Mercari (MCARY) AI Stock Analysis

• Market Cap: $2.43B
• Dividend Yield: N/A
• Average Volume (3M): 14.00
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.56
• Revenue Growth: 5.63%
• EPS Growth: 111.35%
• Country: US
• Employees: 2,080
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.10
• Shares Outstanding: 329,384,370
• 10 Day Avg. Volume: 44
• 30 Day Avg. Volume: 14
• PEG Ratio: 0.18
• Price to Book (P/B): 4.44
• Price to Sales (P/S): 2.29
• P/FCF Ratio: -35.96
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $10.50 ▲(12.66% Upside)

Mercari's strong technical indicators and fair valuation are the most significant factors driving its stock score. However, financial performance concerns, particularly high leverage and negative cash flows, temper the overall outlook. Investors should be cautious of potential overbought conditions indicated by technical analysis.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful business strategies, enhancing Mercari's competitive position.

Profitability

A high gross profit margin reflects efficient cost management and pricing power, supporting long-term profitability.

Return on Equity

A strong ROE indicates effective management and the ability to generate returns on shareholder investments, boosting investor confidence.

Negative Factors

Cash Flow Challenges

Negative cash flow growth can limit operational flexibility and investment capacity, posing risks to long-term financial health.

Net Profit Margin

A lower net profit margin indicates high operating costs, which can constrain profitability and require cost management improvements.

Leverage

Moderate leverage increases financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Mercari Business Overview & Revenue Model

Company Description

Mercari, Inc. engages in the planning, development, and operation of the Mercari marketplace applications in Japan and the United States. Mercari, Inc. was incorporated in 2013 and is based in Tokyo, Japan.

How the Company Makes Money

Mercari generates revenue primarily through transaction fees charged on sales made through its platform. When a seller lists an item and completes a sale, Mercari typically takes a percentage of the transaction as a commission, which serves as the main revenue stream. Additionally, the company offers optional services such as promoted listings and shipping solutions, which provide sellers with enhanced visibility and convenience for a fee. Mercari has also formed strategic partnerships with logistics providers to optimize shipping processes, further enhancing user experience and potentially increasing sales volume. Overall, the company leverages its expansive user base and diverse listings to drive consistent revenue growth.

Mercari Financial Statement Overview

Summary

Mercari shows strong revenue growth and improved profitability, but high leverage and negative cash flows are significant concerns. The company needs to focus on improving its cash flow management and reducing debt levels to enhance financial stability.

Income Statement

Mercari has shown consistent revenue growth over the years, with a notable increase in gross profit margins. The company has improved its net profit margin significantly, indicating better cost management and operational efficiency. However, the EBIT and EBITDA margins suggest room for improvement in operational profitability.

Balance Sheet

The company's debt-to-equity ratio has decreased, indicating a reduction in leverage, but it remains relatively high, which could pose financial risk. Return on equity has improved, reflecting better profitability for shareholders. The equity ratio suggests a stable asset base, but the high debt levels warrant caution.

Cash Flow

Mercari's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating that the company is generating cash relative to its net income, but the negative growth in free cash flow highlights liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	192.63B	192.63B	187.41B	172.06B	147.05B	106.11B
Gross Profit	138.26B	138.26B	129.73B	114.42B	95.14B	81.80B
EBITDA	29.67B	29.67B	20.42B	17.96B	-3.05B	6.03B
Net Income	26.11B	26.11B	13.46B	13.07B	-7.57B	5.72B
Balance Sheet
Total Assets	543.76B	543.76B	501.77B	415.29B	339.86B	262.53B
Cash, Cash Equivalents and Short-Term Investments	147.03B	147.03B	197.31B	204.73B	218.85B	171.46B
Total Debt	199.38B	199.38B	193.31B	157.53B	131.35B	71.15B
Total Liabilities	444.12B	444.12B	429.63B	360.06B	301.87B	222.52B
Stockholders Equity	99.27B	99.27B	71.84B	54.67B	37.68B	39.63B
Cash Flow
Free Cash Flow	-12.25B	-12.25B	-43.49B	-37.35B	-26.89B	2.95B
Operating Cash Flow	-11.95B	-11.95B	-43.34B	-36.88B	-26.22B	3.37B
Investing Cash Flow	-31.36B	-31.36B	-877.00M	-632.00M	-671.00M	6.91B
Financing Cash Flow	504.00M	504.00M	32.09B	26.84B	62.06B	19.77B

Mercari Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCARY, the sentiment is Positive. The current price of 9.32 is above the 20-day moving average (MA) of 8.42, above the 50-day MA of 7.85, and above the 200-day MA of 8.06, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 73.72 is Negative, neither overbought nor oversold. The STOCH value of 100.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCARY.

Mercari Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNSO	72 Outperform	$5.90B	19.90	20.83%	3.15%	13.37%	-19.37%
MCARY	71 Outperform	$2.43B	13.68	31.21%	―	5.63%	111.35%
EBAY	70 Outperform	$37.28B	17.95	42.43%	1.41%	4.89%	17.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	57 Neutral	$5.26B	37.23	―	―	1.98%	-20.98%
TDUP	57 Neutral	$1.09B	―	-35.37%	―	-4.90%	50.77%
CHWY	54 Neutral	$13.88B	94.44	34.48%	―	9.04%	-56.79%

Mercari Corporate Events

Mercari, Inc. Reports Strong Q3 2025 Earnings

Mercari, Inc., a prominent player in the e-commerce sector, operates a popular marketplace app facilitating peer-to-peer transactions in Japan and the United States, with a focus on enhancing user experience and expanding cross-border transactions.