Mercuria Holdings Co., Ltd. (7347) AI Stock Analysis

• Market Cap: ¥15.87B
• Dividend Yield: 2.52%
• Average Volume (3M): 33.32K
• Price to Earnings (P/E): 231.5
• Beta (1Y): 1.11
• Revenue Growth: 1.35%
• EPS Growth: -91.61%
• Country: JP
• Employees: 23
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 8.67
• Shares Outstanding: 21,549,900
• 10 Day Avg. Volume: 23,580
• 30 Day Avg. Volume: 33,323
• PEG Ratio: -0.58
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 23.34
• 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: 62 Neutral
• Price Target: ¥886.00 ▲(8.31% Upside)

Mercuria Holdings' strong financial stability and lack of debt are significant positives, but the high P/E ratio raises concerns about overvaluation. Technical indicators suggest a neutral market sentiment, lacking strong momentum. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Financial Stability

Mercuria's strong equity and absence of debt enhance financial resilience, providing flexibility to invest in growth opportunities without the burden of interest payments.

Revenue Diversification

Diversified revenue streams from real estate, renewable energy, and financial services reduce dependency on a single sector, enhancing stability and potential for growth.

Operational Efficiency

Strong EBIT and EBITDA margins reflect effective cost management and operational efficiency, which support profitability even amidst revenue fluctuations.

Negative Factors

Revenue Growth Volatility

Inconsistent revenue growth and recent declines pose challenges to sustaining long-term growth, requiring strategic adjustments to stabilize and enhance revenue streams.

Cash Flow Fluctuations

Fluctuating free cash flow due to capital expenditure changes can impact the company's ability to fund new projects and return capital to shareholders consistently.

Net Profit Margin Variability

Variability in net profit margins indicates potential instability in profitability, which could affect the company's ability to maintain consistent earnings growth.

Mercuria Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Mercuria Holdings Co., Ltd., together with its subsidiaries, engages in the fund management business. It is also involved in the Spring real estate investment trust management and operation; investment advisory and management; and asset management activities. The company was incorporated in 2021 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mercuria Holdings generates revenue through multiple streams, primarily derived from its real estate investments and management fees. The company earns rental income from its managed properties and capital gains from real estate transactions. Additionally, revenue is generated from its investments in renewable energy projects, which benefit from government subsidies and long-term power purchase agreements. The financial services sector provides further income through asset management fees, as Mercuria offers tailored investment products to clients. Strategic partnerships with other investment firms and technology providers also enhance its earning potential by diversifying its portfolio and leveraging new market opportunities.

Mercuria Holdings Co., Ltd. Financial Statement Overview

Summary

Mercuria Holdings exhibits a stable financial position with strong equity and no debt burden, enhancing its financial resilience. However, fluctuations in revenue growth and cash flow generation highlight the need for careful management to sustain profitability and support growth.

Income Statement

Mercuria Holdings has shown a mixed performance over recent years. The gross profit margin has been strong, reflecting effective cost management. However, the net profit margin has been fluctuating due to varying net income levels. The revenue growth rate has been inconsistent, with a recent decline in revenue leading to a negative growth rate. Despite this, the company maintains a healthy EBIT and EBITDA margin, indicating operational efficiency.

Balance Sheet

The balance sheet of Mercuria Holdings is robust, with a strong equity base and no long-term debt, which enhances financial stability. The company has a high equity ratio, reflecting strong capitalization. The return on equity has shown variability but remains positive, indicating profitability for shareholders. The absence of debt enhances financial flexibility and reduces risk exposure.

Cash Flow

Mercuria Holdings' cash flow performance demonstrates some volatility. While the operating cash flow has been positive in recent years, the free cash flow has experienced fluctuations due to changes in capital expenditures and cash flow from operations. The operating cash flow to net income ratio is favorable, indicating efficient cash generation. However, the free cash flow growth rate shows inconsistency, suggesting potential challenges in sustaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.24B	5.57B	5.84B	4.60B	4.17B	6.18B
Gross Profit	4.04B	4.53B	4.03B	4.39B	3.64B	2.38B
EBITDA	637.30M	1.05B	1.58B	2.12B	1.82B	821.11M
Net Income	68.58M	505.72M	1.06B	1.56B	1.30B	525.13M
Balance Sheet
Total Assets	19.12B	21.05B	19.66B	19.98B	18.01B	15.06B
Cash, Cash Equivalents and Short-Term Investments	1.82B	18.47B	16.70B	16.44B	15.28B	2.88B
Total Debt	643.00M	0.00	88.23M	843.50M	873.50M	1.36B
Total Liabilities	2.07B	2.16B	1.42B	2.44B	2.19B	2.59B
Stockholders Equity	15.97B	17.51B	17.09B	16.63B	15.11B	11.91B
Cash Flow
Free Cash Flow	0.00	653.00M	1.19B	-373.34M	145.34M	-254.73M
Operating Cash Flow	0.00	655.00M	1.24B	-349.43M	178.60M	-248.90M
Investing Cash Flow	0.00	-9.79M	497.85M	-583.05M	227.56M	-389.85M
Financing Cash Flow	0.00	-416.03M	-1.74B	-796.97M	1.35B	-149.85M

Mercuria Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 818.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7347, the sentiment is Negative. The current price of 818 is below the 20-day moving average (MA) of 835.34, below the 50-day MA of 834.96, and above the 200-day MA of 797.31, indicating a neutral trend. The MACD of -7.03 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 25.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7347.

Mercuria Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8737	73 Outperform	¥18.57B	5.94	―	5.27%	18.05%	34.17%
3772	69 Neutral	¥20.16B	108.75	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
9257	66 Neutral	¥18.75B	6.51	―	0.24%	―	―
3454	63 Neutral	¥17.11B	9.78	―	2.86%	36.31%	52.62%
7347	62 Neutral	¥15.87B	231.48	―	2.52%	1.35%	-91.61%
8783	41 Neutral	¥9.30B	―	―	―	-17.04%	46.36%

Mercuria Holdings Co., Ltd. Corporate Events

Mercuria Holdings Expects Record-High Profit Amid Strategic Adjustments

Mercuria Holdings Co., Ltd. has revised its targets and expects to achieve a record-high full-year profit for the fiscal year ending December 31, 2025. The company anticipates realizing performance fees and principal investment income from its Buyout Fund I in the fourth quarter, despite a low achievement rate in the third quarter due to unrealized performance fees and currency fluctuations. Additionally, Mercuria Holdings is working to meet the listing maintenance criteria for the TSE Prime Market by enhancing its disclosure practices to boost its stock price.

The most recent analyst rating on (JP:7347) stock is a Hold with a Yen886.00 price target. To see the full list of analyst forecasts on Mercuria Holdings Co., Ltd. stock, see the JP:7347 Stock Forecast page.

Mercuria Holdings Reports Decline but Expects Recovery by Year-End

Mercuria Holdings Co., Ltd. reported a significant decline in its financial performance for the first nine months of 2025, with operating revenue and profits showing a substantial year-on-year decrease. Despite the downturn, the company has revised its full-year forecast upwards, indicating expectations of a strong recovery by the end of the fiscal year, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:7347) stock is a Hold with a Yen886.00 price target. To see the full list of analyst forecasts on Mercuria Holdings Co., Ltd. stock, see the JP:7347 Stock Forecast page.

Mercuria Holdings Revises 2025 Earnings Forecast Amid Divestment Progress

Mercuria Holdings Co., Ltd. has revised its full-year consolidated earnings forecast for 2025, reflecting an increase in operating revenue and profit expectations due to the divestment process of portfolio companies held by its Buyout fund. This revision indicates a potential realization of performance fees and investment income, impacting the company’s profitability for the fiscal year.

The most recent analyst rating on (JP:7347) stock is a Hold with a Yen886.00 price target. To see the full list of analyst forecasts on Mercuria Holdings Co., Ltd. stock, see the JP:7347 Stock Forecast page.

Mercuria Holdings Reports Decline but Expects Strong Year-End Recovery

Mercuria Holdings Co., Ltd. reported a significant decline in its financial performance for the first nine months of 2025, with operating revenue and profit showing substantial decreases compared to the previous year. Despite the downturn, the company has revised its full-year forecast upwards, indicating expectations of a strong recovery in the final quarter, which could positively impact stakeholders and improve its market positioning.

The most recent analyst rating on (JP:7347) stock is a Hold with a Yen886.00 price target. To see the full list of analyst forecasts on Mercuria Holdings Co., Ltd. stock, see the JP:7347 Stock Forecast page.