MRK Holdings, Inc. (9980) AI Stock Analysis

• Market Cap: ¥10.94B
• Dividend Yield: 1.05%
• Average Volume (3M): 522.25K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.67
• Revenue Growth: 6.19%
• EPS Growth: 79.98%
• Country: JP
• Employees: 1,788
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 5.77
• Shares Outstanding: 101,295,074
• 10 Day Avg. Volume: 294,200
• 30 Day Avg. Volume: 522,246
• PEG Ratio: 2.47
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 5.74
• 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: 71 Outperform
• Price Target: ¥119.00 ▲(29.35% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid financial foundations (strong gross margins and low leverage) alongside a relatively low P/E. This is tempered by weak bottom-line profitability (low net margin and ROE) and technically stretched momentum signaled by an elevated RSI, which increases near-term downside risk.

Positive Factors

Very high gross margin

A 74.6% gross margin signals durable product-level pricing power or low direct costs, providing structural protection for profits before operating expenses. Over months this margin supports reinvestment in distribution, product development, or margin defense versus peers.

Conservative balance sheet

Very low leverage and a strong equity ratio create long-term financial flexibility. The company can fund growth, withstand demand shocks, or pursue strategic investments without raising expensive capital, reducing structural refinancing risk.

Revenue growth and improving cash flow

Consistent top-line growth combined with a return to positive free cash flow indicates improving core business economics. Over the medium term this supports self-funded expansion, reduces reliance on external financing, and strengthens operational resilience.

Negative Factors

Thin net profitability

Low net margin and weak ROE show limited ability to convert strong gross margins into shareholder returns. Structurally this suggests high overhead, non-operating drains, or pricing/marketing investments that constrain sustained earnings power and capital returns.

Modest operating margins

Subdued EBIT/EBITDA margins point to relatively high operating and SG&A cost structure versus gross profit. Over months this reduces the buffer against margin compression and limits reinvestment capacity unless operating efficiency improves materially.

Low cash conversion ratio

A low FCF-to-net-income ratio indicates weak conversion of accounting earnings into spendable cash, possibly from working capital or capex demands. This structural gap can restrict dividends, buybacks, or debt reduction during revenue volatility.

MRK Holdings, Inc. Business Overview & Revenue Model

Company Description

MRK Holdings Inc. engages in the maternity and baby related business in Japan. The company offers maternity wear, nursing clothes, maternity innerwear, baby wear, and baby gifts. It is also involved in the body makeup, beauty, and wedding and banquet related businesses. The company was formerly known as Maruko Co., Ltd. and changed its name to MRK Holdings Inc. in October 2018. MRK Holdings Inc. was incorporated in 1978 and is headquartered in Osaka, Japan. MRK Holdings Inc. operates as a subsidiary of RIZAP GROUP, Inc.

MRK Holdings, Inc. Financial Statement Overview

Summary

Strong revenue growth (+8.0%) and very high gross margin (74.6%) support fundamentals, and the balance sheet is healthy with low leverage (debt-to-equity 0.10; equity ratio 72.4%). Offsetting this, profitability is thin (net margin 1.2%, ROE 1.7%) and cash flow, while improved (FCF turned positive), still trails the stronger operating cash conversion.

Income Statement

MRK Holdings, Inc. has demonstrated consistent revenue growth with a 8.0% increase from 2024 to 2025. The gross profit margin remains strong at 74.6%, indicating efficient cost management. However, the net profit margin is relatively low at 1.2%, suggesting limited profitability after expenses. EBIT and EBITDA margins are modest at 2.2% and 6.0% respectively, reflecting operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.10, indicating prudent leverage. The equity ratio is robust at 72.4%, showcasing strong asset backing by equity. Return on equity is modest at 1.7%, reflecting moderate profitability relative to shareholder investment.

Cash Flow

MRK Holdings, Inc. has shown improvement in free cash flow, turning positive in 2025. The operating cash flow to net income ratio is strong at 6.7, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is lower at 5.6, suggesting room for improvement in cash flow management.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	21.41B	21.15B	19.58B	19.54B	18.83B	18.33B
Gross Profit	15.97B	15.79B	14.76B	14.84B	14.34B	14.11B
EBITDA	710.08M	887.40M	841.98M	1.11B	1.07B	1.08B
Net Income	337.46M	254.16M	225.27M	514.14M	423.42M	121.81M
Balance Sheet
Total Assets	18.97B	20.20B	22.02B	18.05B	17.34B	18.01B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.12B	2.56B	2.56B	5.29B	7.28B
Total Debt	1.06B	1.54B	3.67B	175.36M	182.77M	732.95M
Total Liabilities	4.70B	5.57B	7.46B	3.80B	3.55B	4.65B
Stockholders Equity	14.27B	14.63B	14.56B	14.25B	13.80B	13.36B
Cash Flow
Free Cash Flow	0.00	1.43B	-1.11B	-733.51M	-173.95M	2.49B
Operating Cash Flow	0.00	1.71B	-849.03M	-264.54M	101.72M	2.94B
Investing Cash Flow	0.00	442.01M	-2.41B	-2.23B	-1.29B	-1.00B
Financing Cash Flow	0.00	-2.60B	3.27B	-239.05M	-782.97M	424.17M

MRK Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 92.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9980, the sentiment is Neutral. The current price of 92 is below the 20-day moving average (MA) of 120.15, below the 50-day MA of 105.30, and below the 200-day MA of 96.22, indicating a neutral trend. The MACD of 3.12 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 2.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9980.

MRK Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	78 Outperform	¥169.00B	9.78	10.24%	2.43%	6.08%	8.55%
9980	71 Outperform	¥10.94B	3.92	―	1.05%	6.19%	79.98%
3002	66 Neutral	¥138.87B	17.53	2.80%	3.38%	>-0.01%	-49.83%
2685	64 Neutral	¥128.50B	9.43	11.70%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3591	59 Neutral	¥211.89B	39.72	5.31%	2.29%	-6.04%	146.54%
3529	57 Neutral	¥16.07B	-14.15	―	―	4.15%	-289.87%