3.57B	2.60B
Investing Cash Flow	-683.75M	-558.62M	-1.64B	-2.11B	423.98M	-590.49M
Financing Cash Flow	-3.57B	-3.07B	1.81B	-2.16B	-1.30B	-1.17B

Mars Group Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3235.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6419, the sentiment is Positive. The current price of 3235 is above the 20-day moving average (MA) of 3166.25, above the 50-day MA of 3016.12, and above the 200-day MA of 3052.73, indicating a bullish trend. The MACD of 54.48 indicates Positive momentum. The RSI at 76.68 is Negative, neither overbought nor oversold. The STOCH value of 87.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6419.

Mars Group Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6419	76 Outperform	¥54.22B	8.48		3.90%	-10.56%	-33.64%
Sector *	61 Neutral	$17.92B	12.81	-2.97%	2.98%	1.30%	-14.28%
SKXJF	―	$4.47B	7.65	22.96%	4.94%	―	―
7504	75 Outperform	¥56.87B	16.01		1.84%	11.80%	14.34%
6257	68 Neutral	¥22.78B	25.69		5.05%	-9.35%	-36.58%
8163	67 Neutral	¥53.22B	61.19		0.59%	14.44%	-55.16%
8200	67 Neutral	¥58.05B	53.95		0.53%	8.89%	26.29%

Mars Group Holdings Corporation Corporate Events

Mars Group Holdings Reports Decline in Q2 Financial Performance

Mars Group Holdings Corporation reported a significant decline in its financial performance for the three months ending June 30, 2025, with net sales dropping by 36% and operating profit by 50.4% compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio of 90.6%, indicating a solid financial position, but stakeholders may be concerned about the impact of these results on future earnings and dividends.

Mars Group Holdings Reports Increased Sales Amidst Declining Comprehensive Income

Mars Group Holdings Corporation reported a 15.5% increase in net sales for the fiscal year ending March 31, 2025, with operating and ordinary profits also rising. Despite these gains, the company’s comprehensive income decreased by 27.6% compared to the previous year. The company announced a higher annual dividend, including a special commemorative dividend, reflecting its commitment to shareholder returns. The forecast for the next fiscal year indicates a decline in sales and profits, suggesting potential challenges ahead.