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Mercari (MCARY)
OTHER OTC:MCARY
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Mercari
(OTC:MCARY)
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Rating:64Neutral
Price Target:
$8.50
▲(12.43% Upside)
Mercari's overall score reflects strong profitability and growth potential, particularly in fintech, but is tempered by concerns over cash flow and revenue growth challenges. The technical indicators suggest a balanced momentum, while the valuation appears reasonable. The company's optimistic future guidance provides a positive outlook, but execution will be key.
Mercari (MCARY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.47B
Dividend YieldN/A
Average Volume (3M)14.00
Price to Earnings (P/E)14.0
Beta (1Y)0.59
Revenue Growth2.46%
EPS Growth95.96%
CountryUS
Employees2,080
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.30
Shares Outstanding329,245,270
10 Day Avg. Volume44
30 Day Avg. Volume14
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)5.21
Price to Sales (P/S)2.00
P/FCF Ratio-8.60
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.18
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Mercari Business Overview & Revenue Model
Company DescriptionMercari, Inc. (MCARY) is a leading online marketplace based in Japan that allows users to buy and sell a wide variety of new and used items, ranging from clothing and electronics to home goods and collectibles. Founded in 2013, Mercari operates primarily in the consumer-to-consumer (C2C) sector, empowering individuals to declutter their homes and find great deals while fostering a community-oriented shopping experience. The platform is accessible via a user-friendly mobile app and website, streamlining the process of listing items for sale and browsing available products.
How the Company Makes MoneyMercari 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 Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong financial performance and significant challenges. Record profitability across all segments and notable fintech growth were overshadowed by underwhelming revenue growth and challenges in the U.S. market.Q4-2025 Updates
Positive Updates
Record High Core Operating Profit
Mercari reported a core operating profit of JPY 27.5 billion, significantly exceeding forecasts with a 46% year-on-year growth.
Profitability Across All Segments
For the first time, all three business segments—Marketplace, Fintech, and U.S.—achieved full year profitability.
Strong Growth in Fintech
Fintech business core operating profit reached JPY 4.5 billion, surpassing the initial target of JPY 3 billion. The credit balance grew by 32% year-on-year.
AI Integration and Productivity Gains
95% of employees are using AI tools, resulting in a 64% year-over-year increase in development output per engineer.
Cross-Border Transaction Growth
Cross-border transaction GMV grew to JPY 90 billion, accounting for approximately 8% of total Marketplace GMV, with a 15-fold increase since FY 2022.
Negative Updates
Revenue Growth Challenge
Overall revenue growth was only 3%, reaching JPY 192.6 billion, falling short of forecasts.
Marketplace GMV Growth Below Target
Marketplace GMV growth was 4%, below the targeted 10% year-on-year growth.
U.S. Business GMV Decline
Despite achieving profitability, the U.S. business has seen a downward trend in GMV and revenue over the last three years.
Company Guidance
During Mercari's FY 2025 Full Year Financial Results Presentation, the company revealed that their core operating profit reached JPY 27.5 billion, surpassing forecasts with a year-on-year growth of 46%. However, revenue was JPY 192.6 billion, marking a 3% increase, but fell short of expectations due to a slowdown in marketplace and U.S. business growth. Despite these challenges, all three core segments—Marketplace, Fintech, and U.S.—achieved profitability, with cross-border transaction GMV surpassing JPY 90 billion and Mercard issuances exceeding 5 million. The company aims for a double-digit CAGR in revenue and over 25% CAGR in core operating profit by FY 2027, driven by Marketplace enhancements and Fintech growth, including a 32% increase in credit balance. For FY 2026, Mercari forecasts revenue of JPY 200-210 billion and core operating profit of JPY 28-32 billion, with plans to capitalize on AI to enhance user experience and maintain robust growth across all segments.Mercari Financial Statement Overview
Summary
Mercari shows strong revenue growth and profitability with a robust gross profit margin of 69.2%. However, the net profit margin is lower at 7.18%, and cash flow challenges are notable with negative free cash flow growth. The balance sheet is solid with a healthy ROE of 18.74%, but the leverage is moderate with a debt-to-equity ratio of 2.69.Income Statement
Mercari has shown a consistent revenue growth trajectory, with a 8.93% increase from 2023 to 2024. The gross profit margin is robust at approximately 69.2% in 2024, indicating strong profitability. However, the net profit margin is relatively lower at 7.18%, suggesting that operating expenses are significant. EBIT and EBITDA margins stand at 10.07% and 10.89%, respectively, showing operational efficiency but room for improvement in cost management.75
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 2.69, indicating moderate leverage. The return on equity (ROE) is healthy at 18.74%, showing effective utilization of equity. The equity ratio of 14.32% suggests a balanced capital structure, though there is potential risk due to significant liabilities relative to assets.65
Positive
Cash Flow
Mercari's cash flow statement reveals challenges, with negative free cash flow growth, highlighting potential cash management issues. The operating cash flow to net income ratio is negative, indicating that operating activities are not generating sufficient cash relative to net income. However, the company has managed financing activities well, with significant cash reserves.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 182.62B | 192.63B | 187.41B | 172.06B | 147.05B | 106.11B |
| Gross Profit | 124.63B | 138.26B | 129.73B | 114.42B | 95.14B | 81.80B |
| EBITDA | 19.79B | 29.67B | 20.42B | 17.96B | -2.90B | 6.03B |
| Net Income | 12.51B | 26.11B | 13.46B | 13.07B | -7.57B | 5.72B |
Balance Sheet | ||||||
| Total Assets | 501.77B | 543.76B | 501.77B | 415.29B | 339.86B | 262.53B |
| Cash, Cash Equivalents and Short-Term Investments | 197.31B | 147.03B | 197.31B | 204.73B | 218.85B | 171.46B |
| Total Debt | 193.31B | 199.38B | 193.31B | 157.53B | 131.35B | 71.15B |
| Total Liabilities | 429.63B | 444.12B | 429.63B | 360.06B | 301.87B | 222.52B |
| Stockholders Equity | 71.84B | 99.27B | 71.84B | 54.67B | 37.68B | 39.63B |
Cash Flow | ||||||
| Free Cash Flow | -43.49B | -12.25B | -43.49B | -37.35B | -26.89B | 2.95B |
| Operating Cash Flow | -43.34B | -11.95B | -43.34B | -36.88B | -26.22B | 3.37B |
| Investing Cash Flow | -877.00M | -31.36B | -877.00M | -632.00M | -671.00M | 6.91B |
| Financing Cash Flow | 32.09B | 504.00M | 32.09B | 26.84B | 62.06B | 19.77B |
Mercari Technical Analysis
Negative
7.56
Price Trends
7.72
Negative
8.04
Negative
7.84
Negative
Market Momentum
<0.01
Negative
46.05
Neutral
15.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCARY, the sentiment is Negative. The current price of 7.56 is above the 20-day moving average (MA) of 7.49, below the 50-day MA of 7.72, and below the 200-day MA of 7.84, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCARY.
Mercari Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $6.79B | 20.45 | 22.92% | 2.86% | 10.93% | -10.89% | |
| ― | $45.49B | 22.01 | 42.63% | 1.14% | 3.05% | -10.82% | |
| ― | $6.46B | 52.15 | ― | ― | 2.38% | -38.88% | |
| ― | $2.47B | 13.99 | 31.21% | ― | 2.46% | 95.96% | |
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | $14.56B | 97.66 | 34.48% | ― | 9.04% | -56.79% | |
| ― | $1.14B | ― | -58.93% | ― | -10.39% | 14.92% |
* Consumer Cyclical Sector Average
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Mercari Corporate Events
Mercari, Inc. Reports Strong Profit Growth in 2025
Aug 6, 2025
Mercari, Inc., a prominent player in the e-commerce and fintech sectors, is known for its innovative marketplace platform and financial services, primarily operating in Japan and the United States.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.