MTG Co., Ltd. (7806) AI Stock Analysis

• Market Cap: ¥223.47B
• Dividend Yield: 0.53%
• Average Volume (3M): 347.40K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.85
• Revenue Growth: 37.49%
• EPS Growth: 370.72%
• Country: JP
• Employees: 1,275
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 100.40
• Shares Outstanding: 40,103,527
• 10 Day Avg. Volume: 217,370
• 30 Day Avg. Volume: 347,396
• PEG Ratio: 0.09
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 1.85
• P/FCF Ratio: -222.83
• 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): 250.63
• Revenue Forecast (FY): ¥123.83B

• Rating: 70 Outperform
• Price Target: ¥6,248.00 ▲(51.28% Upside)
• Action: Upgraded Date: 12/19/25
• Date: Action: Upgraded 12/19/25

MTG Co., Ltd. has a strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet. However, cash flow management issues and moderate valuation metrics slightly dampen the overall score. Technical indicators show a positive trend, contributing to a stable outlook.

Positive Factors

Profitability & Margins

High gross margin (62.75%) and improving EBIT/EBITDA margins indicate durable product pricing power and efficient cost structure. Combined with positive net margin and recent revenue growth, this supports sustainable operating profitability and reinvestment capacity over the medium term.

Balance Sheet Strength

Very low leverage and a solid equity base provide financial flexibility to fund investments or withstand economic stress. A healthy ROE (~15.6%) shows effective capital use, enabling the company to pursue growth or strategic initiatives without immediate reliance on external financing.

Diversified Revenue Model

A multi-channel sales mix plus subscription offerings and partnerships creates diversified demand sources and recurring revenue elements. This reduces dependence on any single channel, improves customer retention potential, and supports steadier top-line performance across market cycles.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow signals the business is not yet converting accounting profits into surplus cash. That constrains internal funding for capex, marketing, or dividends and may force reliance on external financing, limiting strategic flexibility over the medium term.

Cash Flow Growth & Capex/Working Capital

Declining free cash flow growth points to rising capex needs or inefficient working capital. Structural increases in inventory, receivables, or investment intensity can erode cash conversion and margin sustainability, pressuring liquidity if not addressed sustainably.

Rising Debt Trend

Although current leverage is low, an observable uptick in debt levels reduces the margin of safety over time. If the trend continues it could increase fixed interest costs and constrain capital allocation, weakening resilience during economic slowdowns or industry headwinds.

MTG Co., Ltd. Business Overview & Revenue Model

Company Description

MTG Co., Ltd. (7806) is a Japanese company specializing in health and beauty products, particularly known for its innovative skincare and wellness solutions. The company operates primarily in the consumer goods sector and has established a strong presence in both domestic and international markets. MTG's core products include high-quality beauty devices, skincare products, and wellness items designed to enhance personal care and promote healthy living.

How the Company Makes Money

MTG Co., Ltd. generates revenue primarily through the sale of its health and beauty products, which are marketed through various channels including online platforms, retail stores, and direct sales. The company has a diversified revenue model that includes both one-time sales and subscription services for certain products. Key revenue streams include the sale of skincare devices, beauty supplements, and branded skincare lines. Additionally, MTG benefits from strategic partnerships with retailers and influencers that help expand its market reach and enhance brand visibility, contributing positively to its earnings.

MTG Co., Ltd. Financial Statement Overview

Summary

MTG Co., Ltd. shows strong revenue growth and profitability with a solid balance sheet. However, cash flow management is a concern due to negative free cash flow, which could impact future growth.

Income Statement

MTG Co., Ltd. has demonstrated strong revenue growth, with an 8.13% increase in the latest year, indicating robust demand for its products. The company maintains healthy profitability metrics, with a gross profit margin of 62.75% and a net profit margin of 8.03%. The EBIT and EBITDA margins have also improved significantly, reflecting efficient cost management and operational leverage. These factors contribute to a strong income statement performance.

Balance Sheet

The balance sheet of MTG Co., Ltd. is solid, with a low debt-to-equity ratio of 0.073, indicating minimal leverage and financial risk. The return on equity stands at 15.56%, showcasing effective utilization of shareholders' funds. The equity ratio is strong, reflecting a stable financial position. However, the slight increase in debt levels warrants monitoring.

Cash Flow

MTG Co., Ltd. faces challenges in cash flow management, with negative free cash flow and a free cash flow to net income ratio of -0.10. Although operating cash flow has improved, the negative free cash flow growth rate suggests potential issues in capital expenditure or working capital management. The company needs to focus on improving its cash flow generation to support long-term growth.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	98.81B	71.86B	60.15B	48.98B	42.70B
Gross Profit	62.00B	43.10B	36.86B	31.43B	30.09B
EBITDA	11.84B	4.89B	3.85B	4.49B	4.48B
Net Income	7.93B	2.28B	1.98B	2.69B	5.59B
Balance Sheet
Total Assets	75.20B	58.48B	54.45B	49.94B	46.94B
Cash, Cash Equivalents and Short-Term Investments	11.30B	12.96B	16.14B	16.53B	15.65B
Total Debt	3.71B	178.00M	133.00M	122.00M	161.00M
Total Liabilities	24.20B	13.96B	11.74B	8.66B	8.79B
Stockholders Equity	51.00B	44.46B	41.93B	40.85B	38.05B
Cash Flow
Free Cash Flow	-821.00M	-3.23B	1.24B	874.00M	3.35B
Operating Cash Flow	7.83B	983.00M	2.69B	1.88B	3.93B
Investing Cash Flow	-11.29B	-4.50B	-2.79B	-1.88B	-750.00M
Financing Cash Flow	1.85B	195.00M	195.00M	1.05B	-779.00M

MTG Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4130.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7806, the sentiment is Positive. The current price of 4130 is below the 20-day moving average (MA) of 4951.25, below the 50-day MA of 4720.10, and below the 200-day MA of 4356.44, indicating a bullish trend. The MACD of 272.02 indicates Negative momentum. The RSI at 71.19 is Negative, neither overbought nor oversold. The STOCH value of 76.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7806.

MTG Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7956	77 Outperform	¥203.56B	24.07	―	4.66%	11.38%	79.21%
4928	76 Outperform	¥161.73B	19.22	―	5.00%	1.41%	0.75%
4919	71 Outperform	¥88.54B	26.45	6.83%	3.53%	3.05%	-32.61%
7806	70 Outperform	¥223.47B	23.76	―	0.53%	37.49%	370.72%
3180	70 Outperform	¥16.77B	18.18	―	1.11%	13.45%	-5.58%
4923	66 Neutral	¥39.11B	26.30	―	1.81%	0.22%	4.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

MTG Co., Ltd. Corporate Events

MTG Boosts Quarterly Profit and Lifts Full-Year Outlook as Assets and Dividends Rise

MTG Co., Ltd. reported a strong start to its fiscal year, with net sales for the quarter ended December 31, 2025 rising 45.4% year on year to ¥34.4 billion and operating profit climbing 53.9% to ¥5.7 billion, lifting profit attributable to owners of parent by 66.1% to ¥3.9 billion. Total assets increased to ¥91.2 billion, though the equity ratio declined to 59.0%, and the company maintained its dividend stance while projecting full-year fiscal 2026 sales of ¥128.0 billion and profit growth, supported in part by the consolidation of Kirala Inc. and a revised earnings forecast.

The board plans a total dividend of ¥30 per share for the fiscal year ending September 30, 2026, up from ¥25 in the prior year, signaling confidence in sustained earnings momentum. MTG expects operating and ordinary profit to grow more than 30% for the full year, and has adopted specific quarterly accounting treatments as it integrates new subsidiaries, developments that will be closely watched by investors assessing its balance between growth, leverage, and shareholder returns.

The most recent analyst rating on (JP:7806) stock is a Buy with a Yen4601.00 price target. To see the full list of analyst forecasts on MTG Co., Ltd. stock, see the JP:7806 Stock Forecast page.